Offshoreboken 2014 by Offshore.no AS

The Norwegian

Continental Shelf

2014 Offshore.no AS now a part of Schibsted Media Group

The Norwegian Continental Shelf 2014 Published by Offshore.no AS Solheimsviken 18, PB. 2318, Solheimsviken, 5824 Bergen www.offshore.no Chief Editor Helge Keilen Design and Layout Mona Bruvik Printed by Merkur-Trykk AS, Oslo Compiled and written by John Økland Glenn Stangeland John Bradbury Ane Madsen Profile Reservation salg@offshore.no +47 55 20 72 00 www.offshore.no Special Thanks to Bjørn Vidar Lerøen Hans Henrik Ramm Jarand Rystad Erlend Keilen Henry Boddington Jacopo Ferretti

Suppliers to the Norwegian Continental Shelf 2014

Exploration 3M GVA NorSea Group AS Rig market Coast Center Base AS (CCB) COSL Drilling Europe Fugro Render Westcon Field development Agility Group Fugro Multiconsult Rapp Bomek AS OTD Subsea Marwin Oceaneering MMO Bilfinger Karsten Moholt AS Maskin K Lund Scanmatic STS Gruppen Pepperl + Fuchs Oil Companies Cameron Kvale advokatfirma RS online Job market Vex-gruppen AS supply bases Coast Center Base AS (CCB) shipyards Port of TromsĂ¸ oil cities Bergen Skipsinnredning Frank Mohn AS Roughneck beyond norway IR Vision AS

CONTENTS 09 Forecast 20 01/ Exploration

the barents sea exploration boom

38 02/ Rig market

all sold out - 14 new rigs on their way

68 03/ Field development

a statoil giant in every sea

84 04/ Subsea

huge market growth 71%

98 05/ Onshore bases

the future spells expansion

112 06/ Maintenance & Modifications

major mmo-investments ahead

130 07/ Decom

the next market

136 08/ Oil companies 146 09/ Job market

4,000 rig workers needed

156 10/ Supply bases moving on up

170 11/ Shipyards

continuing a maritime tradition

190 12/ Fabrication making more

202 13/ Oil cities

boom towns

216 14/ Beyond Norway

exporting expertise

Forecast

saves little CO2 by using wind and solar to replace other power production, but loses much because gas is replaced with polluting coal.

Photo: Maria Oksvold

The gas headache

By Helge Keilen

The International Energy Agency (IEA) reports that shale oil and gas over the next five years will thoroughly change the energy market. While the US has experienced a shale oil and gas revolution, Europe is close to being dependent on imported energy. As well as trying to meet ambitious climate goals, the European Union is now focusing on developing its own shale gas production. Being one of the world´s largest natural gas exporters, Norway is trying to market gas as a key component in the future European energy mix. Focusing on a reliable and more efficient energy supply with lower CO2 emissions, Norway feels that natural gas has the greatest potential. But competition is fierce. In the ´Decade of natural gas´ coal now seems to be taking over, and threatens to surpass oil as the world´s primary energy source in 2017. The main reason is cheap coal for power production, where it has a 40% market share, whereas gas only has 22%. In comparison coal accounts for 73% of total CO2 power production emissions. The IEA fears that the world´s coal demand will increase by 500,000 million tonnes every day over the next five years, in spite of the fact that the fiercest de-carbonization goals are set within the power supply sector because others, like transport, are deemed much more difficult to address. Being unable to succeed within power production, the whole climate policy may appear futile. Coal also expands in spite of the billions of dollars poured into renewable energy all over the world. In Europe one

Lately the IEA has stated that only fierce competition from cheap gas can reduce coal demand. Coal is thus the problem and gas is the solution. This simple fact is not taken up by the green Non-Governmental Organisations who continue their heavy attacks on unconventional oil and gas, and demand Norway should reduce its petroleum activity. The IEA wants more and cheaper gas – and fast. Norway has started a process of transferring the gas price away from oil indexing. The number of oil indexed gas contracts now sold is below 50%, and decreasing. Norway will lose money, but the alternative is that Norwegian gas loses market share to coal and LNG. As gas becomes a regular commodity and prices no longer follow the oil price, what can Norway do? European gas prices will hardly increase considerably in the future, so much is dependent on Norway itself. Unfortunately there have been few large NCS gas discoveries lately, and Norway’s gas production threatens to fall sharply after 2020. For Europe this means even more dependence on Russian gas. Norway therefore needs to show that it has sufficient resources, and that it is able to find them. Under these shifting circumstances it is important that Norway actively develops the Barents Sea, including a large pipeline. It may seem a high-risk venture, but the option is that Norway loses its market share and credibility in the future European energy mix deliveries.

Helge Keilen, Editor-in-Chief, Offshore Media Group

Forecast

NORWAY: Oiled and vulnerable

By Bjørn Vidar Lerøen, energy commentator

Norway is still an economic exception in Europe and elsewhere, but the oiled economy has created at least two problems: more money than any government can justify spending and a high cost level and less competition power. Lower oil and gas prices will create additional problems. When Norway took the chairmanship in the Organisation for Economic Co-operation and Development (OECD) in 2013, Norwegian Prime Minister Jens Stoltenberg, by profession an economist, stated that the problem in many European countries is that they spend money they do not have while Norway has money that cannot be spent. Since the early 1990s Norway has put aside most of the revenues flowing from the oil and gas production from the continental shelf. The Norwegian petroleum based pension fund has reached the enormous amount of some NOK 4,500 billion . The national economy in a country with only five million people is simply not able to consume the whole oil and gas revenue without damaging state finances severely. No other activity in the history of Norway has created a bigger savings account than production of oil and gas. Nevertheless the petroleum industry is increasingly disputed. Exploration off Lofoten and Vesterålen and around Senja has become the ultimate symbol for the battle against opening new acreage for the petroleum industry. Little Norway is, by virtue of its big money, in a unique situation in today’s world, but the flow of oil and gas and money is far from being supported by all people in this petroleum rich nation. Not only environmentalist, but also a number of politicians and even bishops in the Norwegian Lutheran Church are asking for a new order of energy and environment. In the so-called red-green government the tensions between the coalition partners are very visible. The Labour Party - Arbeiderpartiet- has drawn the main lines in the petroleum policy from the very beginning. For the very first time the party has been part of a coalition together with Sosialistisk Venstreparti ,the very left wing party, and Senterpartiet - the farmers party. The labour party is of dominant magnitude, but the two minors have succeeded in blocking exploration in the disputed areas offshore Northern Norway. Nevertheless, the last white paper from the Government to the Parliament on petroleum activities

Forecast

holds the headline: an industry for the future. The minister of oil and Energy, Mr Ola Borten Moe may not reflect the main streams in his party while taking a very positive position toward the industry. Within the farmer party the oil and gas industry is disputed and the official position of the party is to slow down the sector. Borten Moe, the grandchild of Per Borten, the Prime Minister when Norway made its first commercial oil discovery in 1969, is regarded as the very best friend of the petroleum industry and one of the best oil ministers in Norway ever. In connection with the 2013 parliamentary elections, a campaign was launched called Klimavalg 2013 (2013 Climate Election). The Lutheran Church of Norway and several other Christian organisations joined the network. Several Church of Norway bishops voiced criticism again a further development of the Norwegian oil and gas industry. In April 2013, the top authority of the church (Kirkemøtet) encouraged “all church members to let a sound climate policy and the work for global justice weigh heavily in their considerations ahead of the election.” This statement has created debate and confusions within the church and the board of bishops and raised questions on what is the essential mission of the church. In a national context one can ask what can replace oil and gas for creating jobs and revenues. In a global context it is about finding alternatives to hydrocarbons. However, the Norwegian crude oil production is decreasing despite new discoveries in the giant magnitude class, e.g. Johan Sverdrup. To maintain the level of Norwegian oil production more than one Sverdrup discovery is needed per annum. So far the industry operating in Norwegian waters can refer to an extremely good story on increased oil recovery. This has added significant volumes, but in the long run new acreage must be open to secure new discoveries. Gas production still has a potential to grow, but fundamental changes in the market rise deep concerns. The shale gas revolution has potential to change the word of gas dramatically. The Snøhvit gas field off Hammerfest in Northern Norway was developed on the basis of increasing US gas imports. Today the receiving terminal for LNG at Cove Point in the state of Maryland has reverted to exports as the US has elevated to its new position as a gas exporter. There is no more need for gas from Northern Norway, less than ten years after US officials praised Norway for the decision to develop and put Snøhvit onstream. In Germany, the biggest market for piped gas from Norway, energy from wind, solar and coal has made life more difficult and uncertain for Norwegian gas exporters. The

big German paradox however is that while wind and solar is sweeping natural gas away, the use of coal is increasing and new jobs are created in the oldest of the hydrocarbon industries. Also US coal exports are up and in countries like China and India coal consumption is growing. For the moment Norwegian oil and gas investments are about to peak at a new all-time high. This is just one example of Norway going against the stream in Europe. However, Norway is not completely protected against problems. Prime Minister Jens Stoltenberg has time and time again warned that the crisis could hit Norway too. Part of the concern is Norway’s high level of costs. How can Norway defend this during a recession? A clear signal that the country has a high cost level is that many of the construction contracts for the oil industry are awarded to international competitors. This has caused many discussions on who to blame for this. Access to rig capacity is another issue. This was studied by a government-appointed committee headed by former CEO of Hydro, Eivind Reiten. One of the committee’s conclusions was that operating a rig on the Norwegian shelf is 40% more costly than on the British shelf. A number of differences between the Norwegian and British shelves are described in the committee’s report. However, thus far, experience has shown that it is difficult, near on impossible, to do anything to level out these differences. In all likelihood, the crisis is not severe enough for the will to change to take hold. The oil and gas nation is simply doing too well. Oil and gas prices are under pressure for the time being. This is reflected in Statoil’s result for the second quarter in 2013. The result took the market by a shock as it was worse than expected from analysts. When Statoil’s CEO Helge Lund presented the 2Q 2013 result he expressed deep concern for the Norwegian cost level. The result was only half as good as a year ago. Mr Lund expressed the need for operating cost effectively in order to stay competitive in Norway and internationally. This is his philosophy behind Statoil’s plan to outsource 1 000 jobs from Stavanger to low cost countries. The proposal for outsourcing is met by opposition from the Stavanger mayor, several members of Parliament and of course union leaders. Clearly the oiled economy makes Norway vulnerable.

Forecast

Will the election change oil & gas policies?

By Hans Henrik Ramm

Oil and gas issues are not likely to play a major role before the national election in October, but the outcome could lead to some significant changes, even though main party lines will remain unchanged. This doesn’t mean that there is full agreement, or a lack of interest among people. It is rather that the election primarily is about the choice of government, and that much of the disagreement is the same within both main political camps. The three large parties all favour a high activity level, while the smaller parties on both sides want to slow it down more or less. In the election campaign, neither side will want to expose disagreement too strongly. Labour definitely depends on the Socialist Left Party and the Centre Party to stay in office. The Conservatives and the Progress Party may or may not depend on the Liberal Party and/or the Christian People’s Party. If the two former get a clear majority, which is possible, they will be in a much freer position after the election.

Lofoten and Vesterålen The smaller parties also like “oil money” and industrial spin-offs, and do not want to stop everything. Rather, the main disagreement is about opening new acreage. In particular, there has for many years been a battle around the areas outside Lofoten, Vesterålen, and Senja, which are also important fishing grounds. Numerous studies have shown that E&P activity would represent very little risk to the fisheries. Even after an extremely improbable “worst case” accident, the resources would be fully restored after some years, with no irreversible effects. Many fishermen are still opposed, but a large majority of the local politicians are eager to benefit from industrial spin-offs. Prime Minister Jens Stoltenberg has throughout the eight years of red-green government yielded to the internal opposition by accepting one delay after another. Now, it is expected that the Labour Party will favour a so-called “impact study” in its election platform. This is the final formal requirement before the Parliament can take an opening decision. Since most of the real work already has been done, it can be completed very quickly. However, the opening decision can still be delayed again, if that is necessary to keep a coalition together.

Forecast

For various reasons, the smaller non-socialist parties do not hold the same power over the Conservatives and the Progress Party. One reason is that they are unlikely to participate in government anyway. The two larger parties can therefore get support from Labour, if they need it. It is therefore very likely that we will see the start of E&P in this area in the event of a non-socialist victory.

Other new areas There is almost no disagreement about the opening of the south-east Barents Sea that was added to Norway through the delineation agreement with Russia. This decision will already have been taken before the summer 2013. The Government had also planned to propose opening an area around the small and remote Jan Mayen island, triggered by the outlook for possible E&P prospectivity in adjacent Icelandic waters. Surprisingly, this proposal has now been postponed until after the election. Officially, it is to provide more time for resource mapping, but this is not credible, since the impact study including a normal resource assessment had already been completed. More likely, the Socialist Left Party needed a new, small victory. But this doesn’t matter much, since the industry isn’t that eager, and the time perspective is very long anyway. But the opening decision will come later, and certainly under a non-socialist government.

Barentspipe The Barents Sea is turning into the industry’s new focal area, but the lack of transportation capacity for gas beyond the limited LNG plant at Melkøya threatens to become a show-stopper. The pipeline operator Gassco has therefore started a study with a view to a possible decision on a new pipeline in 2016. This is not politically very controversial, but financially demanding, and may require political and financial creativity by the next government.

Petroleum Tax Norway prides itself for having a stable and predictable petroleum tax system, which is also valued by the industry, no matter the high marginal tax. In the last period with low oil prices, some ten years ago, the industry asked for lower tax, but this was rejected, and the question has not been raised again. However, there is a lot of attention about increased oil recovery (IOR) and extended late life. It has proven hard to find the means to achieve this, since it really is a matter of profitability and prioritising of limited human capital. Hence, the non-socialist parties have promised to consider possible tax amendments that could favour IOR. Targeting IOR only is, however, going to be hard, and a new study would naturally also take a look at other marginal resources. A new government would also have to pay more attention to the fact that we haven’t discovered enough gas to maintain exports to Europe for very long after 2020. Given the trend to disconnect gas pricing from oil prices, and the global abundance of gas, we cannot expect much resource rent from new gas fields. Also, improved framework conditions for gas would help the Barentspipe. This will raise the question of whether gas should be partially sheltered from Special Tax. This is not on the agenda today, but it is an additional argument for taking a new look at the system. It isn’t certain that “one size fits all” is feasible much longer.

CCS It is important for Norway to protect the long term gas market, since we have large yet-to-find resources that we will want to develop, with or without tax breaks. In the European gas market, gas has a weak short term outlook and a stronger medium term outlook, but in the long run, it is a widespread opinion that using gas for power and industry will require carbon capture and storage (CCS). Norway is therefore eager to mature this technology. An important contribution is the Mongstad Test Centre, but there is a need for at least one full-scale project. Unfortunately, the CCS policy was initially driven by Labour’s need to please the Socialist Left Party, and came to focus only at full-scale capture at existing facilities. The surviving project is also at Mongstad, but this is an extremely complicated site where CCS promises to be extremely expensive, and hardly worth the effort. Yet, the project is proceeding, and it will be an immediate worry for a new non-socialist government. All four non-socialist parties are more or less committed to seeking alternative sites. The best solution would have been a competition open also for greenfield projects, but this would mean adding even more power in addition to the large surplus that is expected due to the green certificate market established to encourage wind and hydro power. Since CCS at the other existing gas power plant, Kårstø will be too expensive, the non-socialists are more interested in a greenfield coal power project at Svalbard and some industry projects. The problem is that this way we will not have any gas power project. A possible way to solve this riddle is cooperation with the UK, where the final competition over getting government support is now between a gas power and a coal power project.

A new Parliament report? There are plenty of important strategic issues that should be regularly discussed with the public, and the industry has always had a need to understand the politicians’ long term objectives. In addition to what has been mentioned here, there are important ongoing discussions about the oil and gas industry’s macro-economic effects, the local spin-offs, Statoil’s dominance and international activities, the service industry’s competitiveness, safety, oil spill protection, and so on. We may also soon have to start discussions about our approach to the Barents Sea North around Svalbard. Until 2004, the custom was to submit comprehensive Parliament Reports on petroleum activities every second year. This tradition was broken under the red-green government, which preferred to expose internal disagreement as little as possible. It took seven years, until June, 2011, before there finally was a full report. This contained ambitious long term targets, and was well received. There will, however, be no update from the current government this year. It will therefore be up to a new government to return to the old two-year cycle. A non-socialist government will very likely do this, since they criticized the red-greens for dragging their feet, and since the civil service is eager. No promises have been made, but it is possible that there will be a new report before summer 2014.

Forecast

Norwegian production to peak around 2022

By Jarand Rystad

As shown in the field-by-field production profile below, 2012 was a good year for production on the Norwegian Continental Shelf (NCS). For the first time since the installation of SnĂ¸hvit and Ormen Lange in 2007, oil and gas production increased from one year to another. The increase was primarily driven by higher demand for Norwegian gas. Moving forward, it is expected that output from producing fields will decrease as shown by the brown colours. However, moving forward towards 2020 NCS production is expected to grow, as fields that are currently under construction will come online, shown in yellow. From 2013 to 2015 around 27 new fields are expected to commence production versus only ten new fields from 2010 to 2012. At the beginning of the next decade the production has the potential to peak at above 4 million barrels of oil equivalent per day as exceptional exploration results of the previous years are turned into production and old discoveries are finally ready for development shown in green. Ongoing and future exploration activity is expected to materialize into new discoveries. The potential from this activity is expected to contribute 70% of total production by 2040 .

Field-by-field production profile for total NCS oil and gas production by lifecycle - kboekboe/d. Source: UCube

Forecast

Jarand Rystad, CEO Rystad Energy

Forecast

Total Norwegian E&P spending from 2003 to 2018- NOK billion nominal. Source: UCube

NCS spending continues to grow The graph above shows total E&P spending levels for Norway split by Exploration, Operation and Capital Expenditure. For 2013 total spending is estimated to be NOK 266 bn, of which around NOK 180 bn is capex. Total spending is about 60% higher compared to 2010 levels. As illustrated in the production graph, about 50% of the production in 2020 will come from fields which are not yet producing. This indicates that significant investments are needed for new infrastructure. This is reflected in the spending chart by growth in the capex segment. In addition to new infrastructure, existing fields are expected to have high activity levels related to new drilling campaigns, modifications and maintenance going forward. Production costs are also expected to increase as development projects and discoveries are turned into output. Going forward, the exploration activity is estimated to stay at about NOK 35 bn annually. Together, the annual growth in spending from 2012 to 2018 is estimated to be 7%.

Forecast

Norway â&#x20AC;&#x201C; one of the best in the class Norway has had exceptionally good exploration results over the last three years. In terms of total offshore discovered volumes, Norway found 5.2 billion barrels of oil equivalent (boe) from 20102012. This makes Norway the third largest country in terms of discoveries, after Brazil with 16.2 billion boe and Mozambique with 11.7 billion boe, from 2010-2012. Exploration activity was also characterized by the high liquid content. Approximately 80% of the NCS discovered resources were liquids, translating into the highest liquid content of all countries worldwide. In addition, it puts Norway in second place in terms of discovered liquid volumes.

Offshore discovered volumes 2010-2012 for Top 10 countries by oil and gas- Mmboe. Source: UCube

Forecast

15 Stavanger, Norway (22)-23-24 October 2013

Visitors

Exhibitors

25.000

510 540

27.500

480

25.000

420

22.500

360

20.000

300

17.500

240

15.000

180

12.500

120

10.000

2010

2011

2012

2010

2013

3.000

2012

2013

90% increase since 2010

131% increase since 2010

Young Professionals

2011

Speed Networking

410

Booked stands

488 510

3.520

430

3.080

410

2.640

390

2.200

370

1.760

350

1.320

330

180

880

310

120

440

290 2010

2011

2012

2013

600% increase since 2010

480 420 360 300 240

2010

2011

2012

2013

33% increase since 2010

2013

22 available stands per 12.June 2013

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Forecast

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01/

Exploration

The Barents Sea exploration boom

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Photo: Ă&#x2DC;yvind Hagen, Statoil

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Into the north Exploration wells on the NCS 2013-2014 Before and after. Skrugard and Johan Sverdrup. The two major discoveries, respectively in the Barents Sea and the North Sea, will affect exploration activity on the Norwegian Continental Shelf in the next two years. The Norwegian Continental Shelf 2014s review shows that oil companies have plans to drill at least 15 wells in our northern sea area and 18 wells around the elephant discovery in the Utsira High.

Barents Sea Statoil is facing an extensive exploration campaign in the north. With Skrugard/Havis, the company managed to crack a code. Now the company aims to “gather information and further knowledge about the area.” Along with Total, Statoil plans to drill nine exploration wells in The Barents Sea in 2013. But Statoil is not alone in the Barents Sea. Eni is hunting a potential gas giant and Total will delineate it´s Norvarg discovery. In addition, Lundin, Repsol, OMV, Det norske and GDF Suez will drill operated wells in the area. Total’s Norvarg will also be delineated. Preliminary estimates suggest that the discovery contains between 10 and 50 billion cubic metres of recoverable gas, although 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 Sissel Eriksen, head of exploration at the National Petroleum Directorate (NPD). The results from these 15 wells will affect the further development in the Barents Sea over the next 10 - 15 years. How much oil is there really around Skrugard/Havis? Are there sufficient gas resources to build a new gas pipeline to the south? Or will it be a Melkøya extension? Will the new areas

meet the expectations? Only time will tell. The Norwegian SeaDevelopment of Aasta Hansteen will likely create new momentum for exploration in the Norwegian Sea. Centrica has already acquired three exploration licenses around Statoil’s new giant. “This is a basin that has proven to work, and we see the potential for large volumes in all of the blocks. It is a race to prove resources around Aasta Hansteen, so that one is ready to utilize the free capacity on the infrastructure when that time comes,” says exploration manager Steinar Meland at Centrica. Statoil has already drilled a duster at the Lovund prospect - a well that was characterized as a potential play opener located in the Norwegian Sea, off the coast of Sandnes Sea. And Shell is planning an exploration well Onyx South - where a good result can breathe new life into the company’s Linnorm development. “If we can increase the resource base, Linnorm can still be developed. Therefore, we will drill an exploration well in the license in 2013,” says Norwegian Shell’s upstream director, Monica

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Hausenblas. Wintershall is also approaching the selection of a development plan for Maria, and the company will drill prospects Rodriguez and Mjøsa, which could potentially provide valuable additional resources.

The North Sea, North Delineation of the Skarfjell (Wintershall) and Guarantiana (Total) discoveries is widely anticipated. Both have the potential to be stand alone developments. At Skarfjell, the first appraisal well has already been drilled.

The North Sea, South Here it is all about the Utsira High. With Johan Sverdrup and Edvard Grieg as guiding stars, Statoil and Lundin are at the forefront of this area. Overall 18 exploration and appraisal wells are planned in this area over the next two years. It will probably mean new opportunities for Sverdrup, Grieg and others. Otherwise, it is worth noting that Centrica is to delineate its Butch discovery further south in the North Sea.

“The appraisal well confirms the northern extension of the reservoir sands found in the discovery well and our estimated volume range of 60160 million barrels. The successful production test has also demonstrated reservoir deliverability. Our second appraisal well will evaluate field extension to the south, after which we will evaluate a possible development,” says Bernd Schrimpf, managing director of Wintershall Norge.

The discovery, named after the legendary train robber Butch Cassidy, may prove to be Centrica’s first operated development on the Norwegian Continental Shelf. Butch is estimated to contain between 30 and 60 million boe.

A second appraisal well is being planned in the southern part of the Skarfjell structure with implementation by mid-2014.

“There is a significant upside potential. We have secured a lot of acreage in the same area during the last APA rounds. This can become a tie-back or an independent development,” says exploration manager Steinar Meland at Centrica.

In addition, discoveries containing up to 400 million barrels of oil and 38 billion cubic metres of gas are still not scheduled for development in this area. This means that one successful well can be a catalyst for a larger area development. GDF Suez will also chase additional resources for it´s Gjoa platform and will be drilling the Ra/Tigris and Kon-Tiki prospects, inspired by Thor Heyerdahl, no doubt. Spring Energy, which in recent years has ensured it´s success through partner-operated wells, will also be taking the step up to be an operating explorer - with drilling on the Mantra prospect. The company hopes to find 367 million barrels of oil equivalent in this well.

Unopened areas Half the areas in which oil and gas are expected to be found on the NCS 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. 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.

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Recoverable resources

19%

Undiscovered resources

Recoverable resources as of 31 Dec 2012

Resources in discoveries

44%

Sold and delivered

19%

Resources in fields

Undiscovered resources

24%

Recoverable resources as of 31 Dec 2012

Resources in discoveries

Reserves

44% Total resources 2012: 13.6 bill Sm3 o.e. Sold and delivered

Total resources 2011: 13.1 bill Sm3 o.e.

Resources in fields

24% Reserves

Number of exploration wellbores started

70 Wildcat 60

Appraisal Number of exploration wellbores started

Appraisal

Forecast (total)

0 ‘81

‘82

‘83

‘84

‘85

‘86

‘87

‘88

‘89

‘90

‘91

‘92

‘93

‘94

‘95

‘96

‘97

‘98 ‘99

‘00

‘01

‘02

‘03

‘04

‘05

‘06

‘07 ‘08

‘09

‘10

‘11

‘12

‘13

Source: NPD

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Exploring the Norwegian Continental Shelf These are the exploration wells planned on the NCS in 2013-2014. - Discovery - Planned wildcat - Planned appraisal well - Dry well

Southern North Sea

Northe

ern North Sea

The Barents Sea

The Norwegian Sea

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vit and Goliat discoveries here.

Arctic drilling unit In addition to increasing its drilling activities, Statoil has created a technology road map to prepare for activities in even harsher Arctic areas.

West Hercules

The work on the future drilling unit is based on Statoil’s experience with developing specialised category rigs for the NCS.

Stepping up in the Arctic Statoil is stepping up its Arctic activities and will drill nine wells during a non-stop 20132014 Norwegian Barents exploration campaign. The company plans to meet development challenges here by trebling its Arctic technology research budget.

just like we’ve already done with Snøhvit.”

Statoil’s exploration experience in the Barents Sea is already extensive. And nine more Statoil-operated wells are on their way.

“These wells are time critical, as any additional resources will make the Skrugard development even more robust,” says Dodson.

“After our Skrugard and Havis discoveries we still see attractive opportunities here,” says Statoil exploration executive vice president Tim Dodson.

The campaign will then continue with the drilling of two-three wells in the Hoop frontier exploration area further north in the Barents in the summer of 2013. These will be the northernmost wells ever drilled in Norway.

“This is a less challenging area, as the Norwegian Barents Sea is one of the only Arctic areas with a year-round ice-free zone. We also see the possibility of utilising knowledge gained here for Arctic prospects elsewhere later on –

Some of the highlights include work to allow for cost-effective 3D seismic technology for exploration prospect evaluation in ice, and the continuing development of a tailor-made Arctic drilling.

Statoil will start drilling in Nunatak in the Skrugard area in December, and will drill and complete four wells in this area over a six-month period.

The 2013 Barents drilling campaign finishes in the most mature province of the Barents: the Hammerfest basin. Statoil will carry out growth exploration close to the existing Snøh-

The unit will be one that can operate in a wide range of water depths across the Arctic, and will involve integrated operations in drifting ice. Specifications are to include a management system to reduce ice impact, an optimised drilling package for faster drilling and increased rig availability, and solutions to ensure that the rig maintains its position. At present no robust solution for dynamic positioning dedicated for ice operation exists. “When we see a technology need, we try to fill the gap ourselves. We have now directed our strategic focus towards developing technology for exploration and production in ice. A new dedicated unit has been established to solve these challenges,” says Statoil technology, projects and drilling executive vice president Margareth Øvrum.

E X P L O R AT I O N

“

These wells are time critical, as any additional resources will make the Skrugard development even more robust. Tim Dodson, Statoil Exploration executive vice president

Tim Dodson. Photo:Trond Isaksen, Statoil

Capacity is key “We’ve secured a five-year contract for Seadrill’s West Hercules drilling rig. The rig is currently being prepared for Arctic conditions, and can be used to drill consecutively in the region for years to come,” Dodson says. Broad exploration experience in the Barents Sea and available rig capacity make Statoil well prepared for the 22nd licensing round on the NCS. Applications are due in early December, while the awarding of new licenses will take place in spring 2013. Seventy-two blocks in the Barents will be on offer. “The Skrugard discovery has reignited interest in the Barents. A number of major companies that had left the area will be looking to make their way back in. The competition will be fierce, but we’ve built up a strong track record here, and our application will reflect this,” Dodson says.

E X P L O R AT I O N

2012 reviewed Thirteen new discoveries were made on the Norwegian shelf in 2012; nine fewer than in 2011. Five of the discoveries were made in the North Sea, five in the Norwegian Sea and three in the Barents Sea. A total of 42 exploration wells were spudded and 41 were completed. 26 of the spudded wells are wildcat wells, and 16 are appraisal wells. In the North Sea, 29 exploration wells were spudded. Eight wells were spudded in the Norwegian Sea and five were spudded in the Barents Sea. The number of exploration wells spudded is down somewhat from last year. This is primarily due to rig access constraints, as well as a number of challenging drilling operations that have taken longer than planned. In 2013, the Norwegian Petroleum Directorate (NPD) expects about 50 exploration wells to be drilled.

Greatest activity in the North Sea In the Ekofisk area in the southern North Sea, Statoil has proven gas/condensate in wildcat well 2/4-21 King Lear in Upper Jurassic reservoir rocks. The discovery has high temperature and high pressure. This is considered to be an interesting find which could provide a basis for a future gas development in the area. There has been a great deal of exploration activity east of the Utsira High in the central part of the North Sea. Several appraisal wells have been drilled in blocks 16/2 and 16/5 on the Johan Sverdrup oil discovery, which was proven in 2010 in Upper Jurassic reservoir rocks. One of these, well 16/212, tested a new segment 10 kilometres north-west of the 16/2-6 discovery well. It encountered a 35-metre oil column, thus increasing the discovery’s resource base. Four oil discoveries were made in the northern part of the North Sea, the largest of which was made by Wintershall in well 35/9-7 Skarfjell in the Heather formation in the Upper Jurassic in the Gjøa area. It is located in an area where new discoveries have been made in recent years (Grosbeak and Titan), and it will be further delineated in the near future. Total proved oil in the Cook formation from the Jurassic Age in well 34/6-2 S, north-east of the Visund field. Furthermore, Statoil has made two minor discoveries in connection with producing fields. Well 30/6-28 S, which was drilled under the Oseberg field, discovered oil in the Statfjord formation, while well 33/12-9 S south of the Gullfaks Sør field proved oil in the Brent group with good reservoir quality.

“The King Lear results confirm our expectations and show once again that the Norwegian Continental Shelf still delivers high value barrels,” says Gro Gunleiksrud Haatvedt, senior vice president exploration Norway in Statoil. (Photo: Statoil)

E X P L O R AT I O N

Five discoveries in the Norwegian Sea In well 6201/11-3 in the south-western Norwegian Sea, Lundin has proven oil in thin sandstone layers in the Lista formation in the Paleocene, as well as in the Shetland group in the Cretaceous. There is great uncertainty associated with the size of the reservoirs in this discovery. Four discoveries were made in the more established exploration areas near the fields; three gas discoveries and one oil discovery. Mærsk made a minor oil discovery south-east of the Kristin field, in the Lysing and Lange formations in the Cretaceous. The reservoir rocks and reservoir quality were poorer than expected, and it is too early to make a resource estimate. Nearby, in well 6407/1-5 S, Wintershall delineated the 6406/3-8 oil/gas discovery proven in 2010. The well confirms the upper part of the previous resource estimate of 10-20 million standard cubic metres (Sm3) of recoverable oil and 2.5 billion Sm3 of recoverable gas. Further northwest of the Heidrun field, RWE Dea proved gas in well 6507/7-15 S «Zidane 2» in the Fangst group in the Jurassic, while BP made a gas discovery north of the Skarv field, in well 6507/3-9 S in the Lysing formation. The northernmost discovery was made north-west of the Norne field, by

Statoil in well 6607/12-3 in the Fangst and Båt groups in the Jurassic. This is a small gas discovery which requires further evaluation to clarify its resource potential.

Three discoveries in the Barents Sea Statoil discovered oil and gas in well 7220/7-1 Havis, near the Skrugard discovery in the Barents Sea. The well proved gas in the Stø formation and oil in the Stø and Nordmela formations in the Jurassic. Skrugard, proven in 2010, was also delineated by well 7220/5-1. Following this well, estimates place the size of the Skrugard discovery between 35-40 million cubic metres of recoverable oil equivalents. Two new discoveries were made further south, north-west of the Snøhvit field. Eni proved gas/condensate in well 7220/10-1 Salina in the Knurr formation in the Cretaceous, and in the Stø formation in the Jurassic. The plan is to drill an appraisal well here in the near future. The last discovery was made by Lundin in well 7120/6 -3 S, where oil was proven in the Knurr formation in the Cretaceous. This is a minor discovery and the resource potential has not yet been determined. (Source: The Norwegian Petroleum Directorate)

E X P L O R AT I O N

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E X P L O R AT I O N

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E X P L O R AT I O N

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E X P L O R AT I O N

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E X P L O R AT I O N

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RIG MARKET

02/

Rig Market

All sold out - 14 new rigs on their way

RIG MARKET

The drilling rigs on the NCS * All day rates are in US $

Bideford Dolphin

Borgland Dolphin

Bredford Dolphin

COSLInnovator

COSLPioneer

COSLPromoter

Type: Semi Owner: Dolphin Customer: Statoil Contracted to: Jan. 2017 Day rate: $418.000

Type: Semi Owner: Dolphin Customer: Rig Mangament Norway Contracted to: Sept. 2017 Day rate: $530.000

Type: Semi Owner: Dolphin Customer: Lundin Contracted to: May 2016 Day rate: $442.000

Type: Semi Owner: COSL Drilling Europe Customer: Statoil Contracted to: June 2020 Day rate: $335.000

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

Type: Semi Owner: COSL Drilling Europe Customer: Statoil Contracted to: June 2020 Day rate: $335.000

Deepsea Atlantic

Deepsea Bergen

Island Innovator

Maersk Guardian

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

Type: Semi Owner: Island Offshore Customer: Lundin Contracted to: March 2015 Day rate: Privat

Leiv Eiriksson

Maersk Giant

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

Maersk Innovator

Maersk Inspirer

Type: Jack Up Owner: Maersk Drilling Customer: ConocoPhillips Contracted to: March 2017 Day rate: Privat

Type: Jack Up Owner: Maersk Drilling Customer: Statoil Contracted to: Oct. 2014 Day rate: Privat

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

Type: Semi Owner: Ocean Rig Customer: Rig Mangament Norway Contracted to: March 2016 Day rate: $545.000

Type: Jack Up Owner: Maersk Drilling Customer: Talisman Contracted to: July 2015 Day rate: Privat

Maersk Gallant

Ocean Vanguard

Polar Pioneer

Rowan Gorilla VI

Type: Jack Up Owner: Maersk Drilling Customer: ConocoPhillips/ Statoil Contracted to June 2016 Day rate: $312.000

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

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

Type: Jack Up Owner: Rowan Drilling Customer: ConocoPhillips Contracted to: July 2017 Day rate: $350.000

Rowan Stavanger

Scarabeo 5

Scarabeo 8

Songa Dee

Songa Delta

Type: Jack Up Owner: Rowan Drilling Customer: Talisman/Lundin Contracted to: Feb. 2014 Day rate: $350.000

Type: Semi Owner: Saipem Customer: Statoil Contracted to: Sept. 2017 Day rate: $399.000

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

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

Type: Jack Up Owner: Maersk Drilling Customer: Lundin Contracted to: July 2014 Day rate: Privat

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

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

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

Type: Semi Owner: Aker Oilfield Services Customer: Statoil Contracted to: cancelled Day rate: cancelled

Statoil CAT J 1+2

Stena Don

Transocean Arctic

Transocean Barents

Transocean Leader

Transocean Searcher

Type: Jack Up Owner: Oseberg/Gullfaks licence Customer: Statoil Contracted to: March 2024 Day rate: Private

Type: Semi Owner: Stena Drilling Customer: Statoil Contracted to: March 2017 Day rate: $400.000

Type: Semi Owner: Transocean Customer: Statoil/Rig Management Norway Contracted to: Aug. 2015 Day rate: $418.000

Type: Semi Owner: Transocean Customer: Det norske Contracted to: June 2014 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: June 2015 Day rate: $394.000

Transocean Spitsbergen

Transocean Winner

West Alpha

West Elara

West Epsilon

West Hercules

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

Type: Semi Owner: Transocean Customer: Lundin/Marathon Contracted to: Jan. 2015 Day rate: $487.000

Type: Semi Owner: Seadrill Customer: ExxonMobil Contracted to: July 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: Dec. 2017 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: July 2014 Day rate: $609.000

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

Type: Jack Up Owner: Maersk Drilling Customer: Total Contracted to: Sept. 2018 Day rate: $377.000

Type: Jack Up Owner: Maersk Drilling Customer: Det norske Contracted to: Jan. 2020 Day rate: $377.000

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

RIG MARKET

Fourteen rigs in line In the near future the number of rigs will grow quickly in Norway. In this sections we provide the list of rigs with confirmed contracts for work in Norway with start up in the 2013-2015 period.

NOK 5,2 billon ConocoPhillips has entered into two agreements with Rowan Companies with a total value of at least NOK 5.2 billion (US $852 m). The first contract is for Rowan Norway. The rig started operations mid January 2013. The contract extends over three and a half years, but the agreement also includes options for a total of two additional years. The second rig is Rowan Gorilla VI, which starts its three and a half yearcontract from Q1 2014. The rig has the same day rate as Rowan Norway. In total Rowan has two rigs heading for Norway. Lundin has signed a contract for lease of Rowan Viking. This contract starts up in the second quarter 2014, and the firm part ends November 2016.

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 CAT D-rigs from Songa Offshore. These will be delivered in 2014 and 2015. Towards the end of 2015 the first CAT B rig, ordered from Aker Oilfield Services is expected to be finish. In addition there are to be at least two CAT J rigs, 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 bn (US $623 m) with an expected duration for 1,070 days. The contract is for 15 wells, and started early 2013. In addition there are three options, each of six wells. Rowan Norway is being leased by ConocoPhillips until summer 2013.

RIG MARKET

Island Innovater is drilling for Lundin on Johan Sverdrup. Photo: Odfjell Drilling

Another two Jack Ups The largest jackup competitor on the NCS, Maersk Drilling, currently has three rigs under construction. The first rig, XL Enhanced I has received a Letter of Award from Total E&P Norge. The rig will be used for drilling the demanding and complex wells on the Hild field development in the Norwegian North Sea. The firm contract duration is for four years and the agreement also includes four oneyear options. The contract value for the four-year firm period is approximately US $550 m. The contract is expected to commence latest by third quarter 2014 upon arrival of the rig in the Norwegian North Sea from the 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 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 US $413 m. The XL Enhanced III is chartered by Statoil. They are planning to use the rig on the Dagny field in the North Sea.

New Seadrill Jack Up Seadrill has a new jackup under construction at Jurong Shipyard in Singapore, named West Linus. The rig, which will be completed in the third quarter of 2013 and will cost around NOK 2.9 bn (US $476 m), 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 bn (US $624 m). This has a five year duration and options for another five. With delivery approaching, Island Innovator still had no contract. But after the rig was converted into a conventional drilling rig and Odfjell Drilling took over the management things improved. Lundin awarded the rig a contract for drilling of 12 wells from the second quarter of 2013.

RIG MARKET

14 rigs in line Rigg

Type

Owner

Customer

Contract Start

Rowan Norway

Jack Up

Rowan Companies

ConocoPhillips

360.000

Island Innovator

Semi

Island Offshore

Lundin

Rowan Gorilla VI

Jack Up

Rowan Companies

ConocoPhillips

350.000

Leiv Eiriksson

Semi

Ocean Rig

Rig Management Norway

560.000

Maersk Enhanced I

Jack Up

Maersk Drilling

Total

376.000

Rowan Viking

Jack Up

Rowan Companies

Lundin

350.000

West Linus

Jack Up

Seadrill

ConocoPhillips

367.000

Maersk Enhanced II

Jack Up

Maersk Drilling

Det norske

377.000

Songa Equinox

Semi

Songa Offshore

Statoil

428.000

Songa Endurance

Semi

Songa Offshore

Statoil

428.000

Songa Encourage

Semi

Songa Offshore

Statoil

450.000

Songa Enabler

Semi

Songa Offshore

Statoil

450.000

Statoil CAT J1

Jack Up

Not awarded

Statoil

No contract

Statoil CAT J2

Jack Up

Not awarded

Statoil

No contract

2013

Rowan Gorilla VI

Day rate/USD

2014

2015

Leiv Eiriksson

RIG MARKET

Photo: Øyvind Sætre, Westcon

Golden times for the rig yards The three major operators battle for billions, the Coast Center Base (CCB), Bergen Group Hanøytangen and the Westcon Yard in Ølen. The maintenance market for rigs is booming and the bonanza looks like it will never end. And it is expected that activity will reach an all time high for the classification of rigs on the Norwegian Shelf next year.

Chasing the available There are mainly three shipyards vying for the 13 big rig jobs we have identified for 2014. This is the Coast Center Base (CCB), Bergen Group Hanøytangen and the Westcon Yard in Ølen. “We know that the classification sector is going to be a large market next year and we are working to secure some of the contracts that are to be awarded. It means that we are preparing ourselves for winning any current missions,” says managing director Yngve Thusen at Bergen Group Hanøytangen.

The largest With so many rigs due to be re-classified in the course of a year, the shipyards must be able to handle several rig projects at the same time. All three shipyards can do this. Thuen in Bergen Group highlights his company’s shipyard dry dock as an advantage in the race for rig projects. “We have Northern Europe’s largest dry dock, and it gives us the oppor-

Malivn Eide

RIG MARKET

Safe Bristolia and Leiv Eiriksson at CCB. Photo: John Økland

Deepsea Atlantic and Transocean Winner at Hanøytangen.

RIG MARKET

We need to be ahead and keep the steam up Malvin Eide, manager rig repairs Westcon Yards

tunity to work from three sides of the rig at the same time. In addition, we have two quays, where the depths are 17 metres and 20 metres.”

market coming now. This includes the facilities for the largest jackups entering the Norwegian Continental Shelf.

In recent years, Bergen Group has invested significant sums in Hanøytangen with more to come. However Thuen does not want to give any precise figures. Recently there were two rigs in the shipyard. Accommodation rig Regalia was classified, while the Island Innovator underwent preparation for its first assignment after delivery.

“We now have the ability to accept both the smallest and the largest rigs of this type. Previously, we have had work on both Maersk rigs and Seadrill rigs. We need to be ahead and keep the steam up,” says Eide.

Rigs in line at Ølen At Westcon Yard in Ølen, activity has peaked in recent months. Work has been performed on the West Hercules, Leiv Eiriksson and West Alpha, and in addition, the re-classification of both the Transocean Searcher and West Phoenix has been carried out. Thus, 2013 is also very busy for Westcon, even though an activity peak is still to come next year. “We are three shipyards which are doing this and I think we’re going to be able to perform all these missions next year. At the most, we alone have run five projects here and a sixth in Las Palmas,” recalls Westcon’s manager for rig repairs, Malvin Eide. He points to the shipyard’s benefits which are both good dock facilities and a proven ability to complete projects on time and on budget. When Deepsea Bergen was in the dock there the job was completed in 28 days - two less than originally estimated.

Get ready The yard has invested about NOK 600 m (US $98 m) in Ølen to meet the

Using experience Also at the third yard, CCB, they are ready for a significant increase in the number of rig jobs. Ronny Haufe, project director here, says he believes the shipyards will be able to carry all rig projects. “The existing shipyards will be able to handle this, considering the experience we have in running parallel projects. Although we have recently had two Songa rigs, this provides valuable learning in relation to enabling constant activity,“ he says.

Three simultaneous CCB has also spent considerable sums on its yard, including a new crane costing NOK 50 m (US $8.21 m) and other improvements which in total amounted to several hundred million kroner during 2012, according Haufe. “We want to create complete solutions on multiple quays and we can have three units simultaneously. When the other shipyards can do this too, we will be able to handle all maintenance and upgrades the next years,“ he concludes.

RIG MARKET

NOK 30 billion of drilling contracts Last year Statoil awarded contracts for drilling services on as many as 18 fixed installations in Norway. The total contract values are worth NOK 30 billion (US $4.92 bn), 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,” said Margareth Øvrum, Statoil’s executive vice president for technology, projects and drilling business areas. 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, now former senior vice president for drilling and wells.

RIG MARKET

Photo: Ă&#x2DC;yvind Hagen, Statoil

RIG MARKET

Norway platform drilling: winners and losers The contract situation before 2012’s NOK 30 bn awards: 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:

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

“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, KCA’s 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.”

Remaining optimistic

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 loser this time. Archer lost three contracts, all on Gullfaks installations, and kept the Statfjord contracts.

Despite losing three of their six installations, Archer remain three of their six installations but the company remains optimistic about the future and say the new deal underlines the good relationship it enjoys with Norway’s dominant oil company.

Half the market

“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,“ said Kjetil Bjørnson, president and general manager North Sea Region.

For Odfjell Drilling the win has an estimated annual value of NOK 1 to 1.5 billion. In total this could end at NOK 15 bn - 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,” said CEO Simen Lieungh.

Have cemented our position To KCA Deutag the revenue for the initial contract period is NOK 4.1 bn, excluding possible options.

Photo: Arne Reidar Mortensen, Statoil

RIG MARKET

Rig market remains tight Drilling is key to increased production, stresses rig analyst David Bhatti at Nordea Market. 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 drilling 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 most lucrative objectives of recent years has 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 A total of 14 rigs are now in line to enter the NCS during the years 2013-2015, while 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 a given that these rigs will work in Norway upon delivery since the international market for ultra-deepwater rigs is expected to remain under-supplied in the near future. Contracting of harsh-environment jackups has not shown the same trend and our estimates suggest that the growth in jackup demand will be higher than growth in floater demand. Hence we expect the Norwegian market to remain tight in terms of supply and demand in the near future.

Photo: Ole Jørgen Bratland, Statoil

Huge investments The largest jackup operator on the NCS is Maersk Drilling. Today Maersk is operating six rigs in Norway, but it has three harsh environment jackups under construction. These are, Maersk says, the most advanced jackups ever - at a cost of US $650 m 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 US $400,000 level, profitability is lower than you can expect from investing in ultra-deepwater capacity. That being said, longer contracts, fewer market competitors and a more stable rate environment have caught the interest of some rig companies, leading to investments in this segment,” says rig analyst David Bhatti.

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. In 2012 West Navigator won a new contract at US $590,000 per day. And as late as same summer the 1986-built West Alpha received a letter of intent with a day rate at US $ 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 US $600,000 mark, but this will probably be temporary as supply of harsh-environment floaters is expected to increase going forward,” David Bhatti predicts.

A top market sold out “We expect that 2013 will be just like 2012, the next agreements entered into will provide strong rates and long duration,” says rig analyst Frederik H. Lunde at Carnegie. In particular he sees limitations in the supply of rigs that can drill in the Barents Sea. This is proved by the fact that Statoil obtained Seadrill’s West Hercules to Norway for their nine-well drilling program in the North. The rig must not only be approved for the Norwegian Continental Shelf, but also undergo major upgrades in terms of being winterised. “The rig market in Norway will remain as we have seen in recent years. We will not see any movement, but rather see that it will be completely sold out in a top market,” says Lunde.

RIG MARKET

The 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% recovery from fixed installations and 47% from subsea wells. For comparison, many other countries manage recovery rates of between 35 and 40%. This year Statoil passed the historical 50% recovery figure totally, but still 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 unveiled in 2011 and many were concerned about the ownership model that was outlined for the new CAT J rigs, where Statoil has said they want the licensees 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. However, 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 Nor-

RIG MARKET

wegian Continental Shelf in the coming years,” Jacobsen comments on the question of how he perceives 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 The estimated contract value for the new D rigs are NOK 7.5 billion (US $1.23 bn) per rig for a fixed period of eight years, including four threeyear options per rig. Songa Offshore now has a work-order on the four rigs worth almost NOK 29 billion (US $4.76 bn). The day rate for the first two rigs is US $428,000. Rigs three and four are slightly higher – at about US $450,000. 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 these rigs are huge building blocks for Songa and they may be 80-90% repaid during the fixed contract period.

The CAT B rig Statoil and its partners have also awarded Aker Oilfield Services an eightyear contract with options for three times two years for the category B service rig. The estimated value of the contract is US $1.9 bn. 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 begin service during 2015.

Reducing rig costs by 60% 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% by utilising a LWI vessel instead of a conventional rig, they claim. These contracts are worth a total of NOK 9.4 billion (US $1.54 bn). 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

Norwayâ&#x20AC;&#x2122;s new rig types CAT A: This is a vessel for light well intervention. Used for light wire line operations in subsea wells. It can also be used to plug wells.

The CAT A rig. Illustration: Statoil

CAT B: This is a fit for purpose rig for well intervention and sidetrack drilling through production tubing - so-called- through tubing drilling and completion. For use in wire line operations, coiled tubing, plugging of wells and sidetrack drilling. The well services will be done through existing subsea christmas trees. Contract status: a contract was awarded to Aker Oilfield Services for eight years, with options for six years, but later cancelled. The value of the contract was NOK 11 billion (US $1.80 bn).

CAT C: This is an ordinary drilling rig that can be used for all types of operations.

The Cat B rig. Illustration: Statoil

Contract status: The rigs are currently leased by Statoil in Norway.

CAT D: A 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. Contract status: Songa Offshore has won four such units for a total value of NOK 29 billion (US $4.76 bn). 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.

CAT J: 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.

The Cat J jackup. Illustration: Statoil

Contract status: In May Statoil awarded a contract for the first CAT J-rig. Noble Drilling won the contract for CAT J 1 which will be drilling on the Mariner project in UK. I June the license partners of Gullfaks and Oseberg Area Unit annonced that they have acquired two CAT J rigs. Samsung Heavy Industries Co. Ltd. and operator KCA Deutag Drilling Norway AS have been awarded the contracts for construction and operation of the rigs. Operations are expected to start in 2016-2017 and the rigs will cost US $650 m each. Source: Statoil

The Cat D (left) and Cat J (right). Illustration: Statoil

RIG MARKET

Photo: Helge Hansen, Statoil

Rig crew shortages threaten Norway drilling New offshore drilling rotation schemes will reduce recruitment and create higher turnover among rig workers. In the next few years, the number of rigs in Norway will increase from the current 36 to 51 by 2015. That means thousands more qualified rig workers will be required.

A dead end Oil industry union SAFE is now warning against those calling for quick fixes like changing rotation schemes from 2-4 to 2-3. “This is a dead end and will only help to undermine the recruitment industry. Such changes will make it less attractive to search for jobs on the rigs and will only lead to high turnover,” says Roy Erling Furre, vice president in SAFE. He believes Norway needs to go the other way and says that it’s good we have good schemes, so as to attract the necessary workforce and maintain safety on the rigs.

Years of experience “It takes many years to build the necessary experience and reflexes, which we are totally dependent upon for safety offshore. The oil industry cannot afford a major accident - it will set the industry back several decades,” Furre says. Under Mobile Facilities Conference in Bergen, Furre mentioned several incidents with major accident potential in recent years. The events at the Floatel Superior and Scarabeo 8 in particular worries the SAFE boss.

RIG MARKET

A higher percentage A Rig report that came with suggestions about new rotation schemes was published in 2012 by an expert group appointed by the Ministry of Petroleum and Energy (MPE). The report concluded that there are two factors that have limited the number of rigs in Norway and that keep costs high. High costs for rigs to get them approved for operations in Norway and working hours for offshore personnel in Norway The most controversial is undoubtedly the proposal to change the rotation schemes from 2-4 to 2-3 and thus provide offshore workers with a working week of 33.6 hours. The Expert Group notes that the Norwegian working arrangement constitutes 63% of the difference in personnel costs for operating a rig in the UK compared to Norway. With 2-2 rotation in the UK and 2-4 in Norway the difference in cost is calculated at US $32,000 per day. Changing to a 2-3 rotation system in Norway will reduce this number. At one year, the cost is cut by $6 million per rig. With the fleet in 2015 as a basis, up to $345 m could be saved per year.

Potential savings of US $172 bn The MPE rig report also highlights measures to reduce drilling costs and that a saving of 30% can mean huge gains with a direct cost impact over time of US $86 billion. In addition, there are non-predicted effects, which may exceed this figure. Thus, the total gain of 30% is estimated to exceed US $172 bn. “We ask ourselves questioning why one would save US $172 bn and believe it is entirely hypothetical. To introduce 2-3 or 2-2, which has also been mentioned, will not bring anything good with it. We need to look at other solutions that ensure both safety and recruitment ahead,” stresses Furre. He lists the following possible solutions Ensure steady activity Ensure long-term contracts Increasing standardisation Long-term recruitment Avoid redundancies Better cooperation between operators to ensure the right rig at the right time

How good are the investigators? There is very great interest in working offshore. Thousands of applicants are coming in per vacancy. Still, Furre is not convinced that it is easy to find good people quickly. “I fear it is often the same as those seeking jobs in various companies, but we don´t have some real numbers on this. One must also wonder about the competence of these hold,” he adds. Ensuring recruitment while avoiding the need that people jump from one rig to another are therefore two important success factors, Furre concludes.

RIG MARKET

Bideford Dolphin

AoC on the NCS 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 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 NCS. Securing an AoC is essential, however, if a mobile facility registered in a national register of shipping, is to work on petroleum activities, it is mandatory that it has the following facilities: Drilling facilities Living quarters facilities Facilities for production, storage and offloading Intervention vessels which are to conduct petroleum activities An AoC encompasses technical matters, relevant parts of the applicant’s management system, analyses performed, maintenance programmes and upgrading plans.

RIG MARKET

These are the rigs with AoC on the NCS West Navigator (Seadrill) 19.9.2000

Island Wellserver (Island Offshore) 3.4.2009

Deepsea Bergen (Odfjell) 14.12.2001

Songa Dee (Songa) 5.6.2009

West Alpha (Seadrill) 31.12.2001

Songa Trym (Odfjell) 5.6.2009

West Epsilon (Seadrill) 14.2.2002

Songa Delta (Odfjell) 5.6.2009

Mærsk Giant (Maersk) 15.2.2002

Deepsea Atlantic (Odfjell) 8.7.2009

Stena Don (Stena) 19.3.2002

Transocean Barents (Transocean) 10.7.2009

Mærsk Gallant (Maersk) 1.8.2002

Transocean Spitsbergen (Transocean) 10.7.2009

Mærsk Guardian (Maersk) 1.11.2002

Regalia (Prosafe) 10.7.2009

Mærsk Innovator (Maersk) 7.5.2003

Rowan Gorilla VI (Rowan Drilling) 17.11.2009

Scarabeo 5 (Saipem) 16.5.2003

COSLRival (COSL Drilling) 28.5.2010

Transocean Searcher (Transocean) 19.12.2003

Island Constructor (Island Offshore) 23.9.2010

West Venture 30.1.2004

Floatel Superior (Floatel International) 22.12.2010

Polar Pioneer (Transocean) 6.5.2004

COSL Rigmar (COSL Drilling) 31.3.2011

Ocean Vanguard (Diamond Offshore Drilling) 2.7.2004

COSL Pioneer (COSL Drilling) 17.6.2011

Transocean Arctic (Transocean) 20.7.2004

Maersk Reacher (Marsk) 15.7.2011

Eirik Raude (Ocean Rig) 15.9.2004

Haven (OSM) 26.7.2011

Borgland Dolphin (Dolphin) 30.9.2004

West Elara (North Atlantic Norway Ltd) 13.12.2011

Bideford Dolphin (Dolphin) 30.9.2004

Rowan Stavanger (Rowan Drilling Norway) 27.3.2012

Transocean Leader (Transocean) 16.12.2004

COSL Innovator (COSL Drilling Europe AS) 30.3.2012

Transocean Winner (Transocean) 4.8.2006

Scarabeo 8 (Saipem) 3.5.2012

Island Frontier (Island Offshore) 31.10.2006

Transocean Spitsbergen (Transocean Offshore Ltd NUF) 26.10.2012

Safe Scandinavia (Prosafe) 13.4.2007

Transocean Barents (Transocean Offshore Ltd NUF) 26.10.2012.

Bredford Dolphin (Dolphin) 28.6.2007

COSLPromoter (COSL Drilling Europe AS) 6.11.2012

Mærsk Inspirer FPDSO (Maersk) 25.1.2008

Songa Delta (Songa Management AS) 8.11.2012

Petrojarl 1 (Teekay) 30.4.2008

Rowan Norway (Rowan Drilling Norway AS) 21.12.2012

Petrojarl Varg (Teekay) 30.4.2008

West Hercules (North Atlantic Drilling) 21.12.2012

West Phoenix (Seadrill) 13.6.2008

Songa Trym (Songa Management) 15.2.2013

Leiv Eiriksson (Ocean Rig) 11.7.2008

RIG MARKET

Photo: John Økland

RIG MARKET

Ten rigs needed in the Barents Sea The rig demand in the north will grow quickly. Drilling rigs on the Norwegian Continental Shelf will soon be heading to the north and take on the Barents Sea in the coming years. This will happen gradually, but in a few years we could see the need for up to ten rigs in this region.

Exciting times “The need for rigs in the Barents Sea is the first and foremost rather uncertain, because so much is driven by exploration and expectations of discovery. Much of the activity in the medium and longer term will be a function of the activities we now undertake, so this is a very exciting time,” says Lars Erik Nicolaisen, partner in Rystad Energy. He assumes that there will be a need for about three or four rigs until 2016, then, four to five until 2020. “Then it’s really an open question, but with the Barents Sea’s potential, one can certainly envision a scenario with a need for up to ten rigs in the region,” he comments.

Covering the demand And while Norway has thirsted for more rig capacity in recent years, it appears that growth in the fleet will be able to meet the growing demand in the future. “Today’s rig fleet, including growth which is contracted for the next few years will be sufficient to supply the demand growth that we see towards 2017. We will have around 50 rigs working on the Norwegian Continental Shelf. Of these, around 11 are suitable for work in the Barents Sea. Thus, we believe that this fleet will be able to meet demand that comes in the Barents Sea,” he says. Oil companies will also benefit from moving rigs in and out of the region during the contract period, depending on where they have drilling activities.

Wells queued up There are a handful of rigs that have significant drilling programmes booked into the Barents Sea for 2013 and beyond. Scarabeo 8 will drill productions wells on the Goliat development for Eni and West Hercules will drill nine exploration wells for Statoil. In addition, the Transocean Barents’ drilling programme will include the Byrkje/Gloppen prospect for GDF Suez. The Leiv Eiriksson drilled Total’s Norvarg appraisal and Statoil’s first CAT D rig is expected to carry out the Johan Castberg formerly Skrugard/Havis - drilling.

Lars Erik Nicolaisen is partner in Rystad Energy: “We will see tailored rigs working side by si

ide with older rigs in Norway,” he says.

RIG MARKET

Transocean Barents is one of the top class rigs able to drill in the Barents Sea. Photo: Aker Drilling

Polar Pioneer is the rig which made the Skrugard discovery that started it all. Photo: Statoil

According to Nicolaisen, eight of the 11 rigs are already winterised, while rigs like Transocean Leader, Deepsea Atlantic and West Alpha are not yet. Nicolaisen does not believe these rigs will be upgraded before any contract is signed, either.

Selects custom rigs In recent years a major renovation of the fleet in Norway has been launched. Both large and small units have found their place in this fleet. “In the past three years we have received some new rigs to modernise our fleet, both deepwater rigs and large jackups. I think these will work side-by-side with the older rigs we already have. The third element we will see is more tailor-made concepts for Statoil, CAT B, D and J – and also the COSL rigs are good examples. I think this last group will show its suitability for the Norwegian Continental Shelf, and to the extent that we will see a change in the fleet. This is probably the biggest change we will see; a fleet that is more tailored to the ocean depths and conditions that they actually are working in. This is also an issue for the largest player, Statoil, which has stressed this in recent years,” underlines Nicolaisen.

RIG MARKET

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RIG MARKET

COSL DRILLING EUROPE COSL Drilling Europe AS (CDE) is located at Forus, Norway, and was established in May 2005 under the name Offshore Rig Services. The company became a wholly owned subsidiary of Awilco Offshore ASA in January 2007. In September 2008 China Oilfield Services Limited (COSL) took over all the shares in the company.

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period for each of these rigs is 8 years plus 8 x 1 year options. Start-up date for these contracts was in Q4 2012 for COSLInnovator and Q2 2013 for COSLPromoter.

Currently CDE has one semi submersible drilling rig under construction at CIMC Yantai Raffles Shipyard in China. This drilling unit will be delivered from the yard in Q3 2014, and ready for operations in European waters in Q2 2015.

COSL Drilling Europe has a mission to build and operate fit for purpose semi submersible drilling units and accommodation units and provide world class offshore drilling operations anywhere in the world. We will provide exploration, exploitation and increased oil recovery operations in offshore regions anywhere our clients may require, and be the preferred supplier of these services.

The COSLPioneer started its operations for Statoil on NCS in August 2011. This new build state of the art semi-submersible drilling unit has already proved to be a very efficient and safe drilling unit delivering first class work for its client. The drilling units COSLInnovator and COSLPromoter both have firm contracts with Statoil for the Troll Production Licence. The fixed contract

The NCS has one of the worldâ&#x20AC;&#x2122;s strictest regulatory regime when it comes to technical requirements for the units and corresponding requirements for the onshore organization.

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Westcon Yard Ølensvåg September 2012. Rigs: «COSLPromoter», «Deepsea Bergen» and «West Alpha».Ships: «Viking Avant» and «Folgefonn.» HElgElAND

WESTcon is a leading provider of the best and most innovative solutions, services and products within onshore and offshore, energy and maritime industries. Yards Westcon Yard actually consists of four modern shipyards, each of which are equipped to carry out the most demanding vessel and rig projects. We also deliver offshore, both TopSide and Subsea. The defining traits of Westcon Yard are efficient mobilization of personnel and resources, and the ability to always complete projects on time. Lifting Techniques Westcon Løfteteknikk is Norway’s leading provider of cranes and heavy-lift services including access techniques, control and certification, courses and training Power and Automation Westcon Power & Automation offers solutions that are expertly tailored to each customer’s needs. We have highly qualified employees and resources within installation and commissioning.

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03/

Field development

A Statoil giant in every sea

FIELD DE VELOPMENT

Developing a new giant Early estimates indicates that Johan Sverdrup can produce between 300,000 and 500,000 barrels per day in 2020. The licensees of Norway’s 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. With a forecast producing life of more than 30 years, the production time frame for this North Sea find extends to 2050. The field will be developed in several phases, with one field centre and the possibility of multiple independent platforms and/or subsea tie-backs for optimal drainage of the reservoir. It is not yet been decided how many installations there will be in the end. There will be offshore processing and oil exports to either Sture and Mongstad, and power from shore. A plan for development and operation (PDO) of Johan Sverdrup is due to be submitted to the Ministry of Petroleum and Energy in the fourth quarter of 2014. Statoil will serve as operator until an investment decision is taken and the PDO submitted, and the project team is located in Stavanger with participation from the partners. “Our main job now is to narrow down the volume range and uncertainty, and to study solutions with the aim of achieving a flexible development based on standard technology,” says Øivind Reinertsen, Statoil’s project director for Johan Sverdrup. “We have long experience with solutions above the seabed in this area and these water depths, including current developments such as Gudrun, Edvard Grieg and Draupne.” However, a great deal will depend on sub-surface conditions. The discovery extends over 180 square kilometres, with variations in the thickness of the oil-bearing strata.

Biggest Johan Sverdrup is one of the largest discoveries made on the Norwegian Continental Shelf (NCS) since the mid 1980s, and will be among the biggest job providers in future years. Early estimates indicates that the field can produce between 300,000 and 500,000 barrels per day in 2020, representing about 10% of production on the Norwegian Continental Shelf as of today. The project has a high priority among the other licensees – Lundin, Petoro, Det Norske and Maersk Oil – and work on it will draw on the experience and knowledge of the whole partnership. Once developed with several installations, the field will be a new hub for processing and transport on a par with the other giants on the NCS.

Facts about Johan Sverdrup Johan Sverdrup comprises two discoveries which form one field Location: in the North Sea, 140 kilometres west of Stavanger The water depth is 110 metres, the reservoir is 1,900 metres deep The plan for development and operation (PDO) is due to be submitted in the fourth quarter of 2014 Production is scheduled to start in the final three months of 2018 The field is likely to continue producing until 2050

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A 280-kilometre pipeline The Skrugard and Havis assets will have a common infrastructure. Production will be tied in to a semi-submersible floating installation through a subsea production system located in about 380 metres of water. The production is estimated at almost 200,000 barrels of oil equivalent per day. Oil will be transported through a 280-kilometre pipeline from Johan Castberg to Veidnes outside Honningsvåg. It will be piped directly to an oil storage facility and stored in two mountain caverns. The oil will be sent from there in a pipeline to the quay for transportation by tankers. Between 50 and 100 crude tankers are likely to call at the terminal each year. “This is part of the ambition of making Northern Norway the country’s next big petroleum region. We are pleased to have selected a good concept and hope that this may form the basis for a valuable partnership with local authorities and industry also in the future,” Michelsen says. Between 2011 and 2012 Statoil and its partners discovered Skrugard and Havis, which are two independent structures within the same license and together comprise the Johan Castberg field development which has a proven 400-600 million barrels of recoverable oil in this area.

Extensive exploration Statoil’s exploration campaign will consist of nine new prospects in the Barents Sea to be drilled during 2013-2014. The campaign will start in the Castberg area, where four new prospects will be drilled. “We have evaluated the neighbouring area associated with the 22nd licensing round, and see upside potential in the license. We see additional opportunities beyond the four planned wells. Because of this potential it is important to have a concept which also ensures the necessary flexibility to tie in future discoveries to the Veidnes oil terminal,” Michelsen says.

The next big petroleum region Statoil and its partners have chosen a development concept for the Johan Castberg field – formerly known as Skrugard and Havis - in the Barents Sea.

Facts about Johan Castberg - postponed Location: Barents Sea blocks 7219/9 and 7220/4,5,7, about 100 km north of Snøhvit, 150 km from Goliat and nearly 240 km from Melkøya. The water depth is 360-390 metres, 7 km between Skrugard and Havis.

The concept includes a floating production unit with a pipeline to shore and a terminal for oil from the Johan Castberg field at Veidnes outside Honningsvåg in Finnmark. The field is scheduled to come on stream in 2018.

The discovery: Skrugard April 2011, Havis January 2012

“The decision to bring Johan Castberg oil ashore at Veidnes is a key element of the further development of Norwegian oil and gas industry. This may spark off a new industrial era. This concept choice will facilitate further exploration and help make any future discoveries profitable,” says Øystein Michelsen, executive vice president for development and production Norway (DPN).

Timeframe: The ambition is to finalise the development concept in 2013, deliver a PDO in 2014 and start production in 2018. Castberg will contribute considerable volumes in 2020.

Volumes: Preliminary volume estimates are between 400 – 600 million barrels of oil. This is considered to be a prospective area.

Investments: Not ready until an investment decision is made Partners: Statoil operator (50%), ENI 30%, Petoro 20%

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Norway´s first Spar Statoil and partners will build the world’s largest and the first spar platform for the Norwegian Continental Shelf at the Aasta Hansteen field. “We are very pleased to take another step in the development of Norwegian Sea activities together with our partners. Aasta Hansteen will be the first deep-water development in the Norwegian Sea,” says Øystein Michelsen, Statoil’s executive vice president, development and production Norway. “At the same time this opens for the tie-in of existing and new discoveries. The development may generate substantial ripple effects in the north,” says Michelsen. The Aasta Hansteen field will be run from Harstad, Statoil’s new Operations North organisation. The supply base will be located in Sandnessjøen and the helicopter base in Brønnøysund. The planned field development includes a spar platform, which will be the first such installation on the Norwegian Continental Shelf - a floating installation consisting of a vertical column moored to the seabed. The installation features conventional topsides with processing facilities. The risers transporting the gas from the seabed to the platform and further to Polarled will be pure steel which will also be the first of its kind on the NCS. The hull will be fitted with storage for condensate, which will be loaded to shuttle tankers at the field. The field is located outside established infrastructure in 1,300 metres of water. Investment in the Aasta Hansteen development are estimated at NOK 32 billion (US $5.25 bn).

Open for gas in the Norwegian Sea Polarled is a new 480-kilometre gas pipeline from Aasta Hansteen to Nyhamna in Møre and Romsdal county, facilitating development of Aasta Hansteen and other fields in the Norwegian Sea. “Polarled will open a new region and facilitate further exploration activities and development of future discoveries in the area. This will contribute substantially to maintaining the role of the Norwegian Continental Shelf as a long-term, reliable gas supplier,” says Statoil’s executive vice president for mid- and downstream operations, Eidar Sætre. Aasta Hansteen Spar illustration

The project includes expansion of the Shell-operated gas plant at Nyhamna. A separate pipeline between Polarled and the Kristin platform will connect new infrastructure to existing infrastructure on Haltenbanken (Åsgard Transportation). In addition preparations will be made for the tiein of existing and future discoveries in the area.

Deepest in the world The 36-inch pipeline will be located 1,300 meters below sea level at the deepest. No other oil and gas pipeline of this dimension has ever been laid this deep before. Investment in the Polarled project is estimated at NOK 25 billion (US $4.09 bn).

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Øystein Michaelsen - Statoil exec vice president of production and development Norway

Ripple effects and opportunities Statoil aims to create local and regional economic ripple effects from the project. Together with the supplier network PetroArctic Statoil identified the opportunities for competitive deliveries from North-Norwegian communities and other bidders in the supply industry at an early stage of the project. During 2013 Statoil was to award the main contracts for topsides, subsea facilities, pipeline, pipe-laying, marine operations and drilling at Aasta Hansteen. There will also be contract opportunities when the field comes on stream.

facts about aasta hansteen Gas discovery in 1,300 meters of water in the Vøring area, 300 kilometres from land. Estimated recoverable volume: 47 billion standard cubic metres of gas The gas is dry and has a low CO2 content The closest installation - Norne - is 140 kilometres away The discovery was made in 1997 On plateau Aasta Hansteen will produce around 130,000 boe/d

“The greatest and most long-term ripple effects will normally occur in the operating phase. We would like the Aasta Hansteen development to drive industrial development in the north,” says Margareth Øvrum, Statoil’s executive vice president for technology, projects and drilling. The main contracts for the Aasta Hansteen project will be based on studies performed by Norwegian and international suppliers.

Expected start up for production is in Q3 2017 Start up for drilling Q1 2016 Licensees: Statoil (75 percent), OMV (15) and ConocoPhillips (10)

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Fixed platforms Gudrun (Statoil) Discovered in 1974, Gudrun has had to wait for 40 years before being converted from a find to a producing field. The plan for development and operation (PDO) estimates recoverable reserves at 132 million boe, but this figure is by no means set in stone. New technology, greater knowledge of the area and reuse 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 7,400 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 19 billion (US $3.27 bn).

Goliat

Valemon (Statoil) The Valemon field is one of Statoil’s largest development projects on the Norwegian Continental Shelf (NCS) in the next few years. 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). Field partners will invest some NOK 26,9 billion (US $4.63 bn) 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 the Heimdal hub which allows 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 South (ConocoPhillips) 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% (25-35 million cubic metres) and represents total partner investments of NOK 27.2 billion (US $4.68 bn) . The new platform will be connected to the Ekofisk Complex by a bridge with production start-up in late 2013.

Ivar Aasen

Eldfisk 2 (ConocoPhillips) Eldfisk II comprises a new integrated platform with wellhead, process and living quarters, designated Eldfisk 2/7 S, which will be connected to the existing Eldfisk Complex. Up to 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% (35-45 million cubic metres) and represents total partner investments of NOK 37.9 billion (US $6.53 bn). Eldfisk II is planned to be in production in 2015.

Edvard Grieg (Lundin) Lundin is the operator for the first development on the Utsira High. This breakthrough discovery laid the grounds for finding 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. Total investment

Martin Linge LQ Apply Leirvik

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will amount to approximately NOK 24 billion (US $4.13 bn and production is scheduled to start in 2015.

Ivar Aasen (Det norske) Together with the partners in the Ivar Aasen license, Det norske reached an agreement with the partners in the Edvard Grieg field on a coordinated development solution for the area. Aasen will be using a fixed platform with pre-processing. The well stream will be transported from the platform to Edvard Grieg for final processing and exported to market. Coordinated development means that Aasen will be dependent on Grieg carrying out the processing for the field. Coordinating the two developments will reduce the size of the equipment required on the Aasen platform to around 12,000 tonnes topside only, with a crew of around 20. A contract has already been signed with Mærsk for a new jackup drilling rig that will drill the production and injection wells.

Martin Linge (Total)

Located in the northern part of the North Sea, the Martin Linge gas field is about 150 kilometres west of Kollsnes. Total investments in the development amount to about NOK 26 billion (US $4.48 bn), with recoverable reserves in the field estimated at 189 million barrels of oil equivalents. The field will be developed with a fixed installation resting on the seabed. Gas will be exported via the UK pipeline system, while the oil will be processed and stored on a storage ship. The development solution the operator has chosen is based on power from land from Kollsnes.

Gina Krog (Statoil)

Gina Krog (Dagny)

Located about 30 kilometres northwest of Sleipner, the Gina Krog field will be tied back to the Sleipner field. Gina Krog, which was originally a minor gas discovery just north of Sleipner, is a field that has been considered for development on a number of occasions since it was discovered in 1974. Development of this field, which will be among Statoil’s major new projects with an estimated 225 million barrels of oil and gas, illustrates the importance of exploring and developing in mature areas with established infrastructure. Now the company aims to extend the lifetime and exploit the available capacity on Sleipner for many years to come. The total investments are estimated to be NOK 31 billion (US $5.34 bn).

Hod (BP) The recommended development concept is a new normally unmanned wellhead platform and set up about two kilometres northeast of the existing Hod platform. The new facility will be a steel jacket with four legs and a total of 25 drilling slots. It is planned to add a new 8-inch gas pipeline from Valhall for gas lift on inspections Hod, and a new 10-inch water injection pipeline from Valhall. There will be a new 12-inch 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 (US $2.06 bn) which includes costs related to the platform, pipelines, drilling and modifications based on inspections host platform. The existing wellhead platform on Hod is scheduled to be removed five years after production ends in the period 2016-2018.

Snorre WHP (Statoil) “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, Statoil’s senior vice president for operations west, who points to new Snorre area studies conducted by Statoil.

Valemon

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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 (US $310 million) in a new pipeline between Snorre A and Snorre B, to enable Snorre A oil to be piped to Statfjord B for storage and export to the market from 2012 onwards.

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“With King Lear, a discovery in the “basement” in the Ekofisk area, and the former Tommeliten Alpha find, we see exiting opportunities there,” says spokesman Ottar Minsaas at Total Norway.

Yme (Talisman)

Tommeliten Alpha, which was found in 1977, is estimated to contain about 40 million barrels of oil and 14 billion cubic meters of gas. Reserve estimates for King Lear are between 70 and 200 million barrels of oil equivalent, in terms of gas and condensate. In total, King Lear and Tommeliten contain up to 330 million boe. And there are identified several other prospects in the region.

Supplier SBM Offshore and operator Talisman have agreed to reject the Yme platform. But Talisman still has ambitions to develop the field.

Butch (Centrica)

“The settlement allows us to get on with the Yme project in a more predictable and structured way. Now we can concentrate on getting Yme in production and we are free to look at other development options. We have plans to develop the field with an alternative topside. So far we have invested in excess of NOK 10 billion (US $1.724 bn) at Yme. More than half of this is related to wells and subsea installations, which can still be used when the field is developed,” says Grethe Foldnes communication manager at Talisman Energy Norway.

King Lear / Tommeliten Alpha (Statoil/ConocoPhillips) Statoil’s King Lear find could be the key that also unlocks the development of ConocoPhillips’ Tommeliten Alpha. Total, which is a partner in both licenses, has said that a joint development could be a reality by 2020.

Butch, named after the legendary train robber Butch Cassidy, may prove to be Centrica’s first operated development on the Norwegian Continental Shelf. The oil discovery in the North Sea, which is estimated to contain between 30 and 60 million barrels, is to be appraised by two wells during 2013. “There is a significant upside potential. We have secured a lot of acreage in the area during the last rounds. Depending on the volumes we are able to prove, this can become a tie-back or a stand alone development,” says exploration manager Steinar Meland from Centrica.

Frigg Gamma Delta (Centrica) Frigg Gamma Delta is another possible development by Centrica. An area plan may include the fields Frigg Gamma Delta, Frey, Krafla, Fulla and Rind - with the British company as a driving force in the process. Centri-

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ca has operatorship of Frigg Gamma Delta and Fulla and is a partner in the Rind discovery. “The resources are large enough to justify a development. But it is a complicated matter - with many fields and partnerships with various strategic and economic interests. We are the largest player in the area and many of the other companies are probably waiting for our initiative. Therefore, we are working hard to find solutions,” says Centrica exploration director Steinar Meland.

Valhall West Flank (BP) In connection with the Hod pre-project, evaluation work is taking place to consider building a new platform on the Valhall west flank, expanding the Life of Field seismic programme and upgrading the capacity for produced water and gas handling on Valhall.

Floaters Goliat (Eni) The first oil discovery to be developed in the Barents Sea with investments streching to NOK 36.7 billion (US $6.37 bn), Goliat is expected to produce for at least 15 years. The field is located 50 kilometres 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 eight 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.

Knarr (BG) The Knarr field, formerly known as Jordbær, contains an estimated 70 million recoverable oil equivalents. The plan for development and operation (PDO) of the Knarr field was approved in 2011 with first production scheduled in 2014. It will be developed using a leased FPSO with two drill centres. The discovery of Knarr West in late 2011 added about 20 million boe gross reserves and has been integrated into the development of the Knarr project.

Bream (BG) Bream is an oil field located 50 km northwest of the Yme field. The Bream oil field was awarded to the license partners in the 2006 APA licensing round, having originally been discovered in the 1970s. The discovery was successfully appraised during 2009. Current development plans include four horizontal production wells and two injectors tied to a leased FPSO, according to partner Premier Oil. Project sanction is targeted for 3Q 2013.

Skarfjell (Wintershall) 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 has emerged that the discussions on joint development of several discoveries already have commenced. Gjøa already processes oil from the Vega and Vega South fields, but GDF Suez still has free capacity on the platform. However, it would be natural for Wintershall to consider the possibility of a second area solution based on their discoveries, Grosbeak and Skarfjell, which hold a total of between 110 and 355 million boe. The company believes that the latter has the potential to become a hub in the area. Other potential floater developments could be Astero, Grosbeak, Maria, Beta and Peon. Sources: Offshore.no, NPD, OED, Rystad Energy, the operators.

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Agility Group Fugro Multiconsult OTD Rapp Bomek AS

Company Profiles Field Development

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A full-service engineering, procurement, construction, installation and completion company (EPCIC)

Agility Group is a full service supplier of projects, solutions and services to the offshore oil and gas industry. We deliver services in the entire value-chain from concepts and studies, through basic and detailed engineering to construction, installation and completion. We specialize in medium-sized projects and have more than 30 years of experience. We are 1,200 employees, of whom more than 500 are highly qualified engineers. Revenue of approx. NOK 2 billion. OFFSHORE DEVELOPMENT PROJECTS: Front end • Feasibility and Concept studies • FEED Maintenance and modifications • EPCIC modification projects • Offshore & onshore services SUBSEA FABRICATION: • Subsea manifolds and templates • Subsea process systems • Subsea compression systems MINOX TECHNOLOGY AS: Technology for IOR water injection. The most efficient and compact way to deaerate watert

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Topside & floating units • Process and drilling topsides • Drillship and semisub rig design • FPSO and FSO design

• Satellite structures • SURF products

Field proven – over 30 process modules delivered over 20 years

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With the Starfix Superstar service you can have it all. ‘All services’ access to all high performance Fugro DGNSS augmentation services.

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

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You need 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.

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.

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.

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, the gas receiving plant for the Ormen Lange field and the recent development of the oil terminal for the Johan Castberg field (Skrugard). 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.no

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15 Stavanger, Norway (22)-23-24 October 2013

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“The OTD Exhibition attracts close to 30.000 visitors from 31 nations, making it one of the fastest growing oil exhibitions in the world” Register for your FREE OTD Pass: www.offshoredays.com

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R a p p B o m e k 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.

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SUBSEA

04/

Subsea

Huge market growing 71%

SUBSEA

The next subsea revolution Norway is making huge steps towards the subsea factory. Statoil is taking subsea development longer, deeper and colder. Through innovative thinking and collaboration with partners and suppliers, the operator aims to develop the elements required for a subsea factory by 2020.

Production goal 2.5 million boe A subsea factory is a process plant on the seabed making it possible to utilise remote-controlled transport of hydrocarbons at any offshore facility. The future resources are further from land, at greater depths and in colder and harsher environments. The subsea factory will be vital to realise business opportunities for Statoil in these areas and help them realise their production goal of 2.5 million barrels of oil equivalent (boe) per day by 2020. Statoil believes compact separation facilities on the seabed also will be a key to success in Arctic areas or deepwater areas like the Gulf of Mexico and Brazil. Already Statoil operates about 500 subsea wells and has a 25-year track record of subsea technology development, implementation and operation.

A target stretch Norway’s major operator has 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. Projects such as the oil-dominated multi-phase transport on Tyrihans and Snøhvit’s gas condensate transport are at the forefront in the development of multi-phase transport over long distances. The next phase is to realise subsea gas compression in 2015. Then the next giant step is just five years ahead; a subsea factory. “I have been involved in this ambition and it’s a pretty hairy goal. But we are constantly working systematically with the things missing to make this happen,” says Margaret Øvrum, Statoil’s executive vice president for technology, projects and drilling.

Åsgard in 2015 Gas compressors are placed on the seabed to increase and accelerate gas production from subsea wells. Reservoir pressure in producing gas fields falls over time, causing gas output to decline. For production to continue and to maximise recovery from the fields, gas pressure must be raised or production will cease.

Subsea gas compression and a subsea factory is the next big thing sub

SUBSEA

Until now the solution has been to install gas compressors on an existing platform, or to build a new staffed compression platform. Now the aim is to install the compressors on the seabed, close to the wellheads to improve recovery. Åsgard subsea gas compression will be realised in 2015 as the world’s first project of its kind. The technology will increase recovery from Mikkel and Midgard by around 280 million barrels of oil equivalent. The Midgard and Mikkel gas reservoirs in the Åsgard field have been developed as subsea field installations. The wellstream from both fields, which are located 50 and 70 kilometres away respectively, is sent in the same pipeline to the Åsgard B platform. Analysis shows that towards the end of 2015 the pressure in the

bsea. Illustration: Statoil

reservoirs will become too low to avoid unstable flow and maintain a high production profile to the Åsgard B platform. Compression is therefore necessary to ensure a high gas flow and recovery rate.

Close to the well A large structure with compressors, pumps, scrubbers and coolers, will be placed on the seabed close to the Midgard wellheads. A dry gas compressor system will be used on Åsgard. Gas and liquids are separated before boosting. The liquid is boosted by a pump and the gas by a compressor. After boosting, gas and liquids are mixed into the same pipeline before transport to Åsgard B. The closer the compression facility is located to the well, the higher the efficiency and production rates become. By carrying out compression

SUBSEA

on the seabed, it also achieves benefits in the form of improved energy efficiency. “We have set the factory as a target in 2020, but the most difficult thing is the gas compression on Ågard and Gullfaks. If you manage this, you can take on the subsea factory as well. When you have managed to put turbines and compressors on the seabed, you have taken a huge technological step,” Øvrum says.

The Åsgard subsea gas compression will give 280 million BOE extra at Åsgard. All photos: Glenn Stangeland

Increased recovery Subsea wet gas compression will increase recovery from the Gullfaks South Brent reservoir by 22 million barrels of oil equivalent. The recovery rate can be increased from 62% to 74% on Gullfaks C using this solution combined with conventional low-pressure production in a later phase. This is a very good production rate for a subsea field. The wet gas compressor is to be placed on the seabed on Gullfaks South and will be connected to recovery of gas and condensate from the Brent reservoir. The gas will be compressed on the seabed, raising the pressure in the pipelines. There is no need for separation in this system, so gas and liquids are boosted together in the same machine. This makes the gas flow faster to the Gullfaks C platform, where it is processed. The wells can therefore continue to produce, and more gas can be brought up from the reservoir than would otherwise be possible. Subsea wet gas compression for Gullfaks South is a typical solution for small and medium-sized fields due to the size of the compressor. The concept is flexible and can be used on both new and existing fields. Statoil is also identifying several other candidates for wet gas compression.

Recovery rates can be increased significantly by using gas compression.

Must be viable To realise a subsea factory one has to develop technology that works and is cost effective. “Every item we shall have with us in the factory must be a good business case. We do not develop anything if it is not viable economically. The cost is falling per unit we build. But also remember that with the Åsgard compression project we were able to compete with a platform,” Øvrum stresses. She has made it a personal prestige project to realise the subsea factory and said that she refuses to retire before it is a reality. Margareth Øvrum now has the chance to experience two new historical moments on the Norwegian Continental Shelf. She was in fact the platform manager at Gullfaks when the first subsea well was put into production in 1986. Now seven years of extremely hard work to achieve her next dream lie ahead.

The Åsgard gas compression facility is a giant on the seabed.

SUBSEA

Photo: Geir Otto Johansen, Statoil

Expecting huge subsea growth The coming years, from 2013 to 2016, are expected to be a golden age in the subsea market. Both smaller and larger subsea related businesses are facing a huge upside in the next few years.

Divided in three 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 IMR – installation repair and installation services from rig. Overall it is expected that the oil companies’ purchases within these three areas will have a global growth from US $38 billion in 2012 to $72 billion in 2016. “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 70 % and 90%. 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 40 fields starting up in 2013. This increases to a total of 85 new fields in 2016. In Norway fields like Goliat, Åsgard

SUBSEA

Growing Subsea Market Growing Subsea Market SURF

Subsea Equipement

Subsea Services

2012

2013

2016

Source: Rystad Energy

subsea compression, Skuld and Knarr will start producing. Internationally there are also great opportunities through CLOV and PSVM in Angola, Sapinhoa and Lula Phase 1 in Brazil, and the Jack/St. Malo and Freedom (Gunflint) in the U.S. Gulf of Mexico. “All the major markets are experiencing strong growth ahead. We will see it in Norway, West Africa, Gulf of Mexico, Brazil, South West Asia 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 US $342 to 445 billion over the period 2013-2016, 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.

US $109 billion this year Over 55% 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 over 50% in 2020, even if many new platforms will be installed. There will also be even more money invested in subsea developments compared with other types of development solutions. The way Rystad Energy defines a subsea field, US $109 bn will be invested in 2013 - US $165 bn in 2015. For all other types summed up, the corresponding figure is US $122 bn in 2013 to US $131 bn in 2016. 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.

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Photo: FMC Technolgies

Photo: Aker Solutions

SUBSEA

The next subsea developments in Norway Over 50 new subsea fields will be developed in the near future. Production start up and estimated resources could be adjusted compared to this list.

Idun (BP) - 2013 Discovered in 1999. Resources included in Skarv.

Rutil/Brokitt/Opal (Statoil) – Not decided Discovered in 2011. Resources estimated to be 18-75 million boe. Tie in to Gullfaks.

Brynhild (Lundin) - 2013 Discovered in 1992. Resources estimated to be 3.6 million boe.

Fram H N (Statoil) – Not decided Discovered in 2007. Resources estimated to be 10.6 million boe.

Visund N (Statoil) - 2013 Discovered in 2009. Resources estimated to be 29 million boe.

Viper/Kobra (Marathon) – Not decided Discovered in 2009. Resources estimated to be 4 million boe.

Jette (Det norske) - 2013 Discovered in 2009. Resources estimated to be 10 million boe.

Ekofisk VB (Conocophillips) – 2013

Vilje S (Statoil) – 2013 Discovered in 2004. Resources estimated to be 7.6 million boe.

Troll Brent (Statoil) - 2014 Discovered in 2005. Resources estimated to be 3.7 million boe. Nona (Statoil) - 2015 Discovered in 2009. Resources estimated to be 13-31 million boe oil and 1-2 billion Sm3 gas.

Subsea fields to be developed. Photo: Statoil

Caterpillar (Marathon) - 2015 Discovered in 2011. Resources estimated to be 5-12 million boe.

Mikkel S (Statoil) - 2016 Discovered in 2008. Resources estimated to be 0.6 million Sm3 oil and 2.2 billion Sm3 gas.

Fulla (Centrica) Discovered in 2009. Resources estimated to be 0.6 million Sm³ oil and 4.1 billion Sm³.

Natalia/Sigrid (Statoil) - 2016 Discovered in 2001. Resources estimated to be 0.4 million Sm3 oil and 1.9 billion Sm3 gas.

Storklakken (Det norske) - 2015 Discovered in 2010. Resources estimated to be 7-12 million boe.

Garantiana (Total) - 2016 Discovered in 2012. Resources estimated to be 25-75 million boe.

Knarr W (BG) – 2014 Discovered in 2008. Resources estimated to be 74 million boe and 0.3 billion Sm3 gas.

Skinfaks S (Statoil) - 2015 Discovered in 2012. Resources estimated to be 50-100 million boe, combined with Rutil, Opal, Brent A/B.

Erlend NE (Statoil) - 2016 Discovered in 2009. Resources estimated to be 0.9 million Sm³oil and 1.0 billion Sm³ gas.

Gudrun E (Statoil) – Not decided Discovered in 2010.Resources estimated to be 5.6 million boe oil and 0.5 billion Sm3 gas.

Snorre B template (Statoil) - 2015 Discovered in 2009. Resources estimated to be 33 million boe.

Hasselmus (Shell) - 2013 Discovered in 1999.

Tellus (Lundin) - 2016 Discovered in 2011. Tie-in Edvard Grieg.

Lower Lunde (Statoil) - 2016 Discovered in 2010. Resources estimated to be 1-3 billion Sm3.

Linnorm (Shell) – Not decided Discovered in 2005. Resources estimated to be 23.9 billion Sm3.

Trestakk (Statoil) - 2016 Discovered in 1986. Resources estimated to be 7.7 million Sm3 oil and 1.9 billion Sm3 gas.

Krafla West (Statoil) - 2016 Discovered in 2011. Resources estimated to be 50-70 million boe.

Svalin (Statoil) – 2013/2014 Discovered in 1992. Resources estimated to be 76 million boe. Bøyla (Marathon) - 2014 Discovered in 2009. Resources estimated to be 23.7 million boe. Kristin Q (Statoil) – Postponed – no date given Discovered in 2005. Resources estimated to be 94-188 million boe. Flyndre (Maersk) – 2013 Discovered in 1974. Resources estimated to be 2.5 million boe oil and 0.1 billion Sm3 gas.

Galvort (Statoil) - 2016 Discovered in 2008. Resources estimated to be 1-3 billion Sm3.

SUBSEA

Subsea fields to be developed Vega field. Photo: Statoil

Lysing (Statoil) - 2016 Discovered in 1985. Resources estimated to be 1.2 million Sm3 oil and 0.2 billion Sm3 gas.

Asterix (Statoil) - 2017 Discovered in 2009. Resources is estimated to be 17.8 billion Sm3 gas.

Afrodite (ENI) – 2018 Discovered in 2008. Resources is estimated to be 11,3 Sm3 gas

Freke (Statoil) - 2016 Discovered in 2009. Resources estimated to be 6-18 million boe gas.

Snadd S&N (BP) – 2017 Discovered in 2012. Resources is estimated to be 1.2-2.3 billion Sm3 gas.

Gjøk (Statoil) - 2019 Discovered in 2009. Resources estimated to be between 1.3 and 1.5 billion Sm3 gas.

Eirin (Statoil) - 2017 Discovered in 1978. Resources estimated to be 7.9 billion Sm3.

Grevling (Talisman) - 2017 Discovered in 2009. Tie-in to Varg. Resources is estimated to be 40-130 million boe. Titan (RWE Dea)

Alve N (Total) - 2019 Discovered in 2009. Resources estimated to be between 20 and 100 million boe.

Frigg Delta & Gamma (Centrica) - 2017 Discovered in 1986. Resources estimated to be 11.2 million Sm3 oil and 3,4 billion Sm3 gas. Lavrans (Statoil) - 2017 Discovered in 1995. Resources is estimated to be 2.2 million Sm3 oil and 8.3 billion Sm3 gas. Snefrid (Statoil) - 2017 Discovered in 2008. Resources is estimated to be 100-125 million boe. Haklang (Statoil) - 2017 Discovered in 2008. Resources is estimated to be 8-14 billion Sm3 gas.

Zidane (RWE Dea) 2017 Discovered in 2010. Resources is estimated to be 17.4 billion Sm3 gas. Peik (Enquest) - 2018 Discovered in 2008. Resources is estimated to be 0,6 million Sm3 oil and 2 billion Sm3 gas. Ragnarock S (Statoil) – 2018 Discovered in 2007. Apollo (Lundin) - 2018 Discovered in 2010. Resources is estimated to be 15-65 million boe.

Butch (Centrica) - 2019 Discovered in 2011. Resources estimated to be 5-10 million boe. Fogelberg (Centrica) - 2020 Discovered in 2010. Resources estimated to be 1.7 million Sm3 oil and 9.7 billion Sm3 gas. Snadd Outer (BP) – 2020 Discovered in 2012. Resources estimated to be 1.2-2.3 billion Sm3 gas. Crimp (Statoil) - 2020 Discovered in 2012. Resources estimated to be 12-18 millimon boe. (Sources: NPD.no, companies, Rystad Energy and Offshore.no)

SUBSEA

Marwin Oceaneering

Company Profiles Subsea

SUBSEA SUBSEA

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.

PHONE: + 47 3 5 98 3 3 05 FA X : + 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

EMAIL: post@marwin.as 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.

95 97

SUBSEA

PRODUCTS & SERVICES

MAGNUM - WORK ROV

Rig Chase™

SUBSEA WELLHEAD PICKER

TORQUE TOOL COMPACT CL. 1-4

NEPTUNE - PIPESCANNER

The illustration shows some of the products and services we offer.

Oceaneering is a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry. Oceaneering’s business offerings include remotely operated vehicles, built-to-order specialty subsea hardware, deepwater intervention, non-destructive testing and inspection, and engineering and project management.

ROV OPERATIONS

OILFIELD PRODUCTS

Remotely Operated Vehicles (ROVs). Oceaneering owns and operates the largest fleet of offshore work class ROVs in the world.

We manufacture “built-to-order” specialty subsea hardware and tooling, including a service line of Installation Workover Control Systems (IWOCS) and “All Electric” products.

• Drill Support

• BOP Intervention & BOP Control Systems

• Completion

• Cables & Umbilicals

• Installation

• Clamp Connectors

• Intervention

• Control Systems, Skids & HPU’s

• Construction

• Flowline & Pipeline Connection & Repair Systems

• Inspection, Maintenance and Repair (IMR)

• Hot Stabs & Receptacles • Installation Workover & Control Systems (IWOCS) • ROV Replaceable Modules • ROV Tools & Equipment • Valves & Actuators

1 ROV OPERATIONS

2 OILFIELD PRODUCTS

SUBSEA POWER BANK

3 OILFIELD SERVICES

SUBSEA 97 5 ASSET INTEGRITY

OILFIELD PROJECTS

UMBILICAL CONNECTION SYSTEMS

EMAGNUM - WORK ROV

ANTI SURGE ACTUATOR (ASA) PIPELINE CONNECTION SYSTEM

UMBILICALS

OILFIELD SERVICES

With Electrical Propulsion System

ELECTRICAL ACTUATORS

OILFIELD PROJECTS

ASSET INTEGRITY

Dedicated tool-pool with turnkey responsibility for repair, maintenance and storage. Dredging and cutting solutions and assosiated engineering.

We install subsea hardware and perform inspection, maintenance and repair work on oilfield assets. Our Rig Chase™ program removes wellheads, reducing rig time and costs for operators.

We provide asset integrity management, corrosion management, inspection and non-destructive testing equipment and services to the oil and gas, power generation, and petrochemical industries.

• Rental & Maintenance

• Vessel Based Projects

• Asset Condition Evaluation Tool (ACET)

• Dredging

• Subsea Decommissioning

• Conductor Stabilization Solution

• Subsea Cutting

• Subsea P&A

• In-Service Pipeline Inspection

• Subsea Well Stimulation

• Inspection and Integrity Management

• Subsea Pipeline Repairs

• Maintenance Management • Maintenance Services • NDT • Rope Access

Onshore terminals

05/

Onshore terminals

The future spells expansion

onshore terminals

100

Onshore terminals

MelkĂ¸ya. Photo: Helge Hansen, Statoil

onshore terminals

Norway’s terminals: Where the cash comes in Norway’s onshore terminals make the connection between the value of the countries offshore resources and the markets where the value of those products is realised. Without Kårstø, Kollsnes, Mongstad, Nyhamna, Melkøya, Sture and one day Veidnes too - the vast wealth of Norway’s offshore oil gas and condensate resources could not be captured and value realised.

Concern Terminal operator Gassco has ongoing concern about keeping Norway’s crucial gas infrastructure in good health and the company’s most recent annual report has pointed to concerns about the longterm for both Kårstø and Kollsnes. Gassco admits that external corrosion under the pipeline insulation has been an ongoing concern at both plants. Most recently they have turned to using sniffer dogs to detect corroded pipe in an experiment to validate their potential use in maintenance work at both Kårstø and Kollsnes and other Gassco-operated plants in Europe. Although sniffer dogs won’t be used in the process plants, they could be used to identify defects in pipeline samples brought in to a laboratory for further examination. Thorbjørn Svendsen, executive vice president for technology at Gassco, says the sniffer dogs have proved to be effective in identifying potential corrosion in process pipework. “The results are very good, and we see that this represents a reliable and cost-effective approach,” he says. To combat the crumbling infrastructure at its two prime onshore terminals Gassco has an insulation scaffolding and surface treatment (ISO) project at Kårstø to identify corroded insulation on pipework there, in a bid to prevent gas leaks. “Greater attention will also be devoted to corrosion at Kollsnes, where an ISO project is being established,” says the plant operator. “A number of ladders and walkways at Kollsnes made of glass fibre-reinforced epoxy/plastic (GRE/GRP) are in a weakened condition after 15 years of operation,” Gassco admitted in its 2011 annual report. As a result NOK 800 million (US $137 m) was budgeted by Gassco to replace those corroded structures. “Given the ageing of the transport system, enhancing the robustness of the assets was a key con-

101

102

Onshore terminals

Kårstø. Photo: Øyvind Hagen

cern in 2011 and will remain so in the years to come,” Gassco admits. Gassco has been implementing upgrades at Kårstø and Kollsnes to keep them operating: The control system for Kollsnes export compressors, and the Statpipe booster compressors at Kårstø are being upgraded at a cost of NOK 400 million (US $68.9 m). After two steam boilers were upgraded as part of the Kårstø Expansion Project 2010 (KEP2010), two more steam boilers on Statpipe are to be upgraded for about NOK 600 million (US $103.4 m). KEP 2010 was designed to improve “robustness” at the plant, and an NGL metering project involved replacing fiscal metering systems

for liquids, and these costs NOK 6 billion (US $1.03 bn) and NOK 740 million (US $127 m) respectively. Together Kårstø, Kollsnes, and the other terminals at Nyhamna, Melkøya and Sture keep the hydrocarbons flowing into Norway to ensure the wealth from the country’s offshore resources can be realised. And now another new terminal is planned in the north to take new production from Barents Sea discoveries at Skrugard and Havis.

onshore terminals

Kårstø Located just south of Haugesund and north of Stavanger, Kårstø opened for operations on on 25 July 1985 when the first gas flowed into the plant from the Statfjord field. Kårstø is the landing point for the Statpipe line which takes gas from Norway’s North Sea fields into this major Norwegian onshore terminal. While Norway’s offshore pipeline networks have grown in length and complexity in the 30 years since, Kårstø remains key to the country’s infrastructure which allows the the country’s offshore hydrocarbon resources to be captured. Kårstø is also the landing point for production from the Åsgard Transport System – taking gas from fields at higher latitudes in the Norwegian Sea including the Åsgard field - in operation since October 2000 - and with the advent of the New Extraction Train 1 inaugurated in October 2003 rich gas from the Mikkel field could also be handled at Kårstø. Then in 2005, the Kårstø Expansion Project – increasing capacity by 20% to 88 million cubic metres a day - allowed Kårstø to begin taking rich gas from the Kristin field also via the Åsgard Transport System. A carbon dioxide removal system was also installed during KEP 2005. This project also involved expanding ethane separation capacity by over 50%, to around 950,000 tonnes per year. All this is sold via long-term contracts and shipped from the plant. Today, just under 90 million Sm3 of rich gas from the North Sea and the Norwegian Sea flows through Kårstø every day. To get an idea of the importance of Kårstø to the European gas network, one needs to understand that up to 25% of the natural gas delivered from Norway to European countries is exported via Kårstø each year, according to plant owner Gassco. Keeping Kårstø updated to cope with ongoing demand for receiving and processing oil and gas, plant operator Gassco has implemented various projects to keep operations running smoothly. By the end of 2012 NOK 8.4 billion (US $1.45 bn) had been spent modernising Kårstø over five years to keep it running. The KEP 2010 project saw some of oldest parts of the plant – up to 25 years old - upgraded, with one of the main elements involving upgrades to instruments and utility systems, and around 1.85 million man-hours of labour. KEP 2010 was about ensuring long term reliable operations. Two sub-projects involved replacing four metering stations used for loading products from tanks into carriers, while mixing equipment on the Statpipe and Åsgard transport pipelines was replaced to ensure correct CO2 content for sales gas.

103

104

Onshore terminals

Aibel collected a NOK 470 million (US $93.5 m) contract for electrical and instrumentation work at Kårstø as part of the KEP 2010 programme. As well as gas, Kårstø receives unprocessed condensate from the Sleipner field area which is stabilised and fractionated in a dedicated plant. Natural Gas Liquids are handled too. Rich gas containing NGLs is separated out and fractionated into propane, butane, isobutane, naphtha and ethane. Kårstø is a major storage facility for other hydrocarbons too. The site has capacity for 250 million cubic metres of propane in caverns. Another three tanks, one of 35,000 cubic metres and two of 20,000 cubic metres store butane. A further three tanks, one of 35,000 cubic metres and two of 8,000 cubic metres store ISO butane, two naphtha tanks of 17,000 each. Another tank of 25,000 cubic metres is used for ethane, plus two 60,000 cubic metre tanks are available for stabilised condensate. Kårstø is widely regarded is the third largest port for LPG exports in the world with between 600 and 700 ships arriving and leaving the terminal there every year. In 2011 there were 658 ship movements at Kårstø according to Gassco’s annual report.

Uptime Operational uptime at the Kårstø processing plant was 96.75%, up 2.64 percentage points on the target figure, according to plant operator Gassco in its 2011 report. Kårstø is not only a major gas terminal and export facility, but also home to a research laboratory, K Lab, which opened in 1988, and provides facilities for testing and qualifying equipment for oil and gas transport systems. At the end of 2012, NOK 8.4 billion (US $1.44 bn) of investment over five years at Kårstø was completed. Aimed at keeping the plant in prime condition, the work on some of the oldest parts of the site should ensure its usefulness well into the future. “Making Kårstø more robust will help to maintain the high regularity of Norwegian gas deliveries to Europe,” declared Gassco’s Svein Birger Thaule, executive vice president for asset management. Seventeen different projects were carried out between 2008 and 2012. Safety and utility systems upgrades were major features of the programme, while process facilities continued operating, providing 21 billion cubic metres of gas annually. Early in 2013, Foster Wheeler secured a three-year framework agreement from Statoil, Gassco’s technical service provider, for provision of Front End Engineering and Design on any further projects at both Kårstø and Kollsnes, lasting until 2016. Kårstø, Gassco chimney stack Photo: Øyvind Sætre

onshore terminals

Kårstø capacities

KARSTO CAPACITIES

Kårstø can handle 10 million tonnes of NGL (natural gas liquids) and condensate a year

Karsto can handle 10 million tonnes of NGL (natural gas liquids) and condensate a year

145

112

N-BUTANE

ETHANE

tonnes/hour

106

285

NAPHTHA

PROPANE

351

CONDENSATE

I-BUTANE

Karsto pipelines

105

106

Onshore terminals

Kårstø pipelines Karsto pipelines

Pipeline From

Åsgard Transport System

Statpipe Dry Gas Leg 1

Statpipe Dry Gas Leg II

Statpipe Dry Gas Leg III

Statpipe Rich Gas

Europipe II

Europipe I

Åsgard field

Kårstø

Heimdal

Draupner

Kårstø

Draupner E riser platform

Dornum

Dortmund

Kårstø

Draupner S

Ekofisk complex

Statfjord

Emden (GER)

Length (km)

707

228

155

213

308

658

620

28 and 36

21.1

30.7

200.000

Internal diameter (inches)

Capacity (Mcm/d of gas)

b/d of non-stabilised condensate

onshore terminals

Kollsnes. Photo: Øyvind Sætre

Melkøya Home to the terminal for the Snøhvit gas development in the Barents Sea, Melkøya features Europe’s first liquefied natural gas (LNG) plant. Melkøya made the headlines because it was the terminal for the first wholly subsea gas development offshore Norway in the Barents Sea. After Snøhvit came onstream in 2009, the gas was piped ashore using a new 143 kilometre (83 mile) pipeline for liquefaction at Europe’s first production facility for LNG, Hammerfest LNG, where Snøhvit gas is cooled down to mi-

nus 163 oC – reducing its volume 1/600th. The first LNG cargo created at Melkøya arrived at the US east coast Cove Point terminal in February 2010 on board the Arctic Discoverer. Train 1 at Hammerfest LNG produces 13,000 tonnes of LNG, 2,000 tonnes of condensate and 900 tonnes of LPG daily. Back in January 2011 Snøhvit field partners started work on plans for a possible second LNG train at Melkøya. Statoil said then that an

investment decision would be made late 2013 and if built, the new plant could be online by 2018. However, by early 2013 the decision had been made not to go ahead with the second LNG train because gas discoveries beyond the Snøhvit field were not deemed sufficient for the investment necessary. However more gas is likely to be put through Melkøya in future as the Snøhvit satellite Askeladd is brought onstream and future gas compression is possible.

Kollsnes Lying just west of Bergen, Kollsnes is the reception point for rich gas from the Troll field, for which it was originally built in 1996. Kollsnes is an integral part of the Troll Gas development. The facility receives Troll gas via two 133 km (83 mile) 36-inch lines which form the Troll Gas Pipe operated by Statoil. During 2010 a third 36-inch line from Troll was pulled into the terminal,as part of a NOK 3.1 billion (US $534 million) project. Troll gas is separated

out, dried and exported from Kollsnes to Europe via Statpipe, Zeepipe, Europipe I and II, Franpipe, and the Vestprosess system takes NGLS to the Mongstad refinery. Kollsnes is also the landing point for the Kvitebjørn gas export line too; a 147 km (91.8 mile) 30-inch link from the Kvitebjørn platform with the capacity of 27 Mcm/d of gas, which started operating in October 2004. At Kollsnes natural

gas, liquids and condensate from Kvitebjørn are extracted. Dried gas is compressed and piped to markets through the Norwegian gas transport system, and condensate is sent on to Mongstad via the Troll Oil pipeline II. Kollsnes gas processing plant currently has capacity for up to 143 Mcm/day.

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Onshore terminals

Photo: Øyvind Hagen, Statoil ASA

Mongstad First developed in the 1970s, Mongstad is many things in the Norwegian energy network: it is a crude oil terminal, a sea port, a refinery, and a combined heat and power plant, as well as a research site for carbon capture and storage technology. Mongstad oil terminal is the crown jewel in the country’s hydrocarbon hierarchy, with an annual crude oil handling capacity of 12 million tonnes – nearly 90 million barrels - a year. For Statoil, Mongstad provides intermediate storage for a third of its crude oil production on the Norwegian Continental Shelf. Crude oil arrives at Mongstad from Troll B and C, Kvitebjørn and

from the Fram field, via the oil pipelines. From here, oil goes to Europe, North America and Asia. Mongstad’s heat and power plant started up in 2010 as a joint venture between Statoil and Dong Energy. The plant provides electrical power and heat to the Mongstad refinery and in the longer term this element of the site – it is hoped – will ensure its value as an industrial centre. Electrical power from Mongstad is also used on the Troll A platform, at the gas treatment plant at Kollsnes. Operating at full power, the two gas turbines at the Mongstad plant, which recycles flue gas heat and which also

features a steam turbine generator set, provides 280 megawatts (MW) of electricity and 350 MW of heat. Recycled flue gas is used to pre-heat crude oil and high pressure steam is used within the Mongstad process plant. Mongstad refinery produces petrol, diesel, jet fuel, and other lighter petroleum products, and it has moved with the times. Expansion in 1989 increased capacity from 6.5 million tonnes (48.68 m bbls) to 10 mt (74.9 m bbls) and it increased again to 12 mt in 2011. A desulpherisation plant was introduced in 1996 and a benzene reduction facility followed in 1997 – to meet European Union environmental standards

onshore terminals

Nyhamna Nyhamna is set for a major new role as a Norwegian terminal now that the decision has been taken to go ahead with the new Polarled gas pipeline to support the deepwater Asta Hansteen spar development in the Barents Sea. Polarled – for which a new plan for installation and operation was submitted to the Norwegian Ministry of Petroleum and Energy in January 2013 – involves construction of a new 480 km (300 mile) 36-inch gas pipeline from the Aasta Hansteen development into the Nyhamna terminal, which will have capacity to carry 70 Mcm/d of gas. Furthermore, a 30 km (18.75 mile) spur line will run to the Kristin field platform – tying Polarled into the Asgard Transport System. This new line will also have the options to tie-in the Lin-

norm discovery via the Draugen field, and the recent Zidane discovery, via Heidrun, with spur lines 60 km (37.5 miles) and 173 km (108 miles) south of Asta Hansteen. Nyhamna is already the terminal for production from the Ormen Lange deepwater gas field, with a 120 km (75 mile) dual 30-inch gas pipeline running from the field location into Nyhamna. Nyhamna is the start point for another major part of Norway’s gas infrastructure, the Langeled pipeline system, which carries gas produced from the deepwater Ormen Lange field operated by Norkse Shell from Nyhamna to the UK. Langeled runs for a total distance of 1,166 km (728 miles) – making it the world’s longest

underwater gas pipeline - with a 627 km (392 mile) 42-inch Langeled North section from Nyhamna to the Sleipner East field platform which became operational in October 2007. Langeled South is a further 543 km (339 mile) 44-inch section from Sleipner East to the Easington terminal on the east coast of the UK which started operating in June 2006. Langeled North has capacity for 74.7 Mcm/d of gas and Langeled South 72.1 Mcm/d. Condensate is also treated and stabilised at Nyhamna and the terminal there is set to be expanded by a new pipeline to tap the Norwegian Sea Luva and Linnorm discoveries for which Gassco has already performed initial engineering.

Sture Lying north-west of Bergen, Sture is the landing point for crude oil from the Oseberg and Grane field areas.

CAPACITIES

Output from Oseberg arrives via the 115 km (72 mile) Oseberg Transport System which carries production from the Oseberg field centre – onnes of NGL (natural gas liquids) and condensate a year Oseberg C, Oseberg East, Oseberg South, Tune, Brage, Veslefrikk and Huldra. Production also flows into Sture via the 212 km (132 mile) Grane Oil Pipeline. The site is also an oil export point with two berths able to take tankers up to 300,000 deadweight tonnes while five artificial rock caverns provide storage for up to one million ETHANE cubic metres (629 million barrels) of crude oil. tonnes/hour Another 60,00 cubic metres of storage is provided for LPG and a ballast water cavern at Sture accommodates up to 200,000 cubic mePROPANE tres.

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Sture is also a unit for processing VOCs – volatile organic compounds - from Norway’s offI-BUTANE shore fields. At Sture a fractionation plant produces a liquefied petroleum gas mix which is exported either by ship or via the Vestprosess system to the Mongstad refinery, also just north of Bergen.

STURE PRODUCTS Oseberg blend crude oil and condensate from seven platforms LPG mix, a blend of propane and butane Naphtha, comprising pentanes and hexanes, used with crude oil in refineries Fuel gas, methane and ethane, used for heating in the terminal processes Grane blend crude oil from the Grane platform Source: Statoil

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Onshore terminals

onshore terminals

Tjeldbergodden Apart from the Snøhvit plant at Melkøya, Tjeldbergodden in mid Norway is currently Norway’s most northerly terminal in the Norwegian hydrocarbon transport network, acting as the landing point for the 250 km (156 mile) 16inch Haltenpipe system from the Heidrun field, with capacity for 7.0 Mcm a day. At Tjeldbergodden, four plants process the wellstream, providing gas reception, methanol, air gas and

gas liquefaction facilities. Opened in June 1997 the site provides gas reception facilities, air separation and a methanol production plant – which is ranked as Europe’s largest capable of producing up to 900,000 tonnes of methanol a year – accounting for 25% of Europe’s total methanol production and 10% of consumption in continental Europe.

Veidnes Veidnes is set to become a new name on the Norwegian terminal network now that Statoil has signalled plans to build a new reception plant there to handle future output from the Barents Sea Skrugard and Havis fields. Veidnes lies just outside the town of Honningsvåg, about 100 km (62 miles) east of Hammerfest, in Finnmark county in northern Norway. Announcing the decision for the new plant early 2013, Øystein Michelsen, Statoil’s head of development and production in Norway said the decision to site a new terminal at Veidnes means a new opportunity for this part of the country and is a strategic one for the future. “The decision to bring Skrugard oil ashore at Veidnes is a key element of the further development of Norwegian oil and gas industry,” Michelsen has declared, adding: “This may spark off a new industrial era. This concept choice will facilitate further exploration and help make any future discoveries profitable.” With reserves estimated at between 600 and 800 million barrels of oil in a water depth of 380 metres (1,246 feet) and due to come onstream by 2018, Skrugard and Havis, now Photo: Harald Pettersen, Statoil ASA

known as the Johan Castaberg development, are due to become the centrepiece in a new push for development by Statoil in the far north of the country. At the Skrugard field location a new semi-submersible platform is planned and the oil is to be brought ashore at Veidnes via a new 280 km (175 mile) pipeline. A new terminal is planned with oil storage facilities located within two mountain caves. From here, Skrugard and Havis oil is to be transported via an onshore pipeline to a quayside where it will be collected by tankers. Between 50 and 100 crude tanker visits a year are anticipated at Veidnes. Nine new prospects in the Barents Sea are due to be drilled by Statoil in 2013 and 2014. Four of these are within the Skrugard area. If these wells find more reserves, they could boost the recoverable reserves base for Skrugard, and increase potential throughput at Veidnes. “Because of this potential it is important to have a concept which also ensures the necessary flexibility to tie in future discoveries to the Veidnes oil terminal,” Statoil’s Michelsen suggests.

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Major MMO-investments ahead

MMO

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Photo: Anette Westgard, Statoil

MMO

Much more work but lower margins The oil boom is going to create major problems for many companies trying to get bigger. “Those who do not have a plan to grow will end up working more and earning less,” says procurement expert Atle Sundøy at Norwegian procurement specialist and consultancy Inventura.

potential. They can end up realising things could get worse than a lot of extra work.

Losing control

“One should keep in mind that we have some special conditions in contracts for work on the Norwegian Continental Shelf. There is a tradition of moving risk onto the supplier and it is fine as long as you have control of the risk. But if one enters into agreements that one cannot perform it could mean the end for some, possibly to be eaten by the bigger ones,” continues Sundøy.

Sundøy thinks the biggest companies have probably prepared well for growth. But the smaller ones could be thrown into deep waters through new contracts and increased workloads. “Many companies will find that they lack control of infrastructure such as logistics and IT services, but also people. It results in error, long work nights - but less profits,” says Sundøy. These issues will appear soon and not only in the longer term. When all 2012 results are published, Sundøy expects many companies will be presenting increased sales, but without higher profits. “We see that many small companies want to double or triple their turnover and there is certainly enough work to achieve this. But they do not have a plan to identify bottlenecks so that one is able to scale up operations and ensure margins. What is the point of growing if you do not earn more money?” he asks.

New and without experience In addition to the companies already established in the oil industry and growing from the boom, some new businesses will recognise the huge

It can mean end of businesses.

No winners Statoil has already expressed its concern about the cost level on the Norwegian Continental Shelf. “Soon the cost problem will affect our chance to be competitive. We have extremely good suppliers, but when we compete for international contracts, I am concerned that we have too high cost levels. It is neither in the companies or Norway’s benefit,” Statoil’s chief executive Helge Lund has said. “No one benefits from chaos in the oil industry and when you cannot deliver as agreed. When things get too expensive money ends up in everything else other than what the oil companies wants, which is increased efficiency and production. Such a situation has no winners,” summarises Sundøy.

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All set for another contract rush The battle over major framework agreements is underway. Norwegian suppliers are preparing themselves for an all-time struggle to win contracts worth billions kroner on the Norwegian Continental Shelf.

Two major categories Providers of services in maintenance, modification, insulation, scaffolding, surface treatment are all entering some very exciting months. The backdrop and the question is what happens to the major framework contracts within the two main segments MMO - maintenance, modifications and operations - and ISS - insulation, scaffolding and surface. The contracts have an estimated value of 48 billion (US $7.88 bn) according to a review by Offshore.no. And next year we will get the answer to the question of whether the oil companies choose to exercise the options included in the majority of the deals, or if the agreements are sent out to tender.

Next summer Statoil has the largest portfolio of platforms and systems that needs such services. They carried a giant audit in the summer of 2010 that set a new standard for the allocation of framework contracts. The MMO contracts which were awarded were worth NOK 49 billion (US $8.04 bn), including options. Within ISS, the sum was NOK 12 billion (US $1.97 bn) including options. These Statoil deals are ending next summer, but have options for further extensions. Since the awards we have heard almost nothing more about the MMO contracts for Statoil. But within the ISS market, the picture has changed fundamentally in the agreement. It started with the STS Group which did not receive any payments in summer 2010. But then, in autumn 2012, Kaefer Energy and Statoil agreed to terminate contracts for Statfjord and Mongstad. Beerenberg got Statfjord, while the STS group got Mongstad. Thus they became the sixth player in this segment. According to figures from Offshore.no a rush of contract decisions is due in 2014, while in 2015 there are four due, two in 2016, two in 2017 and two in 2018.

MMO

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Field

Operator

ISO

ISO expires

HOD

BP Norge

BIS Industrier

2014

SKARV

BP Norge

BIS Industrier

2014

TAMBAR

BP Norge

BIS Industrier

2014

TAMBAR ØST

BP Norge

BIS Industrier

2014

ULA

BP Norge

BIS Industrier

2014

VALHALL

BP Norge

BIS Industrier

2014

EKOFISK

ConocoPhillips

Beerenberg

2015

ELDFISK

ConocoPhillips

Beerenberg

2015

DRAUGEN

Norske Shell

Linjebygg Offshore

ORMEN LANGE

Norske Shell

Linjebygg Offshore

ÅSGARD

Statoil

Kaefer Energy

BRAGE

Statoil

BIS Industrier

GRANE

Statoil

Beerenberg Corp

GULLFAKS

Statoil

Beerenberg Corp

GULLFAKS SØR

Statoil

Beerenberg Corp

HEIDRUN

Statoil

Linjebygg AS

HEIMDAL

Statoil

BIS Industrier

HULDRA

Statoil

BIS Industrier

KRISTIN

Statoil

Kaefer Energy

KVITEBJØRN

Statoil

Beerenberg Corp

NJORD

Statoil

Linjebygg AS

NORNE

Statoil

Linjebygg AS

OSEBERG

Statoil

BIS Industrier

OSEBERG ØST

Statoil

BIS Industrier

OSEBERG SØR

Statoil

BIS Industrier

SLEIPNER ØST

Statoil

BIS Industrier

SLEIPNER VEST

Statoil

BIS Industrier

SNØHVIT

Statoil

BIS Industrier

SNORRE

Statoil

BIS Industrier

STATFJORD

Statoil

Beerenberg

STATFJORD NORD

Statoil

Beerenberg

STATFJORD ØST

Statoil

Beerenberg

TROLL

Statoil

Kaefer Energy

VESLEFRIKK

Statoil

BIS Industrier

VISUND

Statoil

Beerenberg Corp

VISUND SØR

Statoil

Beerenberg Corp

BLANE

Talisman North Sea

Sørco

ENOCH

Talisman North Sea

Sørco

GYDA

Talisman North Sea

BIS Industrier

REV

Talisman North Sea

Sørco

VARG

Talisman North Sea

BIS Industrier

2013

MMO

Major maintainance and modification contracts in Norway Company

Operator

Field

Contract value/NOK

Ends

Options

Aker Solutions

Ula, Valhall, Skarv, Hod, Tambar

0,8 -1,2 billion

April-14

Aibel

Statoil

Statfjord A/B/C,

8-9 billion.

July-14

2+2

4,4 billion

July-14

2+2

Oseberg F/C/Ø/S Huldra/Veslefrikk Njord A/B, Kristin,Norne, Snøhvit, Kollsnes, Kårstø, Sture Aker Solutions

Statoil

Snorre A/B, Gullfaks A/B/C Visund, Åsgard A/B

Apply Sørco

Statoil

Kvitebjørn, Brage

1 billion

July-14

2+2

Fabricom

Statoil

Sleipner

1,6-2 billion

July-14

2+2

Reintertsen

Statoil

Troll A/B/C

4 billion

July-14

2+2

Heimdal, Grane, Heidrun Aker Solutions

Talisman

Yme, Gyda

0,9 billion

Dec-14

Apply Sørco

Eni

Goliat (vedlikehold/drift)

150 million

Sept-15

2+2

Apply Sørco

Eni

Goliat

1 billion

Dec-15

2+2

Aibel

ConocoPhillips

Ekofisk

4 billion

March-16

3+3

Fabricom

Marathon

Alvheim

500 million

Dec-16

1+1

Fabricom

GDF Suez

Gjøa

500 million

March-17

2+2

Aker Solutions

ExxonMobil

Balder, Jotun A, Jotun B, Ringhorne

1 billion

Oct-17

5+5

Aibel

A/S Norske Shell

Draugen

6 billion

Feb-18

2+2

Kværner

A/S Norske Shell

Nyhamna/Ormen Lange

11 billion

April-18

2+2

Major insulation, scaffolding and surface treatment contracts in Norway Company

Operator

Field

Kaefer Energy AS

Statoil

Statfjord A/B/C*

Contract value/NOK

Ends

Options

610 million

July-14

2+2

550 million

July-14

2+2

200 million

July-14

2+2

140 million

July-14

2+2

300 million

April-14

Troll A/B/C, Kristin Åsgard A/B, Mongstad*

* ended Jan. 2013

BIS Industrier AS

Statoil

Snorre A/B, Sleipner Oseberg F/C/Ø/S Heimdal, Huldra Veslefrikk, Brage Sture, Kollsnes Kalundborg

Beerenberg Corp. AS

Statoil

** from Jan. 2013

Linjebygg AS

Grane, Kvitebjørn, Statfjord A/B/C** Visund, Gullfaks A/B/C

Statoil

Njord A/B, Heidrun Njorne

BIS Industrier AS

HOD, SKARV, TAMBAR TAMBAR ØST, ULA VALHALL

Beerenberg Corp. AS

ConocoPhillips

Ekofisk, Eldfisk

2015

BIS Industrier AS

Talisman

Gyda, Varg

Dec-15

2+2

STS Gruppen

Statoil

Mongstad, fra feb. 2013

Feb-17

2+2

400 million

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Investing NOK 83 billion over 40 years In 2011 they celebrated the first 40 years of production. Now they are aiming for another 40 at Ekofisk. Operator ConocoPhillips has huge plans for the Ekofisk South and Eldfisk II projects. In the coming years, investments totalling around NOK 83 billion (US $13.54 bn) will be made in the Greater Ekofisk Area. In addition to the Ekofisk South and Eldfisk II projects, a new accommodation platform and a field centre platform, Ekofisk 2/4 L, are being built. The projects also include modification of existing platforms and infrastructure. New pipelines are being laid and the drilling of many new wells will contribute to continued value creation on Norwayâ&#x20AC;&#x2122;s pioneering field in the North Sea. In total over 80 new wells will be drilled to gain up to 500 million boe of additional reserves by 2028. Since first oil back in 1971 the field has produced 5,4 billion boe worth NOK 1791 billion (US $292 bn). This is how ConocoPhillips will redevelop the area:

The Ekofisk area getting ready for another 40 years. Photo: ConocoPhillips

Ekofisk 2/4 L A new accommodation and field centre platform is an important part of the renewal of the Ekofisk Complex and the area in general. The new platform will replace the existing accommodation platforms Ekofisk 2/4 H and 2/4 Q, as well as the chartered accommodation rig. With its 552 single-bedded cabins, Ekofisk 2/4 L will be the largest hotel platform in the North Sea. The platform will also house a number of field centre functions and systems. It will be also handle air and sea traffic control. The platform will house offices, helicopter hangars, a hospital, a cafeteria and recreational areas, as well. Travel to and from the Ekofisk Complex will also go via Ekofisk 2/4 L.

Ekofisk South The project includes the wellhead platform Ekofisk 2/4 Z, and the subsea facility Ekofisk 2/4 VB. A total of 44 new wells are to be drilled and a new water transport pipeline will be installed. The purpose is to have more production wells enter operations and to expand the water injection capacity. The topside is being constructed by Aker Egersund and will be installed this year (2013). Ekofisk 2/4 VB is located on the seabed three kilometres south of the Ekofisk Complex.

Eldfisk II This is a new integrated platform with wellhead and processing facilities, 40 new wells and 154 cabins. The platform will be connected to the Eldfisk Complex by a bridge. Other main elements include a new local equipment room, new pipelines, new electricity cable and umbilical, as well as extensive modifications to existing facilities and infrastructure. The purpose of the Eldfisk II project is to increase recovery rates and maintain safe and stable production, as well as to continue operation of the remotely operated Embla field, tied in to Eldfisk via a pipeline. The project is a further development of infrastructure in an area that is already well developed, and which has been in continuous operation since 1979. The current Eldfisk field produces from 44 wells. Eldfisk II will increase the recovery rate from the Eldfisk field from 22 to 28.5%. The jacket for Eldfisk 2/7 S is being built by Dragados in Cadiz, Spain and the topsides are being constructed by Aker Stord.

MMO Ekofisk South facts

Ekofisk ii facts

Ekofisk 2/4 L facts Height: 110 metres (jacket) 60 metres (topsides). Helicopter deck in addition 552 beds, all in single cabins Office facilities

Ekofisk 2/7 S facts

Hospital, cafeteria and recreational areas Centre for preparedness and safety functions, including fire water provision. Two helicopter hangars Helicopter deck with a capacity of 50 departures and arrivals daily 10 free fall lifeboats, each with 70 seats Workshop and warehouse Interior floor space 15,000 square metres (Source: ConocoPhillips)

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Bilfinger Karsten Moholt AS Maskin K Lund Scanmatic STS gruppen Pepperl + Fuchs OTD

Company Profiles MMO

ENGINEERING LAMBDA PRODUCTSM M O

123

SURFACE TREATMENT

ARCHITECTURAL OUTFITTING

SCAFFOLDING

OFFSHORE

MAINTENANCE

ROPE ACCESS

INSULATION

ONSHORE

PASSIVE FIRE PROTECTION MODIFICATIONS

PROJECT MANAGEMENT

WE MAKE YOUR BUSINESS

By taking care of everything else, we ensure that our clients can concentrate on what they do best: their core business. Bilfinger (formerly BIS) is one of Norway’s leading service providers to the oil and gas industry. To find out what we can do for your business, and job opportunities: www.industrier.bilfinger.com

WORK

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K a rsten M o h o lt 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 210 highly qualified employees in various fields. Karsten Moholt provides a 24hr service around the world.

P hone : + 4 7 5 5 9 4 3 4 0 0

A D d r ess : M i c h a e l K r o h n s g t .

FA X : + 4 7 5 5 9 4 3 4 3 5

86, 5057 Bergen, Norway

firmapost@kmoas.no

M ail A d D r ess : P O 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 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 and modifications 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 me chanics that can carry out services on Zone 1 and Zone 2 forklifts. Karsten Moholt can also modify non-zone forklifts to Zone 1 and Zone 2.

Engineering 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.

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.

Hydraulikk verktøy og løsninger for offshore industrien

MMO

Enerpac leverer en komplett serie kraftig kvalitetsverktøy og løfte hydraulikk som er utviklet for å øke produktivitet, samtidig som arbeidsplassen gjøres tryggere. Enerpacs produkter er testet i henhold til strenge standarder som garanterer kravene for kvalitet og ytelse.

OSLO: Stålfjæra 11, P.b. 21 Kalbakken, 0901 Oslo - Tlf. 22 90 02 00 • BERGEN: Midttunhaugen 17, 5224 Nesttun - Tlf. 55 22 63 00 ÅLESUND: Mausavågvegen 16, 6036 Mauseidvåg - Tlf. 70 19 18 00 • KRISTIANSAND: 47 48 67 63 • GRENLAND: 40 76 37 03 • Mail: firmapost@mkl.no

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S c a nm ati c AS Scanmatic; provides tailor made instrumentation and sensor technology applications.

P hone : + 4 7 3 7 0 5 9 5 0 0 fax : + 4 7 3 7 0 3 4 6 7 8

A D d r ess : K i l s u n d , 4 9 2 0 Staubø, Arendal, Nor way

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

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.

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.

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.

Certifications:

Applications supplied: •

Stolt Offshore LB200: Remote monitoring & control system (Scada & sensors) • Archer: Atex Zone 1 wireless remote control system (radio and Ex technology) • Statoil ASA: Navigation Assistance System for Lifeboats (Autonomous Gyro System) • National Oilwell Warco: ATEX zone 1 Internal and External Hose monitoring system (Camera , RFID and streaming technology) • Bluewater: AEx Turntable / Riser Buoy Heading Control System (Gyro system) Scanmatic supplies turnkey solutions securing

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

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

We offer: • •

Development projects (HW/SW) Pre studies

• • • • • • • • • • •

Prototypes Integration projects Finished product Our Services: Engineering System design Logistics & production Installation & commissioning Service & support Operation & Maintenance Consulting assignments

MMO

S T S - g ru p p en StS gruppen is a recognised supplier of multidisciplinary services within maintenance and modification. Besides Insulation, Surface Treatment, and Scaffolding, the company offers specialist services such as engineering and inspection (NDT, Frosio and insulation inspections). StS gruppen is also a well-established global provider of positive pressure habitats, that allow the execution of hot work in areas otherwise considered hazardous.

P hone : + 4 7 5 5 2 0 8 0 0 0 FA X : + + 4 7 5 5 2 0 8 0 0 1

A D d r ess : K a n a l v e i e n 5 2 , 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 ail A d D r ess : P O 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

Inspection services

Fail safe

StS offers the complete range of NDT method, weld inspection and FROSIO surface treatment and insulation inspections.

Constant monitoring of critical conditions inside and outside the habitat, such as tem¬pera ture, pressure and gas concentrations

Surveys Condition monitoring Certified Inspections with rope access skills

Positive pressure habitats – safe execution of hot work In close cooperation with its suppliers, StS has developed the most advanced technology for hot work enclosures available worldwide.

Automatic habitat shutdown system Optional battery backup system Certified operators

Insulation Products StS has developed its own range of insulation products: ansaTekt – thermal insulation products ansaDur – acoustic insulation products.

The most recent addtion to the range is a lightweight nose reduction pamels system specifically designed for the the oil and gas industry

Additional services Rope Access Rigging Job training Supervision

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15 Stavanger, Norway (22)-23-24 October 2013

Visitors

Exhibitors

25.000

510 540

27.500

480

25.000

420

22.500

360

20.000

300

17.500

240

15.000

180

12.500

120

10.000

2010

2011

2012

2010

2013

3.000

2012

2013

90% increase since 2010

131% increase since 2010

Young Professionals

2011

Speed Networking

410

Booked stands

488 510

3.520

430

3.080

410

2.640

390

2.200

370

1.760

350

1.320

330

180

880

310

120

440

290 2010

2011

2012

2013

600% increase since 2010

480 420 360 300 240

2010

2011

2012

2013

33% increase since 2010

2013

22 available stands per 12.June 2013

MMO

Pe p p erl+ F u ch s Pepperl+Fuchs is a leading developer and manufacturer of electronic sensors and components for the global automation market.

P hone : + 4 7 3 5 5 7 3 8 0 0 fax : + 4 7 3 5 5 7 3 8 4 9

A D d r ess : F r e d n e s Ă¸ y a 2 1 , 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 A I L A D d r ess : P O B O X 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 5.300 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 infrastruc-

ture 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.

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Decommissioning The next market

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Photo: AF Gruppen

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Statfjord A. Photo: Harald Pettersen, Statoil.

decommissioning

Preparing for the end Norway is no stranger to the subject of decommissioning after a number of steel and concrete platforms have been abandoned and some removed in recent years. This year and next, more structures are in line for abandonment, starting with the H7 gas compression platform in the German sector of the North Sea, and the B11 gas compression facility on the Norpipe system. While Statoil is starting to plan decommissioning at one of Norway’s giant installations, Statfjord A, and is preparing to abandon other facilities too. For years the removal of redundant structures in the North Sea has been talked about and discussed and decommissioning remains an ongoing concern for operators and joint venture partners alike with a heavy cost commitment to be met. After completion of some major decommissioning projects offshore Noway – notably the Ekofisk I complex, Frigg, as well as decommissioning at Yme in 2000, Tommeliten Gamma in the late 1990s, and abandonment at Odin, this long term market sector is moving again: Members of Norway’s Gassled joint venture which owns most of the pipelines on the Norwegian Continental Shelf, approved a recommendation from pipeline operator Gassco to remove the B11 steel compression platform from the Norpipe network at the end of 2012. The H7 booster platform was being removed from the German sector of the North Sea this year (2013). A F Decom Offshore secured a contract for removal of H7 with an option for B11. During the summer of 2013, the contractor was already carrying out abandonment at the H7 platform, in the German North Sea, using Swire Blue Ocean’s Pacific Orca and Pacific Osprey jackup vessels for removal of the topsides and steel jacket with a combined weight of approximately 8,000 tonnes. Once jacket removal was completed – the contract with platform owner Gassco and service provider Statoil was won on the basis of combining piece small removal and reverse installation techniques – the H7 facilities were taken ashore for disposal at Vats, near Haugesund. Removal of B11 under a contract worth up to NOK 500 million (US $83.16 m) is scheduled for 2015. Stavanger-based Deep C was part of the H7 abandonment team, provide its Deep C subsea excavator and subsea dredge tools to excavate the seabed around the H7 installation. AF Decom Offshore is no stranger to North Sea decommissioning projects. Under a NOK 230 million (US $40 m) contract with Shell UK Limited between September 2008 and December 2010 it executed removal of Shell’s UK Inde field platforms, involving pre-lifting work, removal of six topsides and jackets and dismantling. This involved 3,300 tons of scrap steel which was taken ashore to the UK port of Great Yarmouth for further processing. A material recycling figure of 98% was achieved. It has also been involved in topsides removal of the Ekofisk 2/4 facility, removing the Kittiwake field and Statfjord A loading buoys, and worked on the Ekofisk Cessation project, with Heerema Marine Contractors, involving removal of ten installations for operator ConocoPhillips.

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Concrete

Norway has a lot of facilities to abandon: Currentfacilities facilities on NCS type and Current on by NCS byweight type and weight: Category

Number

Weight (metric tonnes)

Concrete

480,000 (topsides) + 4,600,000 (concrete substructures)

Fixed steel

Therefore it looks likely that the Norwegian authorities will seek derogation from Ofspar decision 98/3 – the regulatory body covering offshore decommissioning which mandates total removal of all offshore structures – for concrete installations. Norway’s Storting (parliament) has already granted exceptions for two installations - the Ekofisk tank and its protective concrete barrier, and the concrete substructure on the Frigg TCP2 module.

1,000,000

Floating (not concrete)

715,000

Subsea

348

118,000

Type

A joint report published in March 2012 from three Norwegian agencies – the Norwegian Petroleum Directorate (NPD) the Climate and Pollution Agency (Klif) and the Petroleum Safety Authority (PSA) on technological challenges for disposal of concrete faciltiies on the Norwegian Continental Shelf concluded “...that abandonment of the concrete facilities offshore could have fewer consequences for health and environment than landing the facilities for dismantling and material recovery.”

No of installations 2010-2015 / 2015-2020

Steel jacket

Floating

Concrete gravity base

FPSOs

Source: Norwegian Climate and Pollution Agency “Decommissioning of offshore installations” February 2011

Structures from Ekofisk weighing a total of 108,000 tonnes are already being decommissioned by AF Decom at Vats, which is due to complete this work in 2015. At Stord, parts of the Frigg platforms are still being handled, with 90,000 tonnes decommissioned there. Waste recycling in both instances is around 98%. AF Decom is also gearing up for more activity with its new UK facility at Dales Voe in the Shetland Islands. Huldra, in PL051 and 052B is due to cease production in 2014 and an impact assessment study is underway for decommissioning there. Huldra was developed as a high pressure high temperature field 15 kilometres north-west of Veslefrikk and 28 km north of Oseberg, and started producing in November 2001. Production is expected to continue to 2014 or 2015. A compression module and a living quarters module have been added to the normally unattended fixed steel platform since start-up. Originally topsides weighed 4,700 tonnes and operator Statoil indicates in a Huldra sales brochure that the facility could continue functioning several years beyond its 20-year design life without major expenditure other than normal maintenance. Another study is underway for decommissioning at Volve, in PL046, developed with a steel platform and the Navion Saga vessel providing oil storage. Here, drilling templates, pipelines, risers and a mooring system are also to be decommissioned. Statoil indicates that Volve, onstream since 2008, is now producing less and is forecast to cease production by October 2015. Removal of the single point mooring system on Statfjord C has also been considered by the Ministry of Petroleum and Energy. Furthermore, Statoil is also carrying out selected decommissioning at other sites. At Heimdal, which is now set to

decommissioning

remain in operation as a gas hub until at least 2030 after it was initially considered for shutdown in 2014, planning is underway to plug and abandon 12 Heimdal production wells under a US $115 million contract won by well contractor Archer which is to commence in the second half of 2014. Here, Archer will plug and abandon wells using a new modular rig, the Archer Topaz, which marks a North Sea first. Developed with German manufacturer Max Streicher under NORSOK regulations, the Archer Topaz has been designed specifically for the Heimdal operation. “This modular rig contract for Archer in the North Sea represents an important strategic move in the direction of offshore plugging and abandonment solutions,” declared Kjetil Bjørnson, Archer’s president and general manager for the North Sea region when the contract was won in February 2013. He said the new unit combines flexibility, efficiency, as well as short rigup and rig-down time, making it unique for both for plug and abandonment services and production drilling applications on fixed platforms. Norway could become a North Sea decommissioning centre too, due to

its specialist facilities at Vats and and Stord which are available for onshore dismantling. “In considering total decommissioning capacity in the years ahead, developments in other countries around the North Sea must also be taken into account. So far, there is a tendency for other countries to look at capacity in Norway because the Norwegian facilities have the advantage of deep fjords and deep-water quays, and can therefore be used by deep-draught installations,” the February 2011 Klif report notes. Already 20 UK installations have been imported to Norway for decommissioning, including the Maureen Alpha platform which was towed to and dismantled at Stord, and more recently the loading buoy from Shell’s Kittiwake field came to Vats. With a 2005 estimate of 815 installations in the North Sea – 447 in the UK, 160 in The Netherlands, 49 in Denmark, five in Ireland and three in Germany, there is ample scope for more North Sea platforms to arrive in Norway for dismantling.

Sources: Statoil, AF Decom Offshore, Klif, NPD

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Oil Companies

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Ekofisk

ATLANTIC PETROLEUM Atlantic Petroleum is a Faroese independent exploration and production company with oil and gas interests in the North Sea, the Celtic Sea and on the Faroese Continental Shelf. Entered the NCS through the acquisition of Emergy Exploration in 2012.

Bayerngas Norge One of the fastest growing oil and gas companies on the NCS. An independent and value-driven company with activities in Norway, Denmark and the UK. Their main goal is to provide Germany, Austria and Switzerland with natural gas. Bought PA Resources´ Norwegian subsidiary in 2008 and Genesis Petroleum in 2010.

BG Entered Norway in 2003 and now has 12 licenses in four core areas. Has put Gaupe into production and are currently developing the Knarr field. The Bream field is expected to follow shortly.

BP Has a significant and long term activity in Norway. BP Norge operates five fields on the Norwegian Continental Shelf, with Valhall, Hod and Skarv as main assets.

Bridge Energy A Norwegian registered E&P company with assets in Norway and the UK. The company aim for growth with production and development in the UK and have substantial exploration potential in both Norway and the UK. Bridge Energy is listed on the Oslo Stock Exchange.

Cairn Energy Entered the NCS through the acquisition of Agora Oil & Gas in 2012, and are 20 per cent partner at the Skarfjell discovery.

Centrica Centrica Energi was established in 2006 as part of a strategy to grow the upstream oil and gas business in Centrica. Has a strong connection to the

UK gas marked, and a position in Norway will secure gas deliveries to this market. Partner in Statfjord, Kvitebjørn, Heimdal and Valemon, among others.

Chevron Chevron has major operations in the world’s most important oil and gas regions. The Norway subsidiary is partner in the Draugen license.

Concedo Is a Norwegian exploration-driven oil company. The value of prospects is to be realised after discovery or appraisal drilling and before field development commences. Has sold it´s Maria, Galtvort and Gygrid discoveries.

ConocoPhillips One of the largest foreign operators on the Norwegian continental shelf. The net production in Norway for 2011 was approximately 147,000 boe per day. The company is the operator of the fields in the Greater Ekofisk Area and also has assets in fields operated by co-venturers, including Heidrun, Visund, Oseberg, Troll, Grane, Alvheim and Huldra.

Core Energy Established with the aim of capturing the value potential in and around producing oil and gas fields. Recently bought into the Njord field and the Bøyla development project.

Det norske oljeselskap Now a fully fledged oil company with exploration, development and operation. Producing at Jette, developing Ivar Aasen and a partner in the Johan Sverdrup license. Formerly part of DNO. Aker Exploration was merged into Det norske in 2009.

Dong Energy DONG E&P Norway holds license interests in 37 licenses on the NCS. Producing from 14 of the licenses – 8 fields. 23 fields are still in the explo-

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Seismic. Photo: Exxonmobil

ration and development phase. Bought the Norwegian oil company Pelican in 2001 and took over Front Exploration in 2012.

Edison Present in Norway with 13 exploration licenses and a partner in the Skarfjell and Zidane discoveries.

ENI Eni Norge has interests in 54 licenses, of which it is operator in fourteen. The company´s first operated field production – Marulk came on stream in April 2012, and Goliat is under development with planned production start up third quarter 2014. Formerly known as Agip.

E.ON Since its start in 2003, E.ON E&P has had strong production growth in Norway through interests in the Skarv, Njord and Hyme fields. Is currently building a global exploration team in Stavanger and London.

Explora Petroleum Focuses exclusively on exploration on the Norwegian Continental Shelf. Explora Petroleum is funded by the management team and a group of institutional investors lead by Warburg Pincus.

ExxonMobil Is, after Statoil and Petoro, the largest oil and gas producer on the NCS holding ownership interests in approximately 25 producing oil and gas fields. ExxonMobil operates the Balder, Jotun, Ringhorne, and Sigyn fields. Total production in Norway in 2011 reached around 315,000 boe per day.

Faroe Petroleum Focusing principally on exploration, appraisal and production opportuni-

ties in the Atlantic Margin, the North Sea and Norway. The Company currently has four principal producing interests in the UK and Norway, including interests in the Blane oil field and Schooner gas field in the UK, and interests in the producing Njord, Brage and Ringhorne East fields in Norway.

Fortis Petroleum Founded in April 2010, the company will focus on creating value via exploration by utilising geophysical technology to identify and de-risk prospects. Took over Excel Expro Norge in 2010.

GDF Suez GDF Suez E&P Norge is a wholly-owned affiliate of GDF Suez, present in Norway since 2001. The company is operator of the Gjøa field, partner in several fields on the Norwegian Continental Shelf, and their asset portfolio is growing.

Hess Hess has been a competitor in the Norwegian oil and gas sector since activity began in 1965. Over the last years the company has invested significantly in Valhall to increase recoverable reserves and sustain profitable production.

Idemitsu A subsidiary of the Idemitsu group, one of Japan’s largest energy corporations. Entered the NCS in 1989 by acquiring a stake in the Snorre field.

Ithaca Energy The company´s objectives is to appraise and develop existing discoveries and to explore new areas employing tried and tested technologies. Took over Valiant Petroleum in 2013.

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KNOC Korea National Oil Corporation (KNOC) entered the NCS through the acquisition of Dana Petroleum in 2010. A partner in the Jotun field and also has a 10 per cent interest in the Centrica-operated Fulla gas/condensate discovery which are both being evaluated for development.

Kuwait Petroleum Corporation Operating in Norway under the name Norske AEDC, which until 2013 was owned by the japanese company AOC Holdings. A partner at the Gyda and Yme fields.

Lotos Has been involved in two wells on the NCS in 2012/13. One as operator – Skagen and Geite. Both wells proved dry.

Lundin Petroleum Probably Norway´s greatest exploration success. With the current pipeline of ongoing development projects, Lundin Petroleum is on-track to double its current production by late 2015 when the Edvard Grieg field in Norway is scheduled to come onstream. Lundin Petroleum has contingent resources of 851 MMboe with the majority of the contingent resources relating to the giant Johan Sverdrup discovery.

Maersk Maersk Oil entered Norway in 2004. By early 2012 the organization counted 60 employees in the Stavanger office. Has a 20 per cent interest in license 501 which combined with the neighbouring Aldous, makes up the giant Johan Sverdrup discovery.

Marathon Oil In 2010, production from the company´s assets in Norway represented 43 percent of Marathon’s total international liquids sales. Operates Alvheim, Vilje and Volund and the development project Bøyla.

Noreco A publicly owned, independent E&P company with focus on exploration, development and production of oil and gas in the North Sea region. A partner at the Oselvar field took over Altinex in 2007.

North Energy As a Northern Norwegian company, North Energy is especially interested in the Barents Sea. Cooperating with Lime Petroleum and Rex Oil and Gas. Took over 4sea Energy in 2010.

OMV The Austrian company acquired a 15 per cent stake in the Aasta Hansteen gas field development and a 20 per cent stake in the Edvard Grieg oil field development in 2012. Also a partner at the Zidane gas discovery.

Petoro Manages the Norwegian government´s large holdings in oil and gas licenses on Norway’s continental shelf through the State’s Direct Financial Interest (SDFI).

Petrolia Petrolia Norway aim to maximizes field potential through innovative exploration and increased oil recovery technology from mature areas. The

company is fully owned by Petrolia E&P Holdings SE, and listed on the Oslo Stock Exchange.

PGNiG An operator of one exploration license and a licensee on several others on the NCS. Also participated in one of the biggest oil & gas development projects in Norway this decade - the Skarv field.

Premier Oil Took the decision to develop a business in Norway in 2005. The Group now has a portfolio of four potential developments including two discoveries (Blåbær and Grosbeak) and a spread of further exploration opportunities.

Repsol Has acquired participation rights in 13 licenses in the North Sea, Norwegian Sea and Barents Sea areas. Of these 13, Repsol is the operator in four of them.

Rocksource The Company’s goal is to take part in commercial discoveries, divest and re-allocate funds towards new exploration opportunities. Rocksource has currently one discovery on the NCS in their portfolio; The Norvarg gas discovery in the Barents Sea.

RWE Dea Has interests in several producing fields and have participated in five of the most important recent discoveries on the Norwegian continental shelf; Edvard Grieg, Knarr, Titan, Zidane and Skarfjell. Is in the process of

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Gjøa illustration. Photo: Statoil

becoming an operator of fields in development and production.

Shell Present on the NCS since 1964. Operates Draugen and Ormen Lange Europe’s third largest gas field.

Skagen44 Was founded in May 2006 and concentrated all its activities on the NCS. The company is partner in 14 licenses on the NCS.

Skeie Energy Founded in 2007 and holds interests in two licensees in Norway. Controlled by the Skeie Group. Took over Noble Energy in 2008.

Statoil The leading operator, with some 80 per cent of all production of oil and gas, on the NCS. Operates major fields as Statfjord, Snorre, Troll, Snøhvit, Heidrun as well as the new giants Johan Castberg and Johan Sverdrup.

Suncor Energy Suncor entered the NCS when Petro-Canada was bought in 2009. Is currently parter in 14 licenses in Norway. The company is operator in six of these.

Svenska A privately held Swedish company engaged in the business of finding and producing oil and gas. Svenska is a partner in 16 licenses in Norway.

Talisman Energy The company operates the Gyda, Varg, Yme, Rev and Blane fields, and holds ownership interests in several other producing fields. Has a production of about 20,000 barrels daily. Bought Paladin Recources in 2005.

Total Produced on average 287,000 boe every day in 2011 and are in the process of strengthening their position as a field operator on the NCS. Production started on the Atla field in October 2012, and Martin Linge will be developed as a standalone platform. An ownership interest of 39.9 per cent in Ekofisk makes this Total’s largest source of income in Norway.

Tullow Oil Entered the NCS through the acquisition of exploration company Spring Energy in 2012, a deal which provided Tullow with access to 28 offshore licenses across Norway’s continental shelf. Spring has previously divested in the Maria, Grosbeak, Bream and Beta discoveries.

VNG Was established in 2006, and today, VNG Norge has ownership interests in 33 licenses on the NCS. A partner in the producing fields Brage, Njord and Hyme. Took over Endeavour Energy´s Norwegian subsdiary in 2009.

Wintershall One of the most successful exploration companies on the Norwegian Shelf with the Maria, Skarfjell and Grosbeak discoveries. Also a partner at Edvard Grieg and Knarr, both currently being developed. Entered the NCS through the acquisition of Revus in 2008. Owned by BASF.

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Cameron Kvale Advokatfirma RS online

Company Profiles Oil Companies

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KVALE ADVOKATFIRMA DA PO Box 1752, Vika – NO-0122 Oslo, Norway Tel: +47 22 47 97 00 – Fax: +47 21 05 85 85 Email: post@kvale – Website: www.kvale.no Contact persons: Jens Brede: Tel: + 47 901 74 409 – Email: jhb@kvale.no Yngve Bustnesli: Tel: + 47 993 35 757 – Email: ybu@kvale.no

KVALE ADVOKATFIRMA Kvale is a leading Norwegian commercial law firm founded in 1988. In the beginning, the firm’s main focus was DA the petroleum and energy business. Today, Kvale, with a total of approximately 65 lawyers, has Vika evolved into a top tier firm that pro- Norway PO Box 1752, – NO-0122 Oslo, vides services within all areas of business law. Throughout the years since its inception Kvale has shown consistent organic Tel: +47 22 47 97 00 – Fax: +47 21 05 85 85 growth

Email: post@kvale – Website: www.kvale.no

Oil & Gas 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, Total E&P Norge AS, Atlantic Petroleum Norge AS, Ithaca Petroleum Norge AS and the Norwegian Petroleum Directorate.

Bustnesli is one of the co-authors to the reference book on Norwegian Petroleum Law published in January 2010. The team was strenghtened in June 2013 when Erik Brannsten joined as a partner. He has extensive experience from domestic and international offshore construction projects, and is a leading lawyer within this field.

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

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 or licensees 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.

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.

Jens Brede was rated as Norway’s best oil & gas lawyer in 2010 (source: Best Lawyers), and Yngve Bustnesli is also highly recommended.

“Market sources admit themselves ‘tremendously impressed’ with the quality of the firm’s work.” Chambers and Partners

“Kvale Advokatfirma

Yngve Bustnesli: When Kvale is given an assignment, the firm DA is the best law evaluates, in close cooperation with the client, the Tel: + 47 993 35 757 – Email: ybu@kvale.no challenges of the case. Kvale sets up a team with Kvale’s Way of Working

firm in oil and gas sector, procurement and construction.”

Kvale is a leading Norwegian commercial law firm founded in 1988. In the beginning, the firm Legal500 main focus was the petroleum and energy business. Today, Kvale, with a total of approximate (Quotations from legal rating bureaus) 65 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.

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gå online og få de brands du stoler på! Et bredt spekter av automasjonsløsninger fra verdens ledende produsenter nå tilgjengelig på www.rsonline.no

www.rsonline.no

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JOB MARKET

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Job market

4000 rig workers needed

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Photo: Maersk Drilling

JOB MARKET

Wanted and needed In need of engineers Young people in Norway are fortunate in actually being able to consider choosing their careers on the basis of their personal interests. Norwegian Oil and Gas accordingly works closely with career advisers in schools and tries to ensure that this important group is informed about developments in this industry and how it assesses future demand for expertise. With a multitude of opportunities at home and abroad, helping todayâ&#x20AC;&#x2122;s youngsters to make well-considered choices is important. Companies and public administration institutions in Norway need a lot of engineers today and in the future, and the association accordingly wants systems that encourage young people to choose these subjects. Failing to do so could leave the country facing two problems: not enough engineers and unemployed youngsters.

Growing interest in science A total of 93,475 qualified applicants were offered places on Norwegian courses in July 2012. The subjects with the biggest increases from 2011 were economics and administration, technology and health. It looks as if the warnings of an engineering shortage have been picked up by young people â&#x20AC;&#x201C; engineering BSc courses saw a 25 percent increase in applications from 2011, and the number accepted was up 14 %. Engineering MSc students rose by 5.8 %. That means about 6,700 youngsters started a Bachelor of Science (BSc) or Master of Science (MSc) degree studies in 2012. At the same time, the annual company survey published by the Employment and Welfare Administration (NAV) last spring showed that Norway is short of 8,000 engineers and ICT specialists. So even a whole annual cohort of new graduates would not suffice to meet current requirements in this area. The shortage of engineers is also growing in step with investment on the Norwegian Continental Shelf. Demand for such personnel will probably go on increasing. (Source: Norwegian Oil and Gas)

Lacking workers Norwegian companies lack 37,500 workers, 11,300 of these in oil-related professions. The Norwegian engineer shortage is well known and widely discussed in the media, but the oil industry needs a lot more than just engineers. According to an Employment and Welfare Administration (NAV) business survey, Norwegian companies have a deficit of 11,300 people in oil-related

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Photo: Maersk Drilling

professions. More than engineers“The industry is growing rapidly. This growth has led to increasing staff requirements. This means not only engineers, but all support required to execute a project, for example in finance, HR, procurement and logistics,” says communication manager Andreas Helgesen at FMC Technologies. In recent years, the oil industry light over everything by engineers who can be to implement all the projects pending. But now comes possibilities also for many others, including economists. “Good training programs, ongoing challenges and international career opportunities are some of the key words,” says Helgesen. FMC Technologies has been repeatedly voted as the world leader in its field, most recently in the prestigious Fortune Magazine, which named FMC Technologies as the world’s best company among oil and gas service providers.

Atle Blomgren, senior researcher at IRIS, presented the analysis for petroleum education at a meeting in Stavanger organized by Tekna. “We have many more educational institutions that provide labour to the petroleum industry than they normally think about, and analysis shows that there are probably many that are interesting for the petroleum industry without even being aware of it,” says Blomgren. The report also shows that there is a big difference between operators and suppliers on how education departments are utilised. For example, the geosciences and petroleum engineering are clearly important subjects for the operators, while providers are focusing mostly on mechanical and electrical engineering. “Although the petroleum industry is not open to all the technologists, engineers or scientists, this shows that the industry makes use of far more professional categories than the ones we normally think of as petroleum-related,” says Blomgren.

Hunting for students

The capacity increases

The focus from several sources is now on students and young people in education. FMC Technologies had a student gathering in Bergen to meet possible future candidates. Here the students were given an introduction to professional competence, business presentations, subsea technology, and they were given an opportunity to meet staff from different departments, and ask questions about the industry as well as employment opportunities.

IRIS has also charted how many students there are in petroleum-related undergraduate and graduate programs at Norwegian universities and colleges. In 2011, 2,272 candidates on Master’s level graduated in petroleum-related subjects, approximately the same as in the peak year of 2005. “The analysis shows that the capacity of educational institutions is increasing, and both universities and regional colleges are contributing to this capacity increase,” says Blomgren.

“We hope this will ignite interest in the oil industry with even more students in many different disciplines that will be needed for the future, “ Helgesen says.

Overall, near 4,800 students were accepted for Master graduate programs in subjects related to petroleum last year. Among the universities NTNU is by far the largest with 1,354 new Master’s students. Runar Østebø, head of Tekna Oil and Gas, says that the report was given considerable attention among the many universities and industry partners who participated in presentation meeting in Stavanger. “The position analysis should be a useful reference for Tekna and relevant social partners in the ongoing work concerning higher education conditions,” he said.

Knowing that they are wanted A study conducted by IRIS on behalf of Tekna oil and gas, shows that over half of the subjects offered within Norwegian higher education are relevant for getting a job in the petroleum industry.

JOB MARKET 13 petroleum related professional categories Geology science HSE/safety Energy and environment Industrial economics and technology management Construction Physics/mathematics/ statistics Information and communication technology Marine and offshore technology Chemistry Electrical engineering and telecommunications Geosciences and petroleum engineering Mechanical engineering Engineering

These qualifications are needed right now

6,143 applicants for 66 positions

Other engineers: 2,000 Welders: 1,550 Engineers (petroleum, mining and metallurgy): 1,150 Industrial mechanics: 850 Electricians: 800 Construction engineering: 750 Electrical engineers: 700 Geologists and geophysicists: 400 Master of science (geology, petroleum, metallurgy): 400 Software developers: 400 Mechanical engineers: 350 Industrial economics and technology management technicians: 300

Ship machinists: 250 Deck officers: 250 Network and system engineers: 200

Recently Wintershall was running an extensive recruitment campaign and received a tremendous response with a total of 6,143 applications for 66 jobs. Wintershall had 27 vacancies available offshore, and 5,307 applications were submitted. For the 39 available onshore jobs in Stavanger and Bergen, the company received 836 applications. “This is absolutely fantastic numbers for us here at Wintershall. There are many people with high and appropriate expertise who have applied for the jobs, and we are already well underway to find the right candidates. We are really looking forward to meeting our new colleagues in Stavanger, Bergen and on Brage, “ human resources director Tone Samuelsen of Wintershall Norway said. The interest in finding a job in the company has been tremendous. The company was looking for labour for a variety of jobs, including geologists, geophysicists, technical personnel for rotating equipment, cranes and lifting experts, as well as HR. Wintershall has also announced administrative positions and a number of jobs offshore.

Drilling operators: 200 Leaders industrial economics and technology management: 100

Growing with Brage

Master of science (construction): 100

Wintershall Norway bought the Brage field from Statoil in 2012 with ambitions to take over as operator. This will make Brage the first production field on the Norwegian continental shelf with Wintershall as operator. The acquisition means Wintershall needs to increase its workforce from about 270 to 500 people by the end of 2013.

Master of science (mechanical): 100 Operators metal surface treatment: 100 Master of science (chemistry): 100 Chemical engineers: 50 Technical designers: 50 Supervisors industry: 50 Automation: 50 Professional divers: 50 Total: 11.300

Source: NAV

“During the fall, Wintershall started as an operator on Brage. We will acquire two-thirds of the workforce from Statoil there. The last third, we must recruit ourselves, and we are well underway now,” says Svein Ildgruben, head of communications and government affairs at Wintershall Norway. A total of 240 new people have been or will be employed in connection with Brage and to build the organisation around the Brage project, Wintershall is establishing a new office in Bergen.

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RIG WORKERS

For years Petoro has called out for more rigs on the Norwegian Continental Shelf. Now the rigs are either in place or on their way, and now the next challenge emerges. “The number of rigs has been a bottleneck. Now, this has improved, and Petoro alone has signed rig contracts for 35 billion Norwegian crowns. But how do these rigs get staffed?,” asks Kjell Pedersen, Director of Petoro AS.

work. “But we must ensure that we have the necessary capacity,” he said.“Will this not end up with the possibility of all the companies taking experienced staff and picking them, instead of collecting and training new ones?” he wonders. “It will still not solve the problem. We need 4,000 new workers. The only way to reduce that number is to get more out of those we already have. Maybe it means that some need to work more in a transition period? But then they of course have to be compensated for it,” says Pedersen.

From 36 to 51 rigs

Nothing to discuss

According to figures from Offshore.no the number of rigs operating offshore in Norway is going to increase from the current 36 to 51 rigs by 2015. The figures are based on current rigs with contracts in Norway, in addition to upcoming rigs to be on contracts in the next few years. In addition to the 51 rigs, there are a number of rigs that are relevant to the Norwegian continental shelf.

Discussing working arrangements? Forget it! The response from the union could hardly be clearer.“This is out of the question. We agree with Pedersen’s analysis of this challenge, but this must be solved by people working for longer periods, and with increased investment in apprentices and training of new crew,” says Martin Steen, head of communications in the Industri Energi union.

“This means that we need up to 4,000 new rig workers in addition to the 7,500 already in place. These people need to be recruited and trained. To do so, workers and employers have to work together. We also have to make sure to get as much as possible out of the 7,500 workers already in place, and then you should consider, among other things, the working arrangements,” says the Petoro director. And with this he is stepping into a minefield.

Claims the lack of personnel are significantly exaggerated: – Can deliver 900 rig workers a year

Where can we find 4,000 rig workers? “We need to discuss working arrangements,” says Petoro’s director. “Forget it,” responds the union, Industri Energi.

The rig committee, which was chaired by Eivind Reiten, identified working arrangements as one of two special Norwegian cost drivers. This got the unions to see red and the Norwegian Labour Party stepped in even before the hearing.

Good intentions Pedersen emphasises that he is not looking to reduce the costs. Nor does he think that offshore workers earn too much or do too little

The number of rigs on the NCS will increase from the current 34 to 51 in 2015. To staff these, 4,000 new rig workers needs to be recruited. Petoro director Kjell Pedersen is among those who have pointed to this as a potential bottleneck.

But not all share this concern. “The lack of rig workers is exaggerated. We alone can deliver 900 men a year with proper expertise, “says Per Svebak, Managing Director in Exsto Holding “In addition, competitors such as ITC and Nortrain have significant capacity. Pedersen is right when he says that traditional recruitment is not enough. To avoid the staffing crisis in the country’s main industry, we need to think outside the box. We are ready, but we feel that we are not as involved as public actors. We are never asked to participate in

JOB MARKET

discussions and we feel pushed out, despite the fact that we have a lot of answers and solutions,” adds Svebak, whose company Exsto Holding, is behind www.offshoreutdanning.no which offers training in drilling and well technology in eleven Norwegian cities. In addition to qualifying 900 people for work on the drill floor, his company has 2,500 participants on its different offshore courses. The teachers on the course work part-time and, according to Svebak, are associated with companies such as Statoil, Aker Drilling, Odfjell Drilling, Reinertsen, Schlumberger, Halliburton and and many others. “We have long experience with un-traditional collaboration across corporate limits,” he says.

Certificate or experience is demanded Norwegian Oil and Gas stressed that VG2 Well technology in Norwegian schools can qualify for jobs on rigs if, and only if, the candidate has the right certificate or the right experience. “The course is certainly OK, along with other similar courses. But the admission requirements must specify the necessity of a certificate in mechanical engineering, technical and industrial production, process - or electrical skills, or five years of relevant experience in these fields. There is no use in taking VG2 Well technology without this background. Then you will not be eligible to work on the rigs,” says Thina Hagen, communications manager for employment in Norwegian Oil and Gas.

Uncertain numbers Svebak emphasises that offshoreutdanning.no work according to the same guidelines as the Norwegian oil and gas, and that they inform potential students on the background required to qualify for a job on the drill floor. “A certificate in construction was removed from guidelines in 2008, but I know that some companies still accept this background,” say Svebak. But all may effectively enroll in the course.

How many take their courses without having the right certificate or experience in the bottom? “There are very few. I would say around three percent. Some have not read the requirements, or choose to take the risk despite these requirements. But the vast majority get the information they should have. – How many get a job after completing the course? “We do not know. We tried to find out, but received too few answers from the survey to be able to use the statistics. But our teachers meet many former students when they travel offshore,” says Svebak.

Can rent Ullrigg Many job applicants are finding that companies put out demands for offshore experience. Exsto has the opportunity to provide training on Ullrigg in Stavanger. This is not happening today, but Svebak hopes the industry sees the need and is willing to contribute economically to ensure the best possible candidates for the new rigs. “A four-day course will cost around US $28,000 per person. It is expensive for students, which in most cases pay the course fee themselves. Therefore it would be helpful if the industry could contribute to fund such a system,” he says.

FACTS Exsto Holding In 2011 Exsto Holding had a turnover of 24.9 million and a profit before taxes of 1.3 million NOK. The corresponding figure for 2012, according to Svebak, is 46 million and 4 million in profit.

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Vex-gruppen AS

Company Profiles Job Market

JOB MARKET

V e x- G ru p p e n AS - We know staffing and recruiting! 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 Straume, Sotra 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!

P hone : + 4 7 5 6 3 3 6 5 5 0 EMAIL: post@vex.no

A D dress : 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

w w w.v e x . n o

Vex Vex has been a preferred staffing agency to the oil, gas and energy industry since 1996 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 HR-department. Through clear communication and clarifications we believe that we can offer better services to our clients.

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.

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Subsea engineers

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Electro engineers

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Automation engineers

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Quality mngt.

Technical personnel

System and HSE policies

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Mechanics

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Warehouse technicians

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Electricians

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Welders

Services

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Drilling

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.

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.

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Plumbers

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NDT

Type of personnel - positions 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

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IT-consultant

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Purchasers

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Reception

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Co-ordinators

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Mechanical engineers

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.

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Supply bases Moving on up

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Keeping the goods coming Major logistics providers on the Norwegian Continental Shelf have continued to keep offshore operations running like a well oiled machine by making sure essential materials and equipment reach offshore installations as required. Aker, Asco, Coast Center Base and NorSea, remain major competitors in the NCS logistics market. Asco has been boosted by winning a five year services contract with Lundin Petroleum to support its activities on the NCS including the Brynhild and Edvard Grieg developments. This new deal encompasses supply base services, offshore containers, transport and freight forwarding, waste management and provision of logistics personnel for the duration of the contract. In April 2013 Marine Logistic Services secured (MLS) a new deal with Statoil to provide the supply ship Viking Fighter for a six month contract with options for another six months. Viking Fighter and MLS are both NorSea Group subsidiaries. Viking Fighter has been on short-term contracts with Statoil since early 2013. The ship was heading out to the Asgard A and Asgard B installations as part of this new deal which is worth up to NOK 31.5 million (US $5.43 m). At the end of 2012, NorSea secured a significant deal with Total E&P Norge to provide base services for the 190 million boe Martin Linge development worth NOK 400 million ($68.9m) over eight years with a further eight years of options. NorSea chief executive Rune Veenstra revealed that as a result of winning this contract the company is to develop a new tailor-made terminal building to meet Total’s requirements. The contract commences July 2013. NorSea will build the new terminal for Total at its Dusavik base, and the new building will be up and running mid-2014. All usual base services will be provided, loading and unloading of vessels, material handling, warehouse storage, outdoor storage, plus provision of personnel and forklift trucks for transit of goods. Additionally radio-frequency identification technology will be installed by NorSea for tracking and identification of critical drilling and operational equipment for the operator. There are also options under the deal for provision of marine gas oil, and liquefied natural gas, plus the use of other NorSea bases if required. Also the company is expanding across the North Sea, with the opening of its first base in Scotland, earlier this year, at Scrabster Harbour, in a partnership with the Harbour Trust in Caithness, which will be poised to serve the growing UK offshore sector in the West of Shetlands, and the marine renewables industry. Scrabster, near Thurso on the north Scottish coast, is undergoing a facelift to create a new 11,573 square metre quayside. Aker’s logistical operations were boosted in February 2013 with the award of a new framework agreement from Statoil to provide subsea operations and services on the Norwegian Continental Shelf which will cover subsea equipment, maintenance, up-grades and recertification of tools and equipment. Although the amount of work coming through the framework agreement will be on a call-off basis, depending on how many projects Statoil is prepared to put through, Aker has already booked an order intake of NOK 5.5 billion (US $932.1 million) as a preliminary estimate of the value of the work involved. A complete subsea refurbishment of the Troll field - the world’s biggest subsea development in terms of subsea wells – is in the pipeline for 2014. Aker’s contract is for five years, with options for another nine. Aker says its subsea service base at Ågotnes, established back in 1994 just outside Bergen, will provide the project support for Statoil. From here, more than 200 subsea trees have been installed on the Norwegian Continental Shelf. “We are not only refurbishing subsea trees to guarantee an extended lifetime, but we are also upgrading to accommodate more functionality, enabling Statoil to increase production capacity from each well,” explains Alan Brunnen, head of Aker Solutions’ subsea business area.

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One of the key links in the Norwergian supply chain is Bring which is represented at all of the major Norwegian oil centres. Stavanger – in Tananger, Kristiansand, Vestfold, Haugesund, Ågotnes, Mongstad, Floro, Sandnessjoen, Orkanger, Verda, Hammerfest, Kirkenes, and Tromso. The company has its own solution for moving oil and gas cargo around the country, which it calls the Oil Express, through which it serves all the major onshore bases. Project management and freight forwarding, ship agency, and supply base logistics services, for deliveries to and between oil bases, are provided.

Base Profiles ASCO

Asco Kristiansund

With up to six bases along the west coast of Norway, Asco is one of the key operators in the Norwegian offshore logistics sector.

Arcticbase This is the latest addition to the company’s operations, with two sites, at Kirkenes and at Hammerfest, Skjervøy island near Hammerfest in Troms county. Skjervøy is the major marine centre in Troms where a pier is being extended to 15,000 sq. m, and another industrial pier is 80 metres long and there is a 4,700 sq.m storage area. The Kirkenbase site is not yet being used but it can provide a direct link from the UK and Western Europe into Russia.

Farsund Established in 2007, Asco’s Farsund base primarily serves Alcoa Aluminium, where it operates quayside equipment including the loading and discharging of vessels. Farsund also provides backup to the Tananger base, and offers a shorter sailing time to Southern North Sea fields. Farsund has 3,500 square metres of indoor warehousing, 8,000 sq. m outside, and a 131 metre long quayside with a depth of 14 metres, and another 50,000 sq. m of outdoor storage nearby.

Asco Sandnessjøen

Kristiansund Established 1999, Kristiansund has 53,000 sq. m outdoors, and 12,000 sq. m paved, a 70 metre quayside with water depth of 10 metres. Asco’s Kristiansund base is at Averøy and is now operated by Kristiansund base AS, formed in May 2009 as a joint venture between Asco Norge and Mongstad base.

Mongstadbase Established in 1984, Asco’s Mongstadbase originally served Norsk Hydro’s NCS fields and the site is now owned by the Frank Mohn group. Asco and the owner company, Mongstadbase AS now co-operate, allowing Asco to use the site to support operations in Bergen. Recent clients have included BG, Centrica and Nexen.

Sandnessjøen Asco’s Sandnessjøen base was set up in Horvnes in 2007 to support BP’s Skarv project and it has been developed jointly with the harbour authories and the local council. The site has been identified as a key strategic area for the oil and gas industry and the Asco site currently provides

Asco Tananger

All photos: Asco

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3,000 sq. m of indoor storage, a further 30,000 sq. m outside, offices, two ship berths of 80 metres, marine fuel tanks, and a 1,200 sq. m bulk materials plant.

Tananger Tananger has been operating since 1995 when BP outsourced its logistical operations there. Located at Sola Havn, the base has 12,000 sq. m of warehousing, of which 4,300 sq m is heated, and 60,000 sq m open storage and 18,000 sq m of quayside, in addition to 1,500 sq. m of offices. The site offers customised chemical storage, and four ship berths with a water depth of 11 metres, with bulk handling facilities, and there is room for a possible marine gas oil facility. Early 2013, Oil Spill Response Limited (OSRL) selected the Asco Tananger base as the location for its new well capping equipment which has been developed for any subsea well control emergencies on the NCS. Nine international oil and gas companies formed the Subsea Well Intervention Service in 2011 and OSRL has collaborated with the industry joint venture to construct the equipment. Norway’s Minister for Oil and Energy Ola Borten Moe visited the Asco Tananger base in March 2013 to see the new equipment installed there, from which it will be available for rapid deployment in the event of an offshore well emergency. “This equipment helps our members prepare for, and handle, potential subsea well control incidents on a global scale,” explained Robert Limb, chief executive of OSRL, as the new well control facility was unveiled at Tananger. “The launch in Norway is the first step in a global programme that will ensure a response capability that has never been provided before,” Limb declared. All of this follows the BP Macondo well blowout in the US Gulf of Mexico in April 2010, and the loss of 11 lives on the Transocean Deepwater Horizon semi-submersible. OSRL’s Subsea Well Intervention Service (SWIS) aims at providing rapid subsea incident response worldwide. Norway is the first of four global locations. Other well control sets will be based in Brazil, South Africa and Singapore. Each unit comprises four well capping stacks, and two kits to clear hardware and debris from a subsea wellhead, and equipment to distribute a subsea oil dispersant to improve bio-degradation of oil. The equipment is designed to be deployed in water depths up to 3,000 metres (10,000 feet) and to control flowing pressure up to 1,034 bar (15,000 pounds per square inch). The remaining equipment packages are due to be delivered in the second and third quarter 2013. This equipment will be maintained ready for immediate mobilisation and onward transportation by sea and/or air in the event of an incident. The first equipment is now available for international use from OSRL’s Norway base, and a further three devices were being delivered during Q2 and Q3 2013.

NORSEA

Now operating nine major bases serving the Norwegian Continental Shelf, NorSea continues to deliver the goods for the offshore oil and gas market. John Stangeland, NorSea chief executive says his company still spends the most in Norway and promises it will continue to do so: “Our core business strategy lies in ownership of supply bases, whether this is the quayside, a plot of land or the buildings for various service and oil companies to conduct their businesses,” Stangeland explains. “In this respect we invest a lot in the North of Norway. Recently, we have expanded tremendously in this region close to the Barents Sea. We will also keep investing in mid-Norway as well as Stavanger,” he pledged. Further south, Stangeland says it is key to keep investment going in older infrastructure by replacing older offices and warehouses with new buildings. “Most of the supply bases here were constructed in the early 1970s, and today our capacity challenge requires us to remodel these old buildings and infrastructure,” he explains. “Our objective is to service and handle the current NCS growth without having to build another port or move from Stavanger. We will and intend to make massive investments in these development programmes to make sure that we meet the capacity challenge on the NCS,” he adds.

NorSea AS Dusavik This site is both an offshore support base, a logistical hub and an industrial cluster with 36 international operating and service companies located there. Dusavik serves Statoil, ExxonMobil and Total. It provides 300,000 sq. m of base area, 600 metres of deepwater quayside for supply of bulk materials and bunkering. The site has heavy lift capacity and was tailor-made for Subsea 7.

NorSea AS Tananger Operating round the clock, 365 days a year, NorSea’s Tananger base just outside the country’s oil capital of Stavanger is a multi-purpose offshore support base with 13,000 square metres of terminal and warehouse facilities as well as modern cargo handling equipment. Supporting up to 24 international oil service companies, the site has bulk handling and storage facilities to ship supplies and equipment offshore and it has 800 metres of deepwater quayside for berthing platform supply ships. This site is on the north-east corner of Risavika, sheltered from prevailing weather, and just five kilometres (3.1) miles from Stavanger International Airport at Sola. Towards the end of 2012, NorSea completed a NOK 65 million (US $11.2 m) investment at the Tananger site to create a new 37,000 sq.m warehouse building for Swire Oilfield Services – one of its major clients.

Stordbase AS Stord Located in Eldøyane Næringspark at Stord, between Stavanger and Bergen, this site was established in 1981, providing offshore logistics, base activities, terminal and harbour services. The site has 80,000 sq.m of storage inside and outside; 800 sq. m of workshops and 280 metres of

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NorSea Dusavik. Photo: NorSea

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Concrete coated pipe. Photo: NorSea

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quayside. Certified welders can repair outer casings on flexible riser pipe and pipe spooling is also available. Working with Seaflex, 4Subsea and IKM, the site can also provide annulus testing, gauge pigging and various types of damage investigation. Stordbase also provides small fabrication services, for sea fastening of cargo, grillage, and support steel for module demolition. The the site also has its own CNC [computer numerically controlled] table.

Vestbase AS Kristiansund Serving offshore oil and gas fields from mid-Norway, and at the crossroads of the company’s logistics operations, Norsea’s Vestbase occupies a 56,000 sq. m site. It has 60,000 sq. m of indoor storage, and 680 metres of quayside. With a core activity of terminal operations, the site provides shipping, transport, and customs services and bulk handling.

Norbase AS Harstad Established in 1980 at a site within a new industrial area four kilometres (2.5 miles) south of Harstad, this facility has a cargo terminal from which a liner service and trucking routes extend across the country. Occupying a 40,000 sq. m site, Norbase has 3,800 sq. m of indoor storage, 1,840 sq. m of offices and 200 metres of quayside.

Polarbase AS Hammerfest The most northerly of NorSea Group’s network, Polarbase is well placed to support activity in the Barents Sea. Operational since 1980, the site has supported previous exploration and production drilling in the Barents Sea, and it will be a key platform for NorSea for future development in the region. This site provides 230,000 sq. m of base area, 15,000 sq. m of indoor storage, 1000 sq. m of offices and 465 metres of quayside.

Lista Base (LTU) AS Farsund This is the new base being developed in Farsund, which the company says will be aimed at providing support to companies and marine operations in the southern North Sea. Through cooperation with the local government in Farsund and the local Industry in the area, LTU can provide storage areas, deep water quayside and multiple services to all clients.

CCB (Coast Center Base) Like Asco and NorSea, Coast Center Base has been a major operator in the offshore logistics story from the start and it now operates five sites in key oil and gas centres, at Ågotnes, Helgeland, Kollsnes, Kirkenes and Vardo.

CCB AS Bergen Occupying a 650, 000 sq. m site, this CCB location has 800 metres of deepwater quayside at Ågotnes, with up to 50 metres depth with no weight limit. Project facilities comprise a large terminal area with Ro/Ro quay, 4,500 sq. m of workshops and storage buildings, and 20,000 sq. m of offices. This site supports Tampen area fields in the North Sea, including Statfjord, Gullfaks, Veslefrikk, Troll, Huldra and Kvitebjørn fields.

CCB Kollsnes Established just three years ago, CCB Kollsnes has become a new site for the offshore wind energy sector. Initially aimed at servicing the UK and other European offshore wind markets, CCB says the facility was born out of a perceived need for a logistical model that could service the total offshore wind energy chain. CCB Kollsnes owns 75% of the operating company at the base, at Naturgasparken Kollsnes near Bergen. Offshore wind technology developer SWAY, based in Bergen, is already working on a new floating turbine with up to 10 Megawatts of generating capacity and the unit is being tested on Ljøsøyna, part of the new company’s property. General Electric Energy AS, which supplies turbines for electricity generation on North Sea platforms, is also located at Naturgassparken. Associated companies:

Helgelandbase AS Sandnessjoen Operational since the start of offshore exploration drilling in 1983, this two-site facility is split between Holmen, and Horvnes in Sandnessjøen and operate together for NorSea as the base for oilfields offshore from Nordland county. Today they serve the Norne field, ten hours sailing time offshore – and the Alve fields. Helgelandsbase is owned 51% by the NorSea Group subsidiary Coast Center Base. Holmen has 30,000 sq. m of outdoor storage, another 6,400 sq. m indoors, plus 380 sq. m of offices and 110 metres of quayside. Horvnes occupies another 140,000 sq. m, with 18,200 sq. m of offices workshops and 160 metres of new quayside

CCB Kirkenesbase AS, Kirkenes Aimed at serving operations in the eastern Barents Sea – if and when they commence – NorSea’s CCB Kirkenesbase, just inside the border from Russia, is intended to be a multi-user terminal providing a complete logistical solution for operators in the region. The site has cargo handling equipment, indoor and outdoor storage facilities for goods, and the centre can provide ship-clearance, customs clearance and transport services. The base occupies a 115,000 sq. m site, with 3,000 sq. m of warehousing, 600 sq. m of offices, and 105 metres of quayside.

CCB Vardø CCB is promoting its Vardo Barents Base as the best located port of call for any ships working on the Shtokman field – if and when that development ever becomes reality. The logistics group says this base, at Svartnes in Vardø is the most easterly port and the closest to Shtokman, which lies 600 kilometres (370 miles) north of the Kola Peninsula and Murmansk. Svartnes is 3.5 hours less sailing time to the field compared with any other Norwegian or Russian harbours. “For ships transporting goods through the Northeast Passage and coming out of Russian waters, Svartnes is also the first harbour to be reached in Norway.” CCB says.

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A Brighter future As one of the major players in Norway’s oil and gas supply base logistics market, Asco sees a bright future and it is backing that belief with plans for new sites to support sector expansion. “There are a lot of new discoveries in Norway and a lot of activity coming onstream I would say especially in the North Sea,” says Runar Hatletvedt, managing director for Asco North Europe. “The North Sea will still be the biggest engine and the most active area in Norway. What we believed two or three years ago was that the oil industry was moving north but it is not, it is just expanding north, due to a lot of discoveries like Johan Sverdrup, like the Ivar Aasen field of Det Norske, Brynhild and Edvard Grieg by Lundin, and Martin Linge by Total, all in the North Sea area. This is actually where the main growth will be for the forthcoming years.”

Challenges With all these new projects coming forward, is it simply a case of carrying as before? Hatletvedt does not believe so. Instead, he suggests supply base operators will have to become more sophisticated. “The product that the operators require or want to see will maybe develop into more advanced logistic solutions models. The logistic providers will maybe have to deliver a wider range of services in the years to come. It could be to provide more of a total logistical service where you also take in vessels.” Helicopter services could become part of the same offering, he suggests. “So it is a more advanced mode. And of course on the supply bases we have been focussing in the last few years on the one stop shopping concept where the operators can get all they want for the vessels at the same site.”

Moving up For more than a year there has been a clearly stated push by Statoil to move north. “Statoil is an important client on the Norwegian Shelf but there is a lot of other important clients that are just as important on the Norwegian Shelf,” Hatletvedt says. “Statoil is normally one of the first companies going into new areas so Statoil is very much a door opener for new areas that are being opened for activity.” Honningsvåg, 100 km (62 miles) east of Hammerfest, in Finnmark county in northern Norway might be one new activity area, where the planned new Polarled pipeline serving the Skrugard and Havis fields due to come ashore. Hatletvedt doubts Polarled will offer logistical opportunities for Honningsvåg. “But of course the pipeline [construction] project will be interesting for logistic providers and also the Aasta Hansteen pipeline which will be the first one coming onstream, going from Aasta Hansteen, to north of Sandessjøen, going down to Kristiansund. These are quite big pipe projects that will include a lot of logistics operations for pipe handling and transport and so on.” Hatletvedt says the Aasta Hansteen pipeline landing at Sandnessjoen, near Nyhamna, represents a big logistical opportunity: “The pipe that will be required for the pipeline is approximately 340,000 tonnes with cement coated pipes,” Hatletvedt says. Wasco won the contract for coating the pipes after competing with Bredoro Shaw. Wasco is establishing a plant in Mosjøen, south-west of Sandessjøen to coat the pipes. “So we don’t believe that a lot of this project will influence industrial activity in Sandessjøen but it will be in Mo i Rana where the pipe will be coated,” Hatletvedt stated. “But we still believe that a part of the project will happen in the Kristiansund region.” Hatletvedt says the Kristiansund area will have to provide a pipe coating yard and big pipe storage yard for the pipes, due to the distance to the pipe-laying vessel. “So you might see one pipe yard down in the Kristian-

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sund area and that will be at Averoy just outside Kristiansund, and the rest of it will happen up in Mo i Rana,” he says. Once these two major fields are approved, and the pipe construction is done, Hatletvedt concedes that there will not be much logistical opportunity there. Instead, he sees a bigger opportunity in the rig sector: “What is really interesting when it comes to development in Norway is the drilling activity in Norway which will increase very much. We have 31 rigs in Norwegian waters today. In 2015 we will have 54 and that is a very good example of how activity is increasing in Norway.” Those extra rigs will be doing both exploration and production drilling, for Johan Sverdrup, Ivar Aasen, and Edvard Grieg. “The total drilling activity which is very important for the supply bases in Norway is increasing very very much,” says the Asco chief.

Shtokman And after Statoil withdrew from this giant gas project in the Russian sector of the Barents Sea at the end of last year, reports have surfaced much Rune Hatletvedt. Photo: Asco

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more recently suggesting Statoil is still looking at the development. Indeed Statoil has not entirely walked away from Shtokman and, according to reports, is in fact talking about it again. “Statoil has been out in the media stating that they could be interested in entering the project again,” Hatletvedt confirms. “But there needs to be some changes in the fiscal system in Russia and there needs to be a new technical solution to operate the Shtokman field because in the last model where they discussed installing pipes from Shtokman to shore - I do not believe that will be a viable solution because it will be too expensive and due to the price of gas today. And the US market is very much self sufficient ...initially 93% of the Shtokman gas was meant to be exported to the US and that market has disappeared due to the US becoming self-sufficient with gas.”

Kirkenesbase A year ago Asco was looking to develop a supply base in Kirkenes, just inside Norway’s frontier with Russia. But with the ending of Statoil’s involvement in Shtokman last year, Asco’s planned Kirkenesbase has not materialised - yet. “Shtokman was very important to getting started in Kirkenes so we feel we have a bit more time in that region,” Hatletvedt says. “But Norway is about to open areas in the south-east of the Barents Sea that could actually put more focus on Kirkenes again,” he says. “We have partners that owns big chunks of land in that area that will be developed into to a very big industrial or logistical hub consisting of supply activity. Asco’s position is that we are focusing on operating there but we do not want to own the land in Kirkenes. We have partners who have that ownership as part of their core business and we are partnering with them,” he explains. And what of the timing for this new base? “I would say that it is a bit early. We will not see many rigs in that area in the first stage, so I believe within the next two or three years I would expect that we could operate in that area.” With six operational bases at present, Asco isn’t planning to stand still. New bases are planned near Haugesund, and at Tromsø. “We are focussing on mostly Gismarvik for the moment, where we handled the Statoil pipe project for Gudrun last year. Gismarvik is a very close to Haugesund, just a bit further north of Stavanger,” Hatletvedt disclosed. Gismarvik is ready for operations, and is in the midst of new opportunities for providing rig logistics and rig maintenance on the site. “And we are about to start building up some waste management activities and we are marketing that as an alternative to the Stavanger region due to the fact that Stavanger could see a challenge with capacity for example when Johan Sverdrup starts,” Hatletvedt reveals. He points out Statoil has already expressed concern over whether the Stavanger region has the capacity to take on all the new activity. “One of the reasons why we have taken on Gismarvik is the sailing distances. It is actually a shorter sailing distance from Gismarvik to some of these [new] fields. Gismarvik will be a very good alternative and will have vast capac-

ity to take on all the new activity, for example Johan Sverdrup in the years to come. “And then of course we have the new Tromsø base where the first quay will be ready September in the new Grøtsund area - this will be the main port for handling rig activity, IMR, rig maintenance activity and classing of rigs for the entire Barents region,” explains the Asco executive. “Tromsø is the only major city we have in the northern areas. It is bigger than Hammerfest for example. There is a big airport there at Tromsø which can take [Boeing] 747 planes and you cannot do that in Hammerfest which is a much smaller airport. You have 70,000 people in Tromsø and you have only 7,000 in Hammerfest. They have much more capacity in Tromsø. And Tromsø will be a very good alternative also for supply base capacity to support the northern part of the Norwegian Sea and the Barents Sea, and it will be a major anchoring and chain mooring base for IOS InterMoor.” Grotsund is owned by Tromsø public harbour, and has invested between NOK 300 and 400 million (US $51- 68.40 m) in that area. Asco has a long term lease to operate the base and quayside there. At Gismarvik a lot of money, estimated at “several hundred million NOK” has already been invested by owner by Haugaland Energy - a water energy company. Asco has a long term operating lease there too. So Asco won’t be at the back of the queue to provide new logistical support for new projects. “The North Sea will still be major activity but growth in the Barents and Norwegian Sea will be very important and Asco will be following that as it develops,” adds the Asco Norway boss. “Asco Norge will grow very much in years to come.”

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Asco Mongstad. Photo: Asco

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Coast Center Base AS (CCB)

Company Profiles Supply Bases

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COAST CE N T E R BAS E AS

Meeting clients needs

Coast Center Base provides the most attractive service base for the North Sea petroleum industry and maritime transport operators. We are dedicated to perform all our services with high focus on HSE&QA. As maritime and offshore industries evolve, CCB is continuing the market oriented expansion of the base facilities. We support our customers by providing facilities they require in order to develop their businesses. During the last couple of years, we have experienced extensive growth within the IRM services/projects for rigs and vessels. Additionally, from our new workshop facilities we provide state of the art technical services in accordance with the latest subsea standards.

Logistics and Harbour

Yard Services

At an age when competition is the principle rule, the service community at Ågotnes cooperates successfully to meet joint challenges. In respect of our customers and partners, we believe in listening to their demands and meeting their expectations. It is all about understanding customers needs – simple as that. CCB is approaching 40 years and has so far been a great industrial adventure. Our expertise has been widely known both at home and abroad. It is our greatest ambition to continue this growth into the future.After all, what we provide for the oil and gas industry is simply to make sure that it may operate and continue its growth into the future.

Technical

Property

Coast Center Base AS • P.Box 55 • N-5347 Ågotnes • +47 56 32 30 00 • post@ccb.no • www.ccb.no

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11/

Shipyards

Continuing a maritime tradition

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Photo: Sosltad Offshore

Surviving and thriving Ships and shipping have been synonymous since the start of the Norwegian oil story as a bridge between the offshore platforms and land-based logistical supply bases. The modern Norwegian shipping industry and onshore yards have continued to survive and thrive by serving the oil and gas industry, initially in the North Sea, and then in the Norwegian Sea and more recently in the Barents Sea, and beyond, as exploration companies range further offshore. Today ships designed and built in Norway are operating daily as standby boats, platform supply vessels, anchor handling and tug support vessels. And as the industry has progressed into offshore construction and pipelaying, larger more sophisticated subsea construction and multi-role vessels are needed with bigger payloads Norwayâ&#x20AC;&#x2122;s shipping industry has a new client base too â&#x20AC;&#x201C; the growing offshore renewables sector is providing new scope for naval architects to design vessels, and for shipyards to build them for the emerging offshore renewable energy industry. But the shipyard sector is seeing change, with consolidation and shipyard sales underway, involving both Bergen Group and STX. Some ship operators have identified challenging conditions in 2012. Others expect to surf a wave of future growth in offshore construction to maintain profitability.

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Fair times ahead Shipyards on Norway’s western coast are continuing to supply the offshore petroleum industry with newbuilds and there is a clear optimism about the future for this key support industry. Lately the industry has been having a high time through a succession of new orders. “If you look back over 2012 the Norwegian ship-building industry has had a fairly good year,“ comments Birger Skår, sales and marketing manager for the Norwegian Shipbuilders Association. New orders worth NOK 24.2 bn (US $4.40 bn) were secured in 2012, he says, across all Norwegian shipyards, “Out of those, more or less 90% of the new shipping construction value was for oil and gas related orders,” he points out. At the start of 2013 Norway’s Kleven Shipyards received orders for construction of a new subsea vessel, and a seismic ship, bearing out Skår’s belief in a buoyant ship construction sector Asked why was last year so good, Skår says: “Obviously demand from the ship owners over the last year.” However he accepts some oil and gas sectors were not so good: “The platform supply vessels (PSV’s) – these orders are down,” he concedes, continuing: “This market is not so active any longer. The market for larger shipbuilding, for larger offshore construction and seismic vessels and cable-lay vessels – these are sections which are in a better position,” Skår notes. He says up to 60% of the current total ship-building orders are related to oil and gas, “But the value of orders, which is a better measure in my opinion, is about 90% oil and gas related,” he says. Looking at orders for 2013 and beyond, Skår believes Norwegian ship-builders should have reason to remain optimistic about the good times continuing: “The industry has a good year ahead,” he says. Skår says his optimism is due to the demand from Norwegian ship owners: “The ship-owners have a very active programme. There is a lot of vessels in the market and more vessels are going into that market. There is a substantial number of new PSVs and some of that is replacing older ships,” Skår says. That over-supply of PSVs was borne out by Farstad Shipping in its results for the fourth quarter 2012, when the company noted a continued growth in the subsea segment of the international oil and gas market. With the AHTS segment still under pressure, and the company commented on an over-supply in the PSV sector. “But there is also a change in demand. Quite a few of the new PSVs are heading for the market further north which requires ships with de-icing equipment, and higher freeboard – ships that are built for the challenges they are going to face further north,” according to Skår. And what are the challenges for the future that are exercising his mind? “It is a challenge in that the vessel orders built by the Norwegian shipyards are more or less 90% for the offshore [market] and we have to ask ourselves what should we do without oil and gas, and that is a very hard question for us to face, but I believe that the answer is not too gloomy for the time being or the near future. We will be busy working on that market in the future for sure. The oil and gas market is so demanding with new techniques, and tackling that in a sensible way is something that I am sure Norwegian shipyards are absolutely capable of, in taking up that challenge and performing satisfactorily for ship-owners,” he adds.

Like Farstad, REM Offshore notes that not all sectors of the Norwegian shipping industry are in good health, but REM endorses Skår’s belief that better times are ahead: “During the third quarter the spot market in the North Sea was weak both for PSV’s and anchor handlers. The trend has continued into the fourth quarter,” REM observed. “Despite the growing demand for offshore service vessels (OSV’s) in the North Sea, the delivery of several new PSV’s, and AHTS vessels returning from other geographical areas, has translated into weakening spot and time-charter rates.” Beyond the North Sea, REM Offshore says other international markets are keeping ship operators busy: “Activity in South East Asia, West Africa and Brazil remains high. With the current high oil prices, and the planned exploration and drilling activity, conditions are set for a gradual improvement in the offshore markets going forward. This increase is expected particularly within the subsea and anchor handling segments.”

Building a new Bergen Group The year 2012 did not end well for Bergen Group’s shipbuilding division but the company was aiming to turn it around in 2013 with restructuring and reorganisation. After ending the fourth quarter 2012 with a net operating loss of NOK 280 million (US $49.1 m) Bergen Group also reported a net loss for 2012 of NOK 694 m ($121 m). During 2012 the group signalled change was needed due to delays on shipbuilding projects at both its BMV and Fosen yards, which resulted in late delivery and penalty payments. “The ongoing outfitting projects at both Fosen and BMV experienced further challenges with regards to completion of NB168 at BG BMV and the two cruise ferries for Fjord Line at BG Fosen,” the company conceded in its 2012 fourth quarter results, adding: “Hence, the poor result is a combination of man-hours overrun in Q4 and provisions taken for completions of these vessels in 2013. Included in this is additional cost to complete the second Fjord Line hull at Stocznia Gdansk, where the hull yard has struggled with liquidity problems and progress throughout both projects.” Early 2013 the group was nearing the end of a restructuring programme with the sale of its Rosenberg fabrication facility near Stavanger, and its Halsnøy shipyard near Bergen was also being sold. Exploratory talks were also underway with a partner – a “European-based global shipbuilder,” following a Memorandum of Understanding to underpin the deal late 2012 - to share ownership of its shipbuilding division. By the fourth quarter 2012, the company said the search for a shipbuilding partner was progressing. “The parties expect to finalise this process during the second quarter,” Bergen Group disclosed. Bergen Group reported a heavy deficit in its shipbuilding in the fourth quarter 2012, with an operating loss (EBITDA) of NOK 270 million ($47.04 m) “This is significantly weaker than expected,” the company commented. “We are not happy to report another quarter with weak numbers for the shipbuilding division. The work with the on-going outfitting projects of the 4th quarter both required significantly more resources than estimated last autumn, and it discovered a need for further provisions in order to finish the projects. We also expected more rapid effects of the structural and organisational measures that we implemented during the second half of 2012,” declared chief executive Terje Arnesen.

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However, Arnesen is certain Bergen Groups shipbuilding can regain profitability, pointing out that current projects have significantly lower implementation risk on outstanding work. Results for Bergen Group Services were not good, with an operating loss of NOK 142,794 ($25,000) in the fourth quarter 2012. “In the 4th quarter, Bergen Group Services delivered some of their weakest results in a long time,” the company revealed in its end of year figures. “Most of the deficit is related to warranty provisions and deficits in companies that have been sold during the last few months. The profitability of this division is expected to be back during the first half of 2013. Bergen Group Services will be developed further, focusing on maritime and offshore-related service in the Bergen area and in Kirkenes,” the group has pledged. Bergen Group Services originally comprised eight companies and three of these, at Dreggen, Halsnøy and Risnes were being sold, and the remaining activities were being concentrated at Hanøytangen. At the end of 2012, Bergen Group’s total order book was worth NOK 4.7 billion ($824 m) with Rosenberg accounting for NOK 1.3 bn ($276 million) of the total. Corporate change is also underway at STX where two of its shipyards have changed hands. Westcon has moved in to buy up the STX Norway Florø yard and the STX ship design company also based in Florø. After getting a green light for the deal from the Norwegian Competition Authority, the deal was finalised December 2012. Arne Birkeland, Westcon’s deputy chief executive described the deal as a new opportunity and improves his company’s position as a provider of shipyard services. “Access to a highly skilled work force in the acquired companies, as well as a bigger dock, a modern plant and an attractive location will strengthen the market position of the Westcon Group,” Birkeland declared.

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Kleven verft. Photo: Geir SĂŚtre

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Florø will be developed specifically for rig modification work, adding to its other bases in Helgeland and Karmsund and Ølen where it was first established back in 1983, specialising in ship-building and repairs. Since 1994, rig modifications have added another dimension to the company which has invested NOK one billion upgrading yards and facilities in recent years. In 2013 the 100th rig project started. And it has faith in the future of the NCS: “The market for rig modifications is expected to stay strong. Westcon has estimated that a total of 76 special periodic rig surveys are planned over the next six years and additionally 13 new rigs are expected to enter the Norwegian Sector - most with a need for a yard pit stop,” the company says. Along with its competitors, CCB and Bergen Group, Westcon believes that the necessary infrastructure, experience and capacity to carry out these new rig projects is available. Westcon Group, Ølen. Photo: Øyvind Sætre, Westcon

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Shipyards Båtservice Mandal Founded as Westermoen Båtbyggeri in Mandal on Norway’s southern coast back in 1948, the company later changed its name to Batservice Verft and delivered its first offshore supply vessel for a German client in 1972. Since then the yard has built standby, seismic and ROV support vessels, and in total has delivered over 800 units, as well as completing many rebuilds. Today the yard specialises in smaller vessels including passenger catamarans, particularly the Sea Lord type which has been adopted for use as a car ferry and offshore oil protection vessel. In 2008 a new deepwater dock opened at Mandal.

BG Mekaniske Verksted Lakesevåg (BMV) In February 2013, Bergen Group’s BMV yard delivered its latest newbuild, BN168, an advanced Emergency Response and Rescue Vessel which Atlantic Offshore will be using for a ten-year Statoil contract. Next, BMV is to start on an offshore construction vessel (OCV), designated BN 169 for North Sea Shipping. The hull is being built by Daewoo-Mangalia Heavy Industries in Romania. Outfitting of this ship is due to start in the fourth quarter 2013, for delivery in the second quarter 2014. Meanwhile BMV is to concentrate on maritime services and ship overhauls, which will include Norwegian Navy work – with which it has a long-standing agreement, but it will be temporarily without outfitting work for most of 2013, and instead BMV will collaborate with Fosen. Previously Bergen Group said that its shipbuilding division had reported a negative result for the third quarter 2012 after a three-month delay from a hull construction yard which could not be recovered, creating extra costs for the new field support vessel due for delivery to Atlantic Offshore in January 2013.

BG Fosen Fosen in Bergen builds ferries, offshore supply and anchor handling vessels, offshore support and seismic vessels. Currently the yard has an order book full through to the second quarter 2015. Fosen is already building two cruise ferries for the Fjord line. Once these are completed, the first of these, the MV Stavangerfjord, was delivered to Fjord Line in July 2013 from Bergen Group Fosen. Fosen will be constructing an OCV for Volstad in 2014, and second OCV for Volstad in the first half of 2015. These ships, designated BN 90 and 91, will be sister-ships to the BN 89 delivered from Fosen in October 2012, which was another offshore service vessel for Volstad contracted by Canyon/Helix. Revised delivery times for BN90 and 91 were agreed with the client after

a review of work on NB89. “Bergen Group Fosen is in the process of renegotiating with the customer related to the progress and financing of the first (BN90) of these projects,” the company said previously. Outfitting for this vessel starts at Fosen in Q4 2013 and BN 91 early in the second quarter 2015. Originally Volstad signed for the BN90 hull to be delivered in 2013, after awarding the NOK 800 million (US $144.68 m) contract to Bergen Group in February 2012.

BG Halsnøy Specialising in ship-building and repairs, plus re-construction of both civil and naval ships, Halsnøy provides berths and docking for vessels up to 116 metres long with a beam up to 24 metres. The site has a large steel construction hall for module and structural fabrication and it has access to all the trades necessary for planning and execution of larger construction assignments and classification of vessels.

BG Hanøytangen Located near Bergen, and within easy access of the open sea and deep water, the Hanøytangen site is suitable for the largest ships and rigs. It has no height restriction and a towing channel deep enough for extremely large drafts. Boasting one of Europe’s largest dry docks, blasted out of a solid rock bed, the site has an extensive quayside, and access to all equipment and services necessary for an extended yard stay. Eventually Bergen Group aims to create a single offshore and maritime service centre at Hanøytangen.

Drammen Yards Part of the Drammen and Versksted Group, also known as the Drammen Shipyard Group – this entity operates yards at both Drammen and Frederikstad. Drammen can take vessels up to 170 metres long and 24 metres wide and Drammen also builds carousels for subsea cable laying, which can be fabricated in sizes up to 9,000 tonnes. Larger tonnage can be handled at Fredrikstad which has dry-dock capacity for vessels up to 290 metres long, and 39 metres breadth.

Fjellstrand Six new vessels destined for the offshore wind market are being built by Fjellstrand based on its “Windserver” concept which is designed to act as a personnel transport ship, using a trimaran SWATH - small water plane

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Kleven MyklebustVerft

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STX VARD Søviknes Foto Valderhaug

Drammen Yards

BG Hanøytangen

BG Fosen

BMV Laksevåg

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Kleven shipyards current workload

Vessel type

Design

Name

Owner

Yard

Delivery date

Seismic

ST-324 XT

Rieber Shipping

Myklebust Verft

Mar 2015

PSV

VS 4412 DF

TBN

Remøy Shipping

Kleven Verft

Sep 2014

OCV

SALT 301 OCV

TBN

Eidesvik

Kleven Verft

Aug 2014

PSV

VS 485 MKIII L

TBN

Atlantic Offshore

Myklebust Verft

Jul 2014

OCV

MT6022 L

TBN

Rem Offshore

Kleven Verft

May 2014

Seismic

ST-324 CD

Sanco Sword

Sanco Shipping

Myklebust Verft

Apr 2014

OCV

MT6022 MkII

TBN

Olympic Shipping

Kleven Verft

Mar 2014

PSV

VS485 MKIII L

TBN

Atlantic Offshore

Myklebust Verft

Mar 2014

OCV

MT6022

TBN

Rem Offshore

Kleven Verft

Feb 2014

PSV

SALT 100

TBN

Ugland

Kleven Verft

Jan 2014

Source: Kleven

area twin hull . All six units have been ordered by World Marine Offshore A/S – based in Esbjerg, Denmark, and are due to enter service in 2013. These vessels, with either 25 metre or 30 metre long hulls, will be capable of carrying 12 to 25 personnel at up to 25 knots. Design development was supported by the Offshore Wind Accelerator (OWA), a competition supported by the UK’s Carbon Trust and backed by the British government, to support new concepts to serve UK offshore wind farms. The OWA is also backed by offshore renewable energy companies – E.On, Mainstream Renewable Power, Statoil, Statkraft, Dong Energy, RWE Innogy, Scottish Power Renewables, plus SSE - Scottish and Southern Energy - who together aim to cut offshore wind development costs by 10% by 2015. Back in 2011 Fjellstrand supplied one of 13 concepts which were short-listed for the OWA – out of a huge 450 entries – in a competition to find cost-saving solutions for the offshore wind industry. Nils Aadland, managing director at Fjellstrand, said the deal was a big breakthrough. “The contract with World Marine Offshore A/S represents a significant milestone for Fjellstrand in pursuing new markets within renewable energy,” he said. “It incorporates over 30 years expertise with aluminium fast ferries, advanced motion dampening systems and offshore special vessels (OSVs).”

Kleven Renamed from Kleven Maritime in late 2012 - the company has two yards - Kleven Verft in Ulsteinvik and Myklebust Verft in Gursaken, Myklebust Verft is 20 minutes from Ulsteinvik. Currently the two yards have a total of 14 construction orders – six due for delivery from Kleven and four from the Myklebust facility.

Kleven Verft This yard has an extensive construction programme with up to nine vessels due to be delivered by March 2015. Kleven’s workload includes an advanced ice class seismic ship for GC Rieber Shipping, due out of the yard out in March 2014. Kleven signed to build a new PSV for REM Offshore ordered in November 2012, for NOK 600 m (US $105 m) for delivery in September 2014 – after previously delivering 14 other vessels for Herøy-based REM. This new ship is based on an MT 6022 design. Including REM’s new ship, Kleven has a 14 vessel construction programme worth nearly NOK 7 billion (US $1.22 bn) in early 2013. Kleven is already constructing another MT6022 OCV, called Rem Install, for delivery to REM Offshore mid 2013, which has a firm three-year contract. Another Kleven customer, Olympic Shipping, is due for another OCV from the same yard, again an MT6022 design, in March 2014. Six vessels have been built by Kleven for Olympic over the last two years worth over NOK 3 bn US ($526 m). Another PSV - designed by Salt Ship Design at Stord in Norway - is being built at Kleven Verft for Ugland Offshore, due out in the first quarter 2014, with an option for a second newbuild.

Myklebust Verft Myklebust Verft is 20 minutes from Ulsteinvik and builds OSVs, coastguard and fishing vessels. The yard is currently building a previously ordered PSV for Ugland Offshore due for completion in June 2013, and an advanced seismic vessel for GC Rieber Shipping, designed by Skipsteknisk, which is to be delivered from Myklebust Verft in March 2015, under a NOK 700 million (US $120 m) contract.

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Seven Viking

STX Notwithstanding the sale of two subsidiaries, STX Norway Florø and the design company STX Norway Design Florø, STX still has five shipyards in Norway, making it the biggest ship-builder for the offshore oil and gas with facilities at Aukra, Bratvag, Brevik Langsten and Sovikness, more than any other competitor in the sector. STX OSV started 2013 with a spate of new orders for subsea construction ships which will keep its construction yards occupied through until 2014 and beyond. One vessel has been ordered by DOF Subsea for an undisclosed sum, another by Farstad Shipping under a NOK 800 million (US $144 m) contract, and a third by Solstad Offshore, in a NOK 600 million (US $108 m) deal. DOF’s new ship will be an OSCV12 design developed by STV OSV in Ålesund and will be 161 metres long, with a 32 m beam. It is due for delivery in the first quarter 2015, and the hull will be built by STX’s Tulcea yard in Romania. Farstad’s new ship will be another OSCV designed for subsea inspection, repair and maintenance using an OSVV07 design with a length of 143 metres and a beam of 25 m. This ship will be fitted with two cranes, the

larger one a 250 tonne unit, and the ship will also be built for up to three remotely operated vehicles (ROVs). Farstad’s new ship will be using another Tulcea hull, and is to be delivered by the STX Langsten yard, again in the first quarter 2015. Solstad’s ship will be based on a OSCV 03 design, measuring 121 metres long with a 23 m beam with accommodation for up to 100 personnel. This ship will also feature two cranes. STX Langsten is to build this vessel also for delivery in first quarter 2015, again with a Tulcea hull.

Ulstein Verft Boasting an international reputation for design and ship-building, Ulstein continues to produce supply and service vessels, anchor handling, offshore support and heavy offshore vessels for a variety of roles, both at Verft and at Vanylven. Ulstein’s designs range from the distinctive X-bowhulls, through to offshore and heavy offshore designs. Ulstein is already building an advanced construction vessel for REM Offshore ordered November 2012, at a cost of NOK 600 million (US $105 m). Ulstein’s current backlog is for a new X-bow design OCV for GC Rieber Shipping for delivery in 2014 and a new X-bow PSV for Blue Shipping due for delivery in 2013.

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Photo: Hywind

Ship Operators Subsea opportunities on the rise Major Norwegian ship operators are many and although some of them have fleets operating globally, many are concentrated on the Norwegian Continental Shelf. Like many Norwegian ship operators Boa Offshore is optimistic about the offshore industry, particularly in subsea construction – one of its key markets. Boa believes that the subsea christmas tree installation market is growing, from around 300 units between 2010 to 2012, to something like 500 or more in the next three to five years. The North Sea remains one of the most important markets for the company, along with the other big three, Brazil, West Africa and the US Gulf of Mexico, with Australia now a runner-up in that top five tally. Boa’s belief is backed up by subsea tree installation data, which in a best case scenario “could” double in the next three to five years, while the total of subsea tree installations beyond 1,000 metres (3,300 feet) “could” increase threefold, company data from the Pareto Securities conference, in Norway in September 2012, has suggested. Again, Brazil, the Gulf of Mexico and West Africa are key markets. Turning to floating production systems, Boa notes the average number of FPS installations has been around 20 in the last five years, yet the company’s own prospect lists suggest that figure is set to be greater than 40 over the next five years. While several projects have been either postponed or rejected, Boa believes in the prospect of 25 to 30 FPS installations per year from 2014 to 2016, is “...very achievable at present.”

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Newer, larger, and more advanced vessels are needed, the group believes, while on the supply side, the key features it identifies are AHTSs with capacity greater than 15,000 bhp while newbuilding is limited, constrained by finance. In the short term, DOF expects the North Sea spot market to remain weak until about March 2013, and, longer term, the company indicated in the third quarter 2012: “We expect the AHTS market to turn in the favour of owners, with good rates and high utilisation in the spot market and higher rates on term charters, ” but DOF also indicated then: “We are uncertain about the future balance in the PSV market.” There are many operators in the Norwegian shipping sector. Here’s a snapshot of some:

Boa Offshore

ULSTEIN SX121 Island Constructor Subsea illu connected during well intervention.

Looking at global floating production, storage and offloading (FPSOs) installation opportunities, Brazil is seen as the most active region from now until 2017. Brazil will be followed by South East Asia, but that region’s market has “lower transparency,” with 25 out of 54 prospects either on order or being tendered at September 2012. In the North Sea Boa predicts FPSO installation tendering will rise to about 15 out of 26 prospects, while the US Gulf of Mexico market is expected eventually to return to pre-Macondo levels. Boa’s own prospect list indicates 40 opportunities per year between now and 2017, and between 25 and 30 projects “...looks very achievable at present,” between 2014 and 2016, the company indicated at the 2012 Pareto conference. Another major ship operator, DOF – District Offshore - said in September 2012 that the outlook for its offshore business was good. The company predicts substantial subsea sector growth, while on the supply side, newbuilding within all sub-sectors is limited, and the offshore subsea vessel market is affected by an old fleet and financial constraints. On the demand side, DOF says surface to subsea activity is increasing, noting that subsea construction capex is expected to double by 2014. There is increased tendering for equipment, and a substantial activity backlog, the company noted in its third quarter 2012 results presentation. In the PSV and AHTS markets, DOF says the demand side of the sector features high oil prices, increased exploration and production activity, deepwater and infrastructure spending, and the strongest growth is seen in Brazil, West Africa and the Asia Pacific regions.

Head-quartered in Trondheim, and with offices in Gothenburg, Gydnia in Poland and Houston, Boa boasts a fleet of 35 units operating globally, which includes the Boa Deep C which is on charter to EMAS until August 2013 operating in the North Sea and Boa Sub C, also chartered by Emas, to July 2015. Mainly involved in subsea installation, seismic and electro-magnetic imaging, Boa also provides barge transportation, load out and launch services for heavy transport, rig moves, and harbour and coastal towage.

BW Offshore A major competitor in the floating production market BW almost needs no introduction with a fleet of 15 floating production storage and offloading vessels (FPSOs) and three floating storage and offloading (FSO) units which are operating around the globe including those acquired with the takeover of Prosafe Production in 2010. Early 2013 it took over operation of the Peregrino FPSO performing for Statoil in the US Gulf of Mexico. The company is optimistic about the international market too, for 2013 and beyond, telling shareholders in its 2012 fourth quarter results: “The outlook for the energy market in general and FPSO business in particular remains good. Based on BW Offshore’s product offering, geographical presence, scale and competence, the company is very well positioned to grow its core business. BW Offshore’s cash flow from the operating units is secure and based on long term contracts with national oil companies and independent oil companies.” Much of its fleet is contracted beyond 2015.

DOF (District Offshore) One of the biggest of the big six players in both the Norwegian and international offshore service markets, DOF ASA, which was formed from the 1993 merger of DOF Shipping and District Offshore, now has a fleet counted at a total of 74 units spread across several companies within the group, DOF ASA, Norskan Offshore – which operates in Brazil - DOF Subsea, DOF Installer and Aker DOF Deepwater. These

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break down into 23 PSVs, 20 AHTS vessels, and 31 CSVs. DOF also has a further six newbuilds on the way. These include NB 800 , designed for subsea construction, inspection, repair and maintenance and remotely operated vehicle work, in up to 400 metres water depth. This was the largest vessel on order for DOF Group in the first quarter 2013. The others are NB 799, Skandi Iceman, a deepsea anchor handler, NB766, a construction and ROV vessel, Skandi Angra and Skandi Paraty, both high power anchor handlers, and Skandi Urca, a deepsea anchor handler. Geographically the company is focussed on the North Sea with operations in Austevoll and Bergen, Aberdeen, Australia, South America and North America including Houston and St John’s in Newfoundland. In September 2012, DOF said it expected solid cash flow for the next three to five years, and its total contract work-order was NOK 38.4 billion (US $6.92 bn) including firm contracts for NOK 18.1 bn (US $3.17 bn ) and contract options worth another NOK 20.3 bn (US $3.56 bn).

Eidesvik Eidesvik Shipping provides offshore supply, subsea and seismic vessels. The fleet includes ten supply vessels. Two new PSVs, Viking Prince and Viking Princess joined the company’s fleet in 2012. Eidesvik also has five subsea vessels operating and two more under construction. These are the Seven Viking, built at Ulstein in 2012 and named early 2013, which has been contracted by Subsea 7, and BN 365, which is being built at Kleven Maritime, with a weight of 13,500 metric tonnes, which is being built with a single deck crane and accommodation for up to 150. Also Eidesvik boasts a fleet of 7 seismic ships and one cable-layer, the European Supporter.

Farstad Shipping At the end of 2012 Farstad Shipping, head-quartered in Ålesund, and specialising in anchor handling, platform supply and subsea units, had 57 ships in its fleet – 28 AHTS, 26 PSVs and three subsea construction ships - with a market value of NOK 16.8 billion (US $2.94 bn). Farstad also has another eight newbuilds on the way – among them are four AHTSs, two PSVs, and one subsea vessel, worth another NOK 4.3 bn (US $754 million). Six of these are being built at Langsten. While Farstad noted “...A disappointing North Sea market,” in 2012 with 326 vessels available in the North Sea fleet while demand was for 294 vessels – with average utilisation at 90% for the year - going forward, the company notes oil prices in “positive territory,” along with a general increase in demand for vessels in the offshore market, and continued growth in the subsea sector. At the same time the company says the AHTS segment remains under pressure and there is over-supply for PSVs, while there is also a limited supply of “competent resources,” once again alluding to the continuing need for expert personnel in the Norwegian oil and gas industry.

Fred Olsen Production Another operator in the global floating production storage and offloading (FPSO) market, Fred Olsen Production has four units in operation – Knock Allan, Knock Adoon, Petroleo Nautipa, and Marc Lorenceau. The Petroleo Nautipa is on a firm contract with Vaalco in Gabon, until the third quarter 2020 with options until 2022. Knock Adoon is working for Addax Petroleum in Nigeria with up to eight years of options to 2019, and the Knock Allan is working for Canadian Natural Resources, also in Gabon, for ten years with options for another ten. Early 2013, the outcome of a

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technical bid was awaited on the Marc Lorenceau for a contract expected to be between three and five years. FOP noted however that 2012 was “...The slowest year on record since 2004” for the floating production market, and its macro perspective on the sector was: “[The] FPSO market is solid with growth predicted,” while FOP observes that the number of contracts actually awarded continues to fall short of prognoses due to delays in awards. But the company has higher hopes for 2013, and beyond, also noting in its 2012 fourth quarter results that: “Excluding giga-projects of Brazil and West Africa, the market is slow but steady.” Nevertheless FOP is looking at major change, with a strategic review underway and a merger, sale or continued organic growth expected in the first half of 2013.

Island Offshore Island’s fleet comprises 13 PSVs, five Subsea Crane Vessels (SCVs), and three RLWI well intervention vessels. At present the total fleet is 23 vessels, which is due to increase with six newbuilds from STX OSV Brevik, comprising a further five PSVs, and one more SCV, the Island Pride, which is due for delivery in 2014, and which will be equipped for crane operations, trenching, subsea construction and ROV operations, plus survey, Inspection Repair and Maintenance, and general supply duties.

Olympic Shipping Founded in 1996, with two vessels, Olympic Commander and Olympic Supplier, Olympic Shipping’s current fleet of 21 is based at Fosnavåg on the west coast of Norway with a range of functions from AHTS and PSV units, to multi-purpose vessels, and one newbuild, which will be a multi-purpose offshore support vessel.

REM Offshore Head-quartered in Fosnavåg, south of Ålesund, REM Offshore is set to increase its current fleet of 13 with a further three vessels by 2014. Currently REM’s fleet comprises four multi-purpose support vessels and offshore construction vessels (MPSV/OCVs), eight PSVs, and one AHTS. This is due to be increased with one newbuild PSV, and up to three more OCVs, which are due for delivery in June 2013, February and June 2014. One newbuild OCV, REM Installer is under construction at Kleven Shipyards for delivery in June 2013 which has a three-year contract with Canyon Offshore. A second OCV due for delivery in the second quarter 2014 at a cost of NOK 600 million (US $105 m), has been signed for eight-years with DeepOceanAS. Prospects have improved for AHTS vessels, says REM as more rigs are mobilising to the North Sea and PSV activity has been good, but it notes a surplus of these vessels, and the global PSV order is large, creating uncertainty over future rates. REM also endorses the view that subsea construction is improving: “Within the subsea segment the market is looking promising. The activity is increasing, as well as the demand for ships,” the company said in its 2012 report.

Remøy Based in Fosnavåg Sunnmøre, Remøy’s fleet consists of six offshore vessels: Rem Stadt, Rem Hrist, Rem Moist Blue Fighter and Blue Prosper, plus two seismic vessels, MV Ocean Odyssey and Geco Scopio and two coastguard boats. Blue Prosper and and Blue Fighter were awarded new contracts for work with Apache in the North Sea towards the end of 2012. Blue Prosper, delivered by Ulstein Verft in September 2012, was signed up for a one-year deal with Apache which ends November 2013 and sister STX Ship construction. Photo: STX Europe

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ship Blue Fighter had a one-year Apache contract renewed. Remøy Shipping is technical and commercial manager for both ships which are based at Peterhead, Scotland. Early January 2013, Remøy saw further success with two contracts renewed for ships leased to WesternGeco, Geco Scorpio and Ocean Odyssey, built in 2000 and 2005 respectively, which have new five-year deals, with two-year options, which will keep them working from early 2013 onwards.

Solstad Offshore Founded back in 1964 originally as Solstad Rederi, Solstad Offshore has a fleet spanning several offshore sectors from anchor handling and tug supply vessels, to construction service and platform supply vessels. Head-quartered in Skudeneshavn, and listed on the Oslo Stock Exchange in 1997, Solstad has 15 AHTSs, 16 CSVs, nine PSVs, plus a derrick lay barge, the Norce Endeavour. Two further newbuilds are due to be added to the fleet, NB 811 and NB 825. The NB811 is another CSV due to be delivered from STX OSV in 2014 at a cost of NOK 600 million (US $105 m), which has been contracted by ReachSubsea ASA for a firm five year contract worth for NOK 650 m (US $114 m) with three years of options.

Siem Offshore Head quartered in Kristiansand, Siem Offshore has 11 PSVs, ten AHTS ships, two multi-purpose field and ROV support ships, plus two other specialised units. One is a well stimulation vessel, and the second is a core sampling research vessel. Siem also has an incredible ten newbuilds on the way. There are two Offshore Subsea Construction Vessels (OSCVs), Siem Daya 1 and Barracuda which are being delivered in 2013, and another two OSCVs, Spearfish and Stingray, are due for delivery in 2014. Siem is also building two Oil Spill Recovery vessels (OSRVs), Margogi and Marataizes, two new PSVs, the Atlas and Giant, which are due for delivery this year (2013) and next. Another un-named PSV is due for delivery 2014, along with an infield support vessel (ISV).

Teekay Shipping Another provider of floating production facilities, Teekay is the largest operator of North Sea FPSOs and fourth largest leased FPSO operator globally. Head quartered in Trondheim, Teekay now also owns two units acquired from Seven Marine at the end of 2011, Hummingbird Spirit – on hire with Centrica Energy until January 2014 plus options on the UK Chestnut oil field, and Voyageur Spirit, which is on a time charter with E.On UK at the UK Huntington field.

Ugland Offshore Part of the JJ Ugland Group, Ugland Offshore AS, is responsible for commercial and technical management of the PSV Evita, which was delivered in July 2012, and the NB 361, which is due for delivery in the first quarter of 2014. The Evita flies the Norwegian flag and the entire vessel crew is Norwegian and Scandinavian. Also Ugland operates flat top barges, from 10,000 to 16,000 deadweight tonnes, including three which are fully submersible, plus a crane vessel.

Ulstein Founded in 1917, Ulstein celebrated its centenary in 2007. From its start as a fishing vessel repair yard, Ulstein has grown to become one of the major operators in the Norwegian offshore sector,

providing ship design, construction and shipping services. Ulstein designed ships are set to feature highly in the future development of the Norwegian Continental Shelf. The Seven Borealis, a new heavy lift and pipelay vessel based on an Ulstein design will be deployed at the Martin Linge field after new owner Subsea 7 was selected for a US $800 million EPIC contract for delivery and installation of the subsea umbilicals, risers and flowlines (SURF) facilities for the project. This will be the first assignment for the Seven Borealis. At Martin Linge, the ship, which measures 182,2. metres with a 46.2 m beam, and which is fitted with a 5,000 metric tonne revolving mast crane, as well as 1,000 t J-lay tower, and a 600 t S lay system, will be used for installing a 70 kilometres gas export line and a 55 km fibre optic cable, a 3 km pipeline and risers for the development. The ship will also install a 160 km power cable from the field location to Kollsnes.

Volstad Maritime Based in Ålesund and with a mixed fleet of offshore construction, IRM and seismic ships, Volstad Maritime currently has a six-ship fleet. One of its first units, Bibby Sapphire was sold to Bibby Offshore in 2010, and a diving vessel, Bibby Topaz, is on a long-term charter with Bibby Offshore. The Volantis, delivered from Fosen Shipyards in 2008 as a multi-role support vessel, is equipped with a work-class ROV spread, a trenching system and a 2,000 tonne vertical lay spread, is on long term charter to DeepOcean. Another offshore construction ship, Deep Cygnus, also delivered from Fosen in 2009, is operating for Canyon Offshore. Volstad also owns two seismic ships, Oceanic Endeavour, and GeoCaspian, chartered by CGG and Fugro.

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Photo: STX Europe ship construction propellor 2009

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Port of TromsĂ¸

Company Profiles Shipyards

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PORT OF TROMSØ

The port of Tromsø is the major port in North Norway, strategically located for the oil and gas activities in the Barents Sea and the northern Norwegian Sea. As one of the largest fishing and cruise ports in Norway, it is also one of the fastest-growing ones. The port of Tromsø has substantial capacity as the largest logistics hub in the Arctic. Due to the increased oil and gas activity in the High North, we have a clear ambition to offer high quality, tailor-made solutions for the industry.

The project is an important part of the Norwegian Government’s High North strategy to establish sustainable petroleum activities in the Arctic.

To meet these industry needs, we now develop a top modern port and industrial park at Grøtsund, only 14 kilometers from the city centre.

By meeting future industry demands in a professional and flexible way, we aim to become the preferred port for the oil and gas industry in our exciting part of the world.

www.tromso.havn.no

TROMSØ

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Fabrication Making more

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Photo: KvĂŚrner ASA

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BMV was due for more work later in 2013. Photo: Bergen Group

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Surviving and thriving Norway’s fabrication yards have continued to deliver a steady stream of fixed facilities for existing and new offshore developments for years, and 2013 saw a surge in new work. With the advent of a series of new projects, Aasta Hansteen, Edvard Grieg, and Martin Linge, plus Clair Ridge and Eldfisk topsides modification work, in addition to onshore projects at Mongstad and other offshore projects such including Asgard, Boyla, Brynhild, Kvitebjorn and Njord, Norwegian yards are now enjoying a high level of activity after securing a series of high value contracts. Big and small operators are finding roles in the Norwegian offshore construction sector. Major operators, like Aker Solutions, Bergen Group and Kvaerner now dominate with multiple facilities, while others are still supplying services from single locations on the western coastline. Some of the fabrication facilities have also diversified to take advantage of the wider offshore renewable energy market too. But the sector has not been without change. Bergen Group has been consolidating, Kvaerner now owns two former Aker Yards while Aker has also expanded further north and OneCo and GMC have also expanded their facilities. Aker is now heavily involved in the Aasta Hansteen development offshore Noway after being selected in early 2013 to deliver a subsea production system for the project, under a NOK 2 billion (US $362 million) contract. Earlier this year Aker Solutions also won a NOK 280 m (US $49.1 m) deal with Statoil to supply deepwater umbilicals for Asta Hansteen which will be fabricated in Norway. Fabrication of the Asta Hansteen subsea system will be carried out at Aker’s specialist module and subsea fabrication yard at Egersund. But this won’t be the only Aker facility involved. In October 2012 Aker secured a deal to acquire a new fabrication facility at Sandnessjøen where subsea templates and manifolds are now being fabricated for the project. Sandnessjøen was acquired as part of a deliberate move to extend operations further north. At the time of the deal – the value was not disclosed – Aker said it was increasing its fabrication capacity in anticipation of new developments in the Norwegian Sea and further north. The new site, unused since 2011, is at Helgelands Industrial Park in Sandnessjøen, Norway - Helgelands Næringspark - and was bought from Ruukki Construction. Asta Hansteen deliveries are due in the first half of 2015.

Significant change Split between offshore, services and shipbuilding divisions, Bergen Group has been one of the major operators in the Norwegian offshore market for years, but the group is going through significant change and consolidation during 2013 and will emerge in the Norwegian fabrication sector in 2014 looking very different after agreeing to sell its Rosenberg facility near Stavanger and the Halsnøy shipyard near Bergen. After signalling its intention to sell Rosenberg mid-February, Bergen Group confirmed details of the sale later the same month. The buyer is a Norwegian subsidiary of Australian-based engineering group WorleyParsons. The sale and purchase agreement was finalised for Bergen Group Rosenberg and its subsidiaries, including Rosenberg Services AS and Origo Process AS, for NOK 1.088 billion (US $190.49 million). As the deal was done, Bergen Group said the move represented the sale of its largest investment in the offshore industry – Rosenberg provided 43% of 2012 group revenues, and the yard had reported a net profit of NOK 102 million (US $17.85 m) in 2012.

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Bergen Group’s most northerly outpost at Kimek. Photo: Bergen Group

Terje Arnesen, group chief executive, said selling Rosenberg would “.... Liberate funds for supporting a future growth in the group’s remaining offshore-related activities.” He said Rosenberg had been developed into a “very attractive player in the EPCIc market,” and continued: “The future growth of this company depended on a strong partnership with an international player. The sale to WorleyParsons is seen as good for all parties,” Arnesen declared. For the fourth quarter 2012 Bergen Group reported a net loss of NOK 487 million (US $85.32 m) and a net loss of NOK 694 m ($121.6 m) for the full year. Operating revenue for the fourth quarter 2012 were NOK 873 m ($152.97 m) and NOK 3.470 bn ($608 m) for the full year. Clearly the company has been under no illusions about the future with consolidation occurring within the group. A profit warning was issued in October 2012, with the company declaring then: “The performance within the ship building division has been very unsatisfactory, in Q3.” Operational improvement was sought, which was designed to improve control over two existing ship-building projects at its Fosen shipyard, while also aiming for better operational and financial performance on future construction and outfitting projects. And Kvaerner, now the owner of the Stord yard which was acquired from

Aker, is continuing its production line of offshore jacket construction, for BP’s Clair Ridge, another two for Edvard Grieg and Martin Linge, while also capturing a contract to deliver 48 steel supports for a new offshore wind farm.

Missing out However, Norwegian fabrication firms missed out on the major work for Ivar Aasen as much of the construction scope went overseas. Operator Det Norske awarded a contract for fabrication of the steel jacket for a fixed platform to Saipem whose Arbatax yard in Sardinia will build the 138 metre tall structure, for installation in a water depth of 113 metres, which together with piles will weigh 14,400 tonnes. Fabrication of the Ivar Aasen topsides is to be performed on an EPC (engineering, procurement and construction) basis by Singapore’s Sembcorp Marine and Offshore Engineering, supported by Mustang Engineering, the US-based engineering arm of Wood Group in the UK. Ivar Aasen topsides will weigh around 13,700 tonnes, and will comprise process, gas compression, separation, water injection, flare boom and metering facilities, plus accommodation. Topsides construction is to commence at the end of this year (2013) and they are due for completion March 2016, for first oil in the fourth quarter the same year.

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A centre for ship-building, Halsnøy also offers repairs, and re-construction. Photo: Bergen Group

Norway fabrication sites: A snapshot A.S Nymo Part of the JJ Ugland Group, Nymo is a full-service EPC yard with facilities in Grimstad and at Eydehavn near Arendal. See Nymo yards below.

Apply Leirvik Located in Leirvik, on Norway’s south-western coast, on Stord island, this two site-fabrication yard can build structures up to and over 5,000 tonnes. Early 2013 the yard received a new order under a letter of intent from Samsung Heavy Industries to provide the new living quarter’s for Total E&P Norge’s Martin Linge field development, which involves construction of a seven-floor 3,700 square metre module with accommodation for up to 95 personnel in single cabins, with related recreational areas, changing rooms, a helideck and other facilities, which is to be fabricated in steel for delivery in the second quarter 2016. Over the last three years the yard has produced living quarters for the Troll A Future Development extension, a living quarters and helideck module for the Gjoa development and for Snorre A, the yard was responsible for construction and installation of a new office and workshop module back in 2009, for what is now Statoil. With a total of 150,000 sq. m, the facility has 112,000 sq. m of construction halls ranging from 500 to 4,000

sq. m, and with load out facilities and easy access to the North Sea.

Aibel’s Haugesund This facility which provides design, maintenance, modifications and construction services, has major work underway for the Troll A extension. After the 10,000 topsides deck for the new Gudrun platform, under a NOK 2.7 billion ($487 million) contract from Statoil in 2010, the three new Troll A electrical, compression and utility modules are due to leave Haugesund this summer (2013). The yard is also building four modules for Statoil’s Linnorm development.

Aker Verdal – now Kvaerner Verdal Aker Egersund This facility is now fabricating some elements of the subsea production system for the Asta Hansteen development after parent company Aker Solutions secured a NOK 2 billion (US $360 m) contract from operator Statoil for the supply of the SPS. The workscope is for three template-manifolds, seven subsea trees, plus wellheads, controls, workover and tie-in systems. Egersund and the new Aker facility at Sandnessjøen will fabricate the template-manifolds. Management, engineering and pro-

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curement will be performed at Aker Solutions’ headquarters in Fornebu, Norway. Subsea trees and workover systems will be completed at Tranby near Oslo, and Aker in Aberdeen will manufacture the control systems and wellheads, for delivery in the first half 2015. The yard is also fabricating for several other current Norwegian projects including Boyla, Brynhild, Ekofisk South, Edvard Grieg, and Asgard. For Marathon’s Boyla development, its workload comprises a template and manifold. For Lundin’s Brynhild project, the yard is fabricating another 178 tonne subsea template. For ConocoPhillips, a bridge-link and topsides module is being built for the Ekofisk South 2/4Z platform comprising 10,000 tonnes of steelwork, for delivery in the first half 2013. Egersund is also building a new 4,500 tonne process module for Lundin’s Edward Grieg development, and a 4,800 tonne subsea compression station and a 900 tonnes manifold for the Asgard compression project, which are due for delivery in 2014.

Aker Sandnessjøen Aker Solutions is investing heavily in northern Norway and in October 2012, the company said that as part of its Northern Norway strategy it would be acquiring a fabrication facility in Sandnessjøen. This will provide several fabrication services for Aker Solutions and will be deeply involved in the Aasta Hansteen project for which it will be fabricating subsea template-manifolds, creating regional spin-off benefits. Based at Helgelands Industrial Park in Sandnessjøen, Helgelands Næringspark – the site was previously used for fabrication of steel structures and was acquired from Ruukki Construction Norge AS, which had not used the site since late 2011. “With this acquisition, we are positioning ourselves for fabrication work for both existing and future oil and gas field developments in the north,” declared Tore Sjursen, head of maintenance, modifications and operations (MMO) in Aker Solutions at the time of the purchase. He said it was important to build capacity further north, to follow the oil and gas developments there.

Under new ownership: Rosenberg becomes part of Australia’s WorleyParsons. Photo: Kvaerne

BG Rosenberg At the start of 2013 this Bergen Group facility was being sold to WorleyParsons but it has an ongoing work programme. After completing the Eldfisk Bravo Reinforcement EPCI project, the yard is still supporting a Kvitebjørn EPCIs contract. Rosenberg won a two-year extension in the third quarter 2012 for the Greater Ekokfisk Area Development, from ConocoPhillips, extending to the end of 2014. Rosenberg was constructing two subsea manifolds for the Marathon-operated Alvheim development which fell due for delivery in the third quarter 2012, and for Statoil it was fabricating 12 pipeline end manifolds, and a riser base, totalling 850 tonnes, as part of the Asgard Subsea Compression project, for delivery in May 2013. For Statoil, the yard is also building a 1,300 tonne pre-compression module for Kvitebjørn, as well as providing modifications and maintenance support for the Njord floating support unit (FSU). Additionally the fabrication facility won another order from Statoil early 2013 to replace compressor motors on the Troll A platform, which was due for completion by April, involving fabrication, testing and installation within a short time frame. Since 2010 the group has almost doubled the size of its engineering and procurement department at Rosenberg, and with the expectation of continued growth, a decision was taken late 2012 to provide another 200 work stations through the addition of a third wing to the administration

and engineering building at Rosenberg, which was due for completion in the third quarter 2013.

BG Halsnøy Early 2013 Bergen Group signalled its intention to “consolidate” its maritime services with the sale of the Halsnøy marine service and repair facility in Sunnhordland, south of Bergen, which has been constructing smaller offshore vessels, for NOK 30 million (US $5.25 m). The buyer, Halsnøy Dock AS, is controlled by Cinus AS which, which is the main shareholder in ship-builder Fjellstrand AS. The sale of Halsnøy, “...Allows us to consolidate this part of the group’s activity in stronger services that can help to further improve our competitiveness in this market,” according to Sebjørn Madsen, executive vice president of Bergen Group Services.

BG Hanøytangen Specialising in rig support, during 2012 Hanøytangen provided services during a ten-day stay by the Safe Scandinavia. It provided support for the MPS Regalia, and worked on the Transocean Leader during a 90-day visit commencing September 2012 – the major project at Hanøytangen that year, for which it provided personnel, logistics, moorings, quay facilities and accommodation services, as a sub-contractor to Semco Maritime. In December 2012 , the yard secured a further deal from Marine Accurate

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Well ASA to host the Island Innovator semi-submersible, a newbuild which arrived there in February after being constructed by China’s Cosco Shipyard, and which is due to remain until the second quarter 2013, during a commissioning programme before going on assignment for Lundin Petroleum.

BG Kimek Kirkenes Providing ship-docking services, classification work and reconstruction, and outfitting plus extension and general maintenance, Kimek Kirkenes is the most northerly outpost of the Bergen Group empire.

Kvaerner Verdal Now boasting the delivery of 37 fixed platform jackets for offshore oil and gas fields since 1975, Kvaerner Verdal is unarguably the major centre for steel jacket construction in the North Sea. Verdal is currently constructing two jackets for BP’s Clair Ridge development, 31 jackets for RWE Innogy’s Nordsee Ost wind farm under a contract worth about € 115 million, and two more jackets for the Edvard Grieg, and Martin Linge developments. In total the yard has 33,600 tonnes of work.

Kvaerner Stord Norway’s Stord yard, formerly owned by Aker, is building 15,500 tonnes of topsides for the Eldfisk II development for delivery in the first half of next year for ConocoPhillips, plus 21,000 tonnes of topsides for Lundin’s Edvard Grieg development, due out in the fourth quarter 2015. Also Kvaerner is to provide offshore hook-up and commissioning assistance for Edvard Grieg under another NOK 500 million ($87.7 m) contract.

er Stord continues as a mainstay of the Norwegian offshore fabrication sector and is constructing topsides for Edvard Grieg as well as international projects. Photo: Kvaerner

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urrent jacket construction projects

ect

Ridge

Order date Delivery Kvaerner Verdal - current jacket construction projects Kvaerner Verdal: current constructionSpring projects 2013 12jacket July 2010

ee Ost 49 jackets

d Grieg Linge

Height(s)

Client

Project

17 June 2010

2012/2013

19 January 2012

April 2014

13 February 2012

Spring 2014

167 m 45-48 m

Order date

Delivery

134 m

Height(s)

140.5 m

BP UK

Clair Ridge

12 July 2010

Spring 2013

167 m

RWE Innogy

Nordsee Ost 49 jackets

17 June 2010

2012/2013

45-48 m

Lundin Norway AS

Edvard Grieg

19 January 2012

April 2014

134 m

Total E&P Norway

Martin Linge

13 February 2012

Spring 2014

140.5 m

ect

Client M for Ormen Lange facilities

Project

Order date

Delivery

19 April 2012

Delivery 6Order yearsdate and 2 years opt.

ConocoPhillips

EPC topsides and bridge for Eldfisk 2/7S

Lundin Norway

EPC topsides Edvard Grieg

3 May 2012

Value (NOK)

11 bn

5.5opt. bn 6 years and 2 years

11 bn

18 March 2011

April 2015

Early 2014

5.5 bn

3 May 2012

April 2015

Early 19 April2014 2012

18 March 2011 opsides and bridge Eldfisk 2/7S EPCM for Ormen Lange facilities Norskefor Shell

opsides Edvard Grieg

Value (NOK)

8 bn

Kvaerner’s current EPC project portfolio and project value at award

Kvaerner’s current EPC project and projectand valueproject at awardvalue at award Kvaerner’s current EPC portofolio project portfolio EPC Project (Inside Norway)

Project value (NOK)

Mongstad TCM

525 m

Eldfisk topside

5.5 bn

EPC Project (Inside Norway)

Nyhamna onshore

Mongstad TCM

Nordsee Ost wind jackets

870 m

Clair Ridge jackets

1.7 bn

Eldfisk topside Nyhamna onshore

Project value (NOK) 8 bn 11 bn

Edvard Grieg topside

525 m

Edvard Grieg jacket

5.5 bn

1.1 bn

Martin Linge jacket

11 bn

1.2 bn

Edvard Grieg topside

8 bn

Nordsee Ost wind jackets

EPC Project (Outside870 Norway) m

Clair Ridge jackets

Sakhalin-1

1.7 bn

Edvard Grieg jacket

Kashagan HUC

1.1 bn

Martin Linge jacket

V&M Star (MEP) Calpine Garrison

Project value (US) 600 m 1.6 bn Undisclosed

1.2 bn

EPC Project (Outside Norway)

100-120 m

Project value (US)

Sakhalin-1

600 m

Kashagan HUC

1.6 bn

V&M Star (MEP)

Undisclosed

Calpine Garrison

100-120 m

Source: Kvaerner

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Stord in 2008 shows two of the H6 units built for Aker Drilling. Photo: Aker Solutions.

Nymo Yards: Eydehavn Originally used as an aluminium site, this facility was rebuilt for steel construction in 1975 and AS Nymo took control in 1991. It features halls for pre-fabrication and a main construction hall with a footprint of 60 metres by 30 metres, which is 24 metres high, served by two cranes. One 50 tonne, and the second a 200 tonne crane that can also extend outside the hall. On the quayside there are seabed foundations for testing jackup rigs.

Nymo Yards: Grimstad Head-quartered at Vikkilen in Grimstad, AS Nymo is a three site operation: The Vikkilen Grimstad facility has project and fabrication management, design engineering, fabrication, engineering and procurement capability, at a site which provides 11,000sq. m of in and outdoor welding facilities, plus a 5,000 sq. m assembly area, with a total storage of 41,000 sq. m. At the quayside- where the water depth is 10 metres - there are two 60 tonne cranes for loadout work. Sandblasting and corrosion protection work can be conducted here too. The site can take vessels up to 120 metres: Ship repair work has been performed here for 40 years and the first rig repair work was done here in 1966. In 2000, Grimstad was licensed by Dutch-based Van Voorden for propeller repairs.

Nymo: Fjære Located two kilometres from the main office built on grounds with historic links to the Viking era, Fjære was Nymo’s first facility back in 1946, with the first building still in use. The site has 2,700 sq. m. of indoor workshops for fabrication of stainless steel and aluminium construction. This includes a separate cleaning shop for passive protection of stainless welds and the facility specialises in providing acoustic packages and cladding for offshore platforms.

OneCo Kristiansand Since the start of January 2013 OneCo has grown by taking over Cargotec’s Vågsbygd base in Kristiansand which provides equipment manufacture and assembly services. As part of the agreement between the two, OneCo inherited equipment premises and staff, as well as Cargotec’s existing contracts while the shipyard lease was also assigned to OneCo. Marvin Jensen, chief executive of OneCo says the strategy should result in more involvement in offshore and marine sectors. As part of the move, the company is establishing a new entity, OneCo Offshore Services. At its existing Kristiansand base at Andøya, OneCo has a harbour and quayside with a 600-tonne crane, and two 90 tonne quayside cranes, docking capacity for up to 185 metres for loading out equipment, plus indoor assembly shops with cranes and two test bays each with 9,000 tonnes capacity.

OneCo Sandnes After taking over Keppel Norway AS based in Sandnes, which, according to OneCo, operated at a deficit in recent years, this facility has been returned to profitability, under the name OneCo Contracting. By the third quarter 2012 OneCo said its order book was worth NOK 1 billion (US $175.43 million) and the chief executive Jensen predicted a bigger figure for 2013: “We are looking forward to an exciting year in 2013, when the company anticipates that sales will exceed NOK 1.5 billion, ($263 m)” he said. The company also has two other sites at Grimstad and Drammen.

Randaberg Industries Based in Randaberg and close to Stavanger and therefore the North Sea

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During 2012 and into 2013 work was underway on yet more jackets for a series of new North Sea projects, includ

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Randaberg has been involved in smaller fabrication assignments over the years, including fabrication of 20 tie-in spools for Valhall on behalf of BP, built with carbon steel and carbon with Inconnel. Other completed projects have included tie-in spools for the Vega development for Subsea 7 and Statoil; a 30 tonne pipeline protection structure for Vetco Gray and Statoil, and fabrication of a pipeline end manifold for the Njord development. Randaberg’s site offers rig services, fabrication for complex steel structures, at a site with a total of 90,000 sq. m. This includes layup and storage areas, a 12 metre deepwater quayside 380 metres long and a 4,300 sq. m fabrication shops, plus a 1,220 sq. m surface treatment site in addition to their offices.

Simek AS Flekkfjord Established back in 1967 at Flekkfjord, almost equidistant from Stavanger and Kristiansand, Simek Flekkefjord provides fabrication and ship-building and outfitting services. Half of its shipbuilding since those early days has been for the offshore sector. Simek is a relative newcomer to the offshore market, and in a deliberate move to target oil and gas sector opportunities, established Simek Offshore in April 2012. At Flekkfjord the company provides services on a 200 metre quayside, with 2 cranes with a 30 and 8 tonne capacity respectively. The company has trolleys, heavy lift barges, surface treatment facilities, and a range of skills from mechanical and machine pipe fabrication to sheet metal workers and welders, as well as interior carpenters, who comprise the bulk of the 200 staff. The site has a 1,920 square metre construction shed, a steel cutting table and interior crane capacity up to 340 tonnes. Nearby Simek has a bollard pull test site, for up to 400 tonnes. Sister company Flekkfjord Elektro provides electrical installation services. In December this year (2013) Simek is due to take delivery of its next ship hull from Poland, which will be towed to Simek for outfitting and delivered to Gulf Offshore at the end of 2013.

GMC Named after founder Gunnar Magne Christensen senior, operations at Stavanger’s GMC yard were boosted at the end of 2012 with acquisition of another facility, the Hinna Base AS, also in Stavanger, cementing a relationship between the two yards which have been working together for several years. GMC dates back to 1973 and the company’s first job was to fabricate a skimmer inside the Ekofisk tank. Two years later the company added to its reference list with its first major EPCi contract for the Frigg CDP 1 platform and the company performed its first oil spill response assignment when the Amoco Cadiz tanker grounded off Brest in 1978. Today GMC provides fire protection, ship certification and class renewal services, reconstruction of offshore installations, rigs and vessels. It has sites at Buøy in Stavanger, where there are two dry docks of 130 and 280 metres, a 230 tonne crane capacity, steel and mechanical engineering and docking facilities. GMC Group also has additional workshops and docking at Kalhammaren and Mekjarvik. ing Clair Ridge, Martin Linge and Edvard Grieg at Kvaerner Verdal.

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While Stavanger remains Norway’s number one oil city with a host of connections to the country’s energy economy, new locations around the country are emerging which can also claim that title. And although they have not yet wrestled away the crown as the country’s oil capital they may do so one day as petroleum exploration and development heads for higher latitudes.

Stavanger Today Stavanger bills itself as the European Oil and Gas capital. While there are plenty of other places which would claim that title for the North Sea, for Stavanger this is no idle boast. Most, if not all of Norway’s major operators are based in Stavanger - in total the city has more than 35 operators and licensees holders with interests on the NCS based in Stavanger. More than 300 oil service companies are also here. And the city is the home for two of the regulatory authorities governing the Norwegian Continental Shelf, the Norwegian Petroleum Safety Authority, and the Norwegian Petroleum Directorate. Additionally, at Forus, Statoil has its vast international headquarters, managing operations across the world. Contractor Aibel moved into a building in Forus in 2006, creating its Stavanger headquarters, which now has more than 800 employees, running corporate company functions and the facility has been designed for up 1,200. Altogether, according to Stavanger’s Mayor Christine Sagen Helgo, around 45,000 people in the Stavanger area are employed in the oil and gas industry – half of the total employment in oil and gas in Norway as a whole. The city is also home to many energy-industry related conferences, not least ONS – Offshore Northern Seas – held every two years at the Stavanger Forum conference centre. In 2013 Stavanger also hosted OTD, the Offshore Technology Days energy exhibition and conference, produced by Offshore Media Group. Stavanger’s oil city boast is further backed by the presence of the University of Stavanger, and other oil and gas research institutions, specialising in energy-related studies, notably IRIS – the International Research Institute of Stavanger – jointly owned by the University of Stavanger and Rogaland county, as well as Rogaland Research, which also provides petroleum sector expertise. Backing up those academic credentials is the necessary financial know how provided by the presence of financial institutions in the city, among them Pareto Securities and DnB Norway, while a number of international schools offer placements for those bringing their children to live, work and play in the country’s oil capital.

...And history too And the city has considerable oil industry history – amply documented in the Norwegian Oil Museum in the harbour – which dates back to 1969, when the Ekofisk field was first drilled by a rig operating offshore from Stavanger. That rig was the Ocean Viking*, a semi-submersible, which in 1967 was operating 260 kilometres (162 miles) off the Norwegian coastline from Stavanger. Operated by what was then Phillips Petroleum, the rig was drilling a make or break well, after the company had drilled 11 previous dry holes in the North Sea.

* In 1966, the Ocean Viking semi-submersible drilling rig was built and equipped at Aker Mekaniske Verksted in Oslo, a predecessor of Aker Solutions. The rig drilled its first well – 16/11-1 - for Phillips Petroleum in the North Sea in July 1967. The well was dry. Other wells followed and on 21 August 1969, Phillips started drilling in block 2/4 with the Ocean Viking.

Photo: istockphoto

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“By 2020, our aim is to develop the Stavanger region into Norway’s foremost urban region in terms of competitiveness and value-creation.” Greater Stavanger 2020 business plan

Major of Stavanger, Christine Sagen Helgø

With Phillips under financial pressure at the time the company was cutting its expenditure and after 1,000 Phillips employees were axed - there was huge pressure on the European arm of the American oil major to ensure this well came in. It did: “Initial indications were favourable; oil was encountered, but an abnormally high pressure zone had been encountered too. The well was plugged with cement and abandoned after two weeks of difficulty.” Then the rig was moved about 3,000 feet (914 metres) south-east, “...where a second well was started on September 18, 1969. At a depth of 3,660 to 3,760 feet, (1,115 – 1,146 metres) slight traces of gas were recorded. On October 27 more than a month later, the drill bit had ground its way to 10,010 feet. There, the bit chewed some 600 feet [183 m] into a highly porous chalky formation that was saturated with oil. After sleeping beneath the North Sea for 65 million years, this oil pushed its way to the surface at the rate of 1,071 barrels a day.” The Ekofisk field had been discovered, which augured the start of the Norwegian oil industry. “What Phillips had at last was the first commercial oil well in the North Sea and the first giant oil field in Western Europe.” (1) *

* Phillips: The First 66 Years” Phillips Petroleum Company, Bartlesville, Oklahoma, Pub. 1983.

Fast forward to early 2013, and an economic survey of Rogaland county carried out by Greater Stavanger talked of growing optimism about the region’s economy, with companies expecting a four per cent rise in employment, equating to around 9,500 new jobs in the region. Ensuring Stavanger’s place as the country’s oil capital cannot be left to chance and the Greater Stavanger business organisation has published a plan to ensure this happens. A vision until 2020 spells out how the region – encompassing all 15 municipalities - intends to remain at the heart of the country’s oil and gas industry. Greater Stavanger’s strategic business plan up to 2020 addresses goals in knowledge, innovation, quality of life, internationalisation, infrastructure, public services, and of course, energy. By 2020 Greater Stavanger aims for the city to become “..a leader internationally in energy and the environment.”

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Bergen Being Bergen is no disadvantage in Norway’s ongoing oil story as there are a host of energy related companies in the city. While perhaps playing second fiddle to Stavanger, the Bergen region has almost as much enterprise, industry and expertise linked to oil and gas within the Hordaland region. Bergen is Norway’s second largest energy city including oil, gas, water and wind, according to Elin Sjødin Drange, head of business development in the Municipality of Bergen. The city and surrounding region’s energy industries account for NOK 165 billion (US $2.84 bn) of turnover, while value creation – measured by company operational results plus wages is worth another NOK 31.3 bn (US $5.39 bn). Altogether, the region has 27,800 employees and 1,361 companies working in energy. Bergen is a significant energy producing centre, as gas from the Troll field, Kvitebjorn and Visund lands at the Kollsnes terminal north of Bergen, while the Mongstad gas processing plant, also on Bergen’s doorstep, is now the centre of for a pioneering carbon capture and storage pilot project, which could lead the city towards a new type of energy future with less CO2 emissions. One of the distinguishing factors is that 60% of Statoil’s North Sea installations are operated from Bergen. Statoil has a large presence in the city with 5,000 employees and it has an expansion

programme, with a huge new building project under way outside the city centre at Sandsli. Bergen is the country’s leading centre of operations, production and maintenance, and boasts a Centre of Competence for Production Uptime. It is a major research location: Bergen hosts the CIPR – the Centre for Integrated Petroleum Research - and the Norwegian Centre of Excellence. The city is home to the NCE Subsea cluster, which is continuing to build and promote the region as a centre of excellence for the subsea industry, offering a cluster of companies concentrated in this particularl niche of the offshore market. Members include Aker Solutions, Bring Logistics, CCB, ClampOn, Emerson Process Management, Framo Engineering – now owned by oil service giant Schlumberger – plus Fjell Industries, and Siemens. Rolls-Royce Marine also has an engine plant in the city, and FMC has a large presence too. Bergen is becoming a centre of expertise for carbon capture and storage also after work started on a new centre for testing CO2 capture technology at the giant Mongstad plant. Hordaland county is the largest producer of hydro-electric power throughout Norway. Two initiatives are now underway to grow regional expertise in renewable energy, Arena Norwegian Offshore Wind (NOW) and NORCOWE – the Norwegian Centre for the

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Offshore Wind Energy cluster initiatives. Arena NOW comprises companies working on a raft of offshore wind issues from environmental studies, to project development, engineering, infrastructure supply, installation, and wind farm operations. Norcowe is hosted by Christian Michelsen Research in Bergen, and aims: “...To combine Norwegian offshore technology and leading Danish and international communities on wind energy in order to provide innovative and cost efficient solutions and technology for large water depths and harsh offshore environments.” Both seek to promote expertise in fixed and floating wind technology. But why has Bergen become such an centre of energy expertise? Drange says it can be partly explained by shipping: “Bergen is historically a seafaring town, with a long tradition of international trade,” Drange says. She points out the city was also an active member of the Medieval Hanseatic League - the commercial federation stretching from the Baltic Sea to the North Sea between the 13th and 17th centuries. That historical connection can still be made – at Bergen’s Hansa Brewery or Hansa Bryggeri, founded in 1891 originally in the city’s Kalfaret district below mount Floyen, although it relocated to an industrial park in the 1980s. “Bergen [people] and Bergen scientists have always been internationally oriented, and it is often said that we are facing west - to the world - not towards what is happening in Norway,” says Drange. “Bergen is one of the world’s leading shipping cities, especially in industrial shipping, and this has been affected as the oil industry began to take shape, so we have gained lots of experience in the maritime sector.” Today, Drange says the city can provide big benefits for oil industry related businesses. With 260,000 inhabitants, recreational opportunities are provided by the areas’s rich marine life, while the surrounding countryside provides spectacular outdoor recreational activity. “We have a number of internationally renowned festivals, and many museums. We have a research university located in the heart of the city, and the Norwegian School is ranked as the top business school in Norway,” Drange states proudly. Bergen has a huge academic side to its cultural life too. There are approximately 30,000 students and 4,000 researchers working in the city. Among Bergen’s academic institutions are the University of Bergen – including the Bjerknes Centre for Climate Research, the Norwegian School of Economics and Bergen University College which is moving to a new city centre campus in 2014. The college, Høgskolen i Bergen was established in 1994 from the merger of six other independent colleges and has three faculties for education, engineering, and health and social sciences and offers research up to PhD level. It has about 6,700 students and 660 academic and administrative staff. There is also Bergen Academy of Art and Design, Norwegian School of Management, Bergen School of Architecture, the Royal Norwegian Naval Academy and Stord/Haugesund University College. Scientific research in the region is provided by the Four Norwegian Centres of Excellence through the University of Bergen, the city’s global and marine research programmes, and by the Christian Michelsen Research centre, plus the Institute of Marine Research, and university research programmes harnessing the expertise of 500 scientists.

Mayor of Bergen Trude Drevland greets all Norwegian and international delegates and exhibitors to the 14th Offshore Technology Days in Bergen October (16), 17-18 2012.

New business in the city is encouraged via Bergen’s Chamber of Commerce, Drange points out. And the city strives to foster the best environment for companies to flourish and prosper. “Bergen is constantly working to secure proper facilities for the residents and businesses of the region,” she says. “Urban planning takes into account the need for future space for businesses as well as residential areas. It is expected that the city and the region will have strong growth over the next few years, and the region’s population is expected to increase by about 160,000 inhabitants, of which about 90,000 are expected in Bergen city,” she says. While the city is committed to retaining its energy expertise, it also needs to manage the challenges posed by that expected growth too. Drange says, “We are conscious that we want to retain businesses and expertise in the energy sector in our region. A real threat in the short term is that growth happens quickly, and that we are not able to build out infrastructure in relation to companies’ needs. In particular I’m thinking here of the traffic challenges - new roads and bridges - that can ensure companies can meet their logistical needs, and that they do not have to spend too much time in traffic jams.” High Norwegian salaries are also a threat to the region’s economy “Naturally Norway has a continuous challenge in that we have a high salaries,” Drange adds, “That means we must continue to deliver the best solutions to the industry, and still be incredibly effective and innovative to keep up with developments and the competition ahead. We are ready for the challenge!”

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Oslo Oslo’s claim as a Norwegian oil city is two fold – as the political capital of the country and home to the Norwegian Storting where the legislation applicable to the Norwegian Continental Shelf is enacted. The city is also home to the Oslo Børs, where many of the players on the NCS are listed and where their shares are traded on the stock market.

International engineering and construction group Kvaerner is now headquartered in Oslo. Kvaerner amalgamated with Aker in 2004 to become Aker Kvaerner, which then in 2008 was re-branded to become Aker Solutions ASA. Then in May 2011 Kvaerner re-emerged as a separate entity again and listed separately on the Oslo Bourse in July 2011.

Many energy sector companies have chosen to make Oslo their headquarters, among them: AF Group, Aker Maritime, Aker Solutions. A range of Fred. Olsen companies - Fred. Olsen Air Transport, Fred. Olsen Tankers, and Fred. Olsen Energy – to name just a few are based here. Shipping and service companies have bases in Oslo including BW Offshore, Ramboll, Seadrill, and STX Europe.

Additionally Oslo is home to Nord Pool Spot which runs the largest electrical energy market in the world, based on traded volumes, and it operates not just in Norway but across Scandinavia, Denmark, Sweden, Finland, Estonia and Lithuania. Up to 70% of total electricity consumption in the Nordic market is traded through this single entity (Wikipedia)

Ålesund Ålesund’s entry as one of Norway’s oil cities is based on its provision of shipbuilding expertise. Several shipping companies are head-quartered there, Farstad, REM, Rolls-Royce Marine, STX, Ulstein and Volstad Marine to name just six. Currently STX, Rolls-Royce and Ulstein are participating in a new programme of industrial placements offered to students at Ålesund University College who are studying production and system design and shipbuilding design. The college was formed in 1994 during reorganisation of higher education throughout Norway in which three institutions, the College of Marine Studies, the College of Engineering and Ålesund College of Nursing were merged. Photo: istockphoto

Harstad Harstad has to be added to Norway’s oil cities after Statoil signalled plans to open a new operations centre there to serve the forthcoming Asta Hansteen development in the Norwegian Sea. Starting up in the first half 2013 the new Harstad centre will take over operations for the Norne and Snohvit fields, and represents a strategic move by Statoil further north. “This will boost our presence in Northern Norway and help ensure added value from the Northern fields in the future,” declared Statoil chief executive Helge Lund as he announced the move, adding: “Ever since the merger in 2007, and the setting up of Operations North in Stjørdal, we have expressed our intention of establishing a new operational area in the North when activities and materiality justified such an industrial decision – and we are now seeing that level of activity,” Lund said. Under Statoil’s northern plans, Harstad could eventually become the operational centre for the Skrugard and Havis discoveries, now known as the John Castaberg

development. “In wishing to base the Aasta Hansteen operational organisation in Harstad, we are envisaging the possibility of synergy effects obtained from a joint localisation with the Norne field,” declared Øystein Michelsen, Statoil’s executive vice president for development and production in Norway. He said the new operational organisation will also boost competence and enhance the specialist companies in the surrounding area. Harstad becomes the fifth operational centre for Statoil on the Norwegian Continental Shelf. Bergen already has responsibility for Operations North Sea East and West. Operations South are based in Stavanger, and Operations North in Stjørdal – which is to be redesignated “Operations Mid.” Between 30 and 50 new staff could be recruited for the Harstad operations centre, where Statoil already employs 280 Norne operations.

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Kongsberg No mention of Norway’s oil cities could be complete without Kongsberg, synonymous with the name FMC Kongsberg, one of the outstanding suppliers of subsea technology to the offshore oil and gas industry worldwide. Back in 1993 US-based FMC Corporation bought out Kongsberg Offshore from Siemens. Located at Kongsberg Technology Park, the company now employs around 2,500 personnel. Today Kongsberg is the headquarters for FMC Technologies eastern region, where workshops, laboratories, project management and product engineering takes place.

Kristiansand Major oil service companies National Oilwell and Aker Solutions are located in Kristiansand, as well as Siem Offshore. While it is host to a raft of other energy industry related companies too, Kristiansand is backed up by academic expertise at the University of Agder which can boast more than 9,500 students and staff, offering more than 200 educational programmes. The city hosts the Norwegian School of Management, the Gimlekollen School of Communication, offering journalist training, and Ansgar College provides studies in religion, music and psychology. The city’s port is one of the country’s busiest, and historically it was among the first stops for shipping from Denmark, England and the Baltic countries. Now at the forefront renewable energy and technology development, Kristiansand’s most significant business sectors remain oil and gas engineering which is being boosted by the NODE – Norwegian Offshore and Drilling Engineering – network, and energy processing. The Eyde network in the city comprises 11 companies specialising in materials technologies which are aiming to provide solutions for environmental and climate challenges, while construction and tourism also provide significant activity.

Hammerfest As the most northerly town in the world, at a latitude of 70 degrees, and once a garrison town after an attack by the British in 1809 during the Napoleonic Wars, Hammerfest today – which derives its name from the old Old Norse words “Hamarr ” referring to a steep mountainside and “festr” for fastening boats – is also the most northerly Liquefied Natural Gas plant in the world. Through its connection to the Snøhvit field gas terminal on adjacent Melkoya island, Hammerfest acts as the centre for the management of the Snohvit development. In large part due to Snøhvit, Hammerfest’s population has grown in recent years – by as much as 30% according to Statoil - after it created 250 jobs at its Snøhvit LNG facility, while as many again provide related support services. Overall, Statoil has created around 1,300 new jobs in the town as a result of the development, in a town with only 10,000 inhabitants.

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Photo:J Adde

Trondheim Apart from being a power house of petroleum industry knowledge provided through the Norwegian University of Science and Technology NTNU – the city is also home to Det Norske, one of the country’s newer offshore explorers. Trondheim is home to further petroleum expertise which is being developed by Sintef Research – which bills itself as “...the largest independent research organisation in Scandinavia,” which has divisions specialising in petroleum research, as well as materials and chemistry. A previous Sintef project was devoted to researching electric power systems for subsea

systems and transporting oil and gas. Advanced engineering, innovation in measuring techniques, complex analysis and control system solutions, industrial processing and materials engineering and new safety and environmental standards are some of the areas of expertise provided within Trondheim and its environs. Recognising the skill base available in the region, Statoil has previously sought to court NTNU graduates in the city with their 40th anniversary recruitment drive.

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Bergen Skipsinnredning Frank Mohn AS Roughneck

Company Profiles Oil Cities

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BERGEN SKIPSINNREDNING 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.

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We offer a wide range of services to the rig industry, such as:

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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.

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Pumping Systems - to the world oil & gas

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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.

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Beyond Norway Exporting expertise

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The next huge market for Norwegian suppliers Statoil’s vast resources and growth plans provide great opportunities. Statoil has recently secured significant interests and resources onshore in the United States. During the summer Statoil will secure their third operated license and it now has a total resource estimate of 2.7 billion boe there.

The United States has the most “There are good conditions for the extraction of resources from shale in the U.S. Here we have good infrastructure, good service providers, effective technology and a good relationship with landowners who get royalties. Other areas lack much of this, therefore we choose to invest first in the United States,” says Torstein Hole, Statoil’s senior vice president for land-based operations in the US. Hole is leading an initiative that offers the fastest growing resource base for Statoil, with high expectations for the future.

Must increase significantly The oil company aims to increase its daily production to 2.5 million barrels a day by 2020. Up to 500,000 bbls of these will come from North America, and of these, 300,000 bbls will come from onshore operations in the region. “I’m sure we will be able to deliver this. We also know that these fields are in the early stages, so they can give more than we think today. In addition, it is natural to look at other opportunities in the region than the resources we currently own,” says Hole.

Started five years ago Statoil entered the Marcellus shale market in 2008 through an alliance with Chesapeake Energy Corporation. Since then it has expanded its acreage portfolio in the United States, and developed operational capacity. Statoil’s equity production of Marcellus shale gas is expected to increase by at least 50,000 boe in 2012 to at least 200,000 boe after 2020. The development of this area will include the drilling of thousands of horizontal wells over the next 20 years. Late in 2012 Statoil became an operator in the Marcellus region through the purchase of approximately 280 square kilometers (70,000 net acres) in the Marcellus Formation. Statoil says today the resource estimate in this area is 2 billion boe.

B E YO N D N O R WAY

New acreage The second area in which Statoil soon will be operating is the Eagle Ford shale area in Texas. This was purchased in 2010, and it recently took over a third rig there, and in July Statoil became the operator of the drilling as well. Eagle Ford stretches across 24 counties in southeast Texas from the Mexican border. It was discovered in 2008 and is considered to be one as the latest shale plays in the US. The first Initial data suggests that it may be one of the largest onshore oil and natural gas discoveries in the past 50 years. Resource estimates here are 360 million boe according to Statoil. In 2011 Statoil became owner and operator of licenses in Bakken Shale and Three Forks formations in North Dakota and Montana through the acquisition of Brigham Exploration. The deposits of oil in the Bakken and Three Forks formations are among the largest in the United States. Tight oil reservoirs are being developed in a similar way as shale gas

and liquids with long lateral wells and hydraulic fracturing, and have similar production profiles. Commercial production of tight oil is a relatively new activity that has grown rapidly in recent years.

- Learn from those who know it “Statoil’s approach to our operations onshore US has been taking things step by step. We have entered into partnership with those who are here – and have the knowhow. We have learned from them and gradually approached the operatorship. Those who have knowledge and experience in offshore operations could probably know something about this, but a lot needs to be learned,” says Hole. Statoil currently has no pure Norwegian suppliers to these fields, but Hole would like that to happen. “There is a huge demand for speed so you have to be able to make quick decisions. One must also have low costs, use new technologies and help to drive development forward. To be successful, I think it is right to team up with someone who´s already here,” says Hole.

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IR Vision AS OTD

Company Profiles

IR Vision AS utfører Petrokjemiske Inspeksjoner innen bruk av Infrarød Teknikk eller Termografi. Våre inspeksjoner har fått stor tillit innen on/offshore industrien og våre kunder er: n BP ConocoPhillips n ExxonMobil Offshore operatører på Engelsk sokkel. … for å nevne noen. n

Shell

Statoil

B E YO N D N O R WAY

DnV

Våre inspeksjoner deles hovedsakelig i 2 grupper: Gass lekkasje søk i prosess anlegget ved bruk av et spesielt infrarødt kamera som ser disse lekkasjene i sann tid. Funn blir logget, målt for lekkasjegrad og rapportert til område operatør og installasjons ledelsen samt allokert person ell på land. Rapport består av et skjema med digital bilde og en video som viser lekkasjen samt all nødvendig informasjon om lekkasje stedet for lett identifikasjon ved utbedring av installasjon personell. Vi er Norges største og mest avanserte selskap innen Gass Lekkasje Inspeksjoner IR Vision AS bruker følgende gass kamera: OPGAL Eye C Gas som også er EX Sertifisert og er det eneste kameraet innen dette segmentet som har denne sertifiseringen. Også IP 65. IR Vision AS har også agenturet for salg av dette utstyret innen Norge. Vennligst kontakt oss for mer utfyllende informasjon eller en demo. Den andre type Petrokjemiske Inspeksjoner som vi utfører med stor suksess er Termografiske Inspeksjoner av prosess annlegg av følgende men ikke begrenset til:

Avleiring i Separator

n ■ Scale

deteksjon i alle Olje og Produsert Vann linjer og systemer. Vi difrensierer mellom harde scale avleiringer som Barium Sulphate og mykere som Karbonater. Kvantifiserer tykkelser. n ■ Deteksjon av faste avleiringer i Separatorer og tanker, kvantifiserer høyden av disse avleiringene. Er til stor nytt vedrørende nødvendig kjennskap til separasjons effektivitet i separstorer. n ■ Identifisering av områder på isolerte linjer hvor der kan være fare for rust – tærings angrep. n ■ Lekkasjer i sikkerhets ventiler (PSV).

Scale i Olje linje

IR Vision AS har detektert MIC i linjer, men dette er en meget krevende inspeksjon og betinger spesielle forhold. n ■ Inspeksjoner og detaljert område rapportering av varme overflater på exhaust kanaler hvor temperaturer kan ligge høyt over normalt nivå.

Scale i produsert vann linje

n ■

IR Vision AS Postboks 252, 40 98 Tananger

Overtemp på exhaust kanal

Tlf. 51 64 07 33 • Faks 51 64 07 34 • www.irvision.no • irvision@online.no

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15 Stavanger, Norway (22)-23-24 October 2013

Visitors

Exhibitors

25.000

510 540

27.500

480

25.000

420

22.500

360

20.000

300

17.500

240

15.000

180

12.500

120

10.000

2010

2011

2012

2010

2013

3.000

2012

2013

90% increase since 2010

131% increase since 2010

Young Professionals

2011

Speed Networking

410

Booked stands

488 510

3.520

430

3.080

410

2.640

390

2.200

370

1.760

350

1.320

330

180

880

310

120

440

290 2010

2011

2012

2013

600% increase since 2010

480 420 360 300 240

2010

2011

2012

2013

33% increase since 2010

2013

22 available stands per 12.June 2013

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