EIDESVIK A m agazine f ro m the environmental s hipping company in Nor way Eidesvik Offs hore ASA - Sp ring 2016
A Green Milestone for Eidesvik p.10 Innovative Maritime Technology p.12
Meet the Fleet Managers p.14
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I like to think of Eidesvik as a sturdy house built on a solid foundation, able to face any season and weather any storm.
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Jan Fredrik Meling
Green Optimism in the Face of Dark Clouds Norway’s oil and gas industry is facing hard times, and Eidesvik is not immune. This is the most serious crisis our company has faced since the 1980s – a crisis that requires us to show commitment to our vision, and to prove our ability to weather the storm. Throughout many years we have built an organisation of highly skilled and knowledgeable people. We have grown conservatively, one brick at a time. As a result we are less vulnerable to market turbulence than most of our competitors. I like to think of Eidesvik as a sturdy house built on a solid foundation, able to face any season and any weather. The two pillars of the roof are our people and our fixed assets such as vessels and equipment. Many companies tend to be over-focused on the financial assets. When they neglect to develop and nurture their organisation, they risk their entire house collapsing. I believe that Eidesvik’s conservative and long-term focus on its organisation and human capital makes our company far more robust and able to weather these tough times.
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These times are testing the solidity of our “house”. Although Eidesvik is not experiencing any liquidity problems right now, we must be realistic about the seriousness of the unfolding challenge, and know that we may be facing many tough years. Admittedly, unless the market improves within the next few years, even Eidesvik will find itself in heavy seas. Fortunately, we also have reason for optimism. Our company has entered into two very promising contracts. Last year we started commercialising an innovative fuel-saving battery technology. We signed a two-year contract with Statoil for the Viking Energy, where we’ll be utilising the battery solution; and we extended the Viking Queen’s contract with Lundin, which also makes use of this technology. Historically, Eidesvik has focused on three areas of business: platform supply vessels (PSVs), seismic vessels, and subsea. Last year we added a fourth – offshore wind power – as we secured a contract with Siemens Wind Power for the Acergy Viking. For Eidesvik,
this is a pioneering effort, and our team did a great job winning this contract. I believe the support offshore-based wind power may prove to be a fruitful new market for us. In addition, we have ensured assignments through 2016 for our newest and largest vessel, the MS Viking Neptun. In these tough times, that is extremely important for us. The difficult times our industry is experiencing has led to reductions in manning, offshore as well as onshore. This is challenging and sad for all of us, but our employees continue to display an excellent team spirit. That deserves praise and respect! Thank you everyone, for your hard work! Regards Jan Fredrik Meling CEO
Meet the
HSE p. 6
CONTENTS Green Optimism in the Face of Dark Clouds 2
A Green Milestone for Eidesvik p.10
News in Brief
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Making Life Simpler and Safer at Sea
6
Celebrating Half a Century at Sea
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Relentless pursuit of new contracts
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A Green Milestone for Eidesvik
10
A Leader in Innovative Maritime Technology 12 Not a Single Boring Day at Work
14
Securing Eidesvik’s Most Important Asset 16 Keeping Eidesvik on Track
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Lessons Learned on a Laid-up Ship
20
Greetings from: Subsea Viking Viking Neptun and Viking Energy
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Internal Magazine 2016, Vestvikvegen 1, N-5443 Bømlo, Norway, Phone: +47 53 44 80 00 Email: office@eidesvik.no
Fleet Managers p.14
Editors: Torill Barane and Lauritz Eidesvik (Eidesvik), Jonas Sætre, and SYDVEST. Translation Olav Grinde. Graphic Production: SYDVEST Photos: Magne Langåker (SYDVEST), Øyvind Sætre and Arvid Samdal.
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NEWS IN BRIEF
MINI PORTRAIT
All of our friendly personnel coordinators assembled. This group ensures all employees at sea will get to work safe and sound. They do a great job and make sure that sea personnel have all necessary procedures in place, and will muster aboard at the right time. From left: Kjersti V Hovland, Sissel G Dagsland, Silje Anita Vorland, Knut Norheim and Else Beate Lønning.
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Olga Kårbø Olga Kårbø started started in Eidesvik before many of her colleagues were even born. She is a true veteran of the company, with her impressive 33 years. Working in the payroll department, she is responsible for getting the right payment out to every Eidesvik employee. “I am very satisfied with my job. We have a nice working environment here with many friendly colleagues. In addition, it’s nice to live so close to work.” The last year has been extra challenging for Kårbø, as the new crew rotation has made it more complicated to calculate the correct hours. “There have been many phone calls, to say the least. I understand that it may seem rather complicated to people, especially to crewmembers who are changing rapidly between two different rotations.” Luckily, she has helpful tools that make her job easier. When she first started working in Reception back in 1983, everything was done manually. “We had huge books in the reception with all the information for each ship, and we used Telex to communicate. I am very glad we use computers today.”
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Per Sigurd Wathne When there is a a technical problem on board a ship, Technical Inspector Per Sigurd Wathne is the man to call. The ship engineer has worked more than 20 years in Eidesvik. Before his current position, he was Procurement Manager, and he has also worked in the project department. “In reality, I am the vessel’s onshore contact person when it comes to technical challenges. Everybody on our vessel knows who I am.” Wathne is responsible for the supervision of the ships, shipyard maintenance, budget control and day-to-day operations. The overall goal of his job is clear: to minimize downtime for every vessel, and to keep costs to a minimum. Wathne praises the business culture in Eidesvik. “I have considerable freedom in my job, and I feel trusted to take on new tasks and responsibilities. The people who work for Eidesvik are not afraid to work hard – there are no typical whitecollar types here.”
NEWS IN BRIEF
A Huge Success for the Viking Neptun The timing could definitely have been better when Eidesvik’s largest and most ambitious vessel yet to be built sailed out of the shipyard. Nonetheless, in her first year of operation the Viking Neptun has surpassed every expectation. Thanks to a contract signed with Technip, a French oil services company, the 145-metre-long Viking Neptun immediately started operating for its client, installing spool-pieces in Statoil’s Gullfaks field. In fact, at year’s end, the Viking Neptun was given Technip’s prestigious Quality Excellence Award for 2015. “That is quite an auspicious start for the Eidesvik’s new vessel! Her crew has delivered an outstanding performance, meeting every deadline with precision. This has enhanced the Viking Neptun’s growing reputation and secured our vessel assignments through to at least the end of 2016,” says Gitte Gard Talmo, Chief Commercial Officer for Eidesvik. She adds: “Technip is a strategically important customer for Eidesvik,” says Talmo before emphasising: “Our contracts are won on the basic of Eidesvik’s track record, providing top-notch operations, and on the reputation of our vessels and crews.”
Meling new leader of Haugesund Shipowners Association
CONTRACTS 2016
Length of contract
2017
2018
Renewal option
2019
Viking Queen
Viking Lady CEO of Eidesvik, Jan Fredrik Meling, has been elected the Viking Nereus new Chairman of the Board of Haugesund Rederiforening, the Viking Princess umbrella association for all shipping companies in the region Viking Prince between Bergen and Stavanger. Viking Athene “As I have been a board member for six years, the time had Viking Energy come for me to step up as the new Chairman. It’s important Viking Avant also because Eidesvik is one of the vital members of the Viking Neptun association.” of the Seven Viking Meling points out that the Haugesund branch Subsea Viking association has significant national influence, partly because Acergy Viking the Norwegian Maritime Authority is based in Haugesund. Viking Poseidon “Even though we are competitors within the shipping Viking Vanquish industry, we have many common interests. The association is Viking Vision very important for the loc al industry. Working for a common Veritas Viking interest makes us stronger together,” Meling says. This is the second time Eidesvik has held the Vantage chairmanship Oceanic Vega of the association; the founder of the company, Lauritz Ocean Sirius Eidesvik, was the first to hold the position. Now Jan Fredrik Meling has taken on the challenge.
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HSE
Vice President HSEQ Sagebakken has been responsible for relaunching the Safety Management System in a new and straightforward language.
Making Life Simpler and Safer at Sea “By the end of this year, we shall have implemented Eidesvik Management System, reducing the length of safety procedures by two-thirds. Our company is simplifying work tasks while making life at sea even safer for our crews,” says Terje Sagebakken. He admits that making crewmembers leaf through hundreds of pages of safety procedures was hardly the best way to promote safety and proper routines on board Eidesvik’s vessels. Not only was the amount of written information overwhelming, but technical jargon made many important instructions needlessly complicated.
He points out that almost all of Eidesvik crewmembers have English as their second language. It’s vital that all procedures and checklists be quickly and easily understood. The very fact that it has been possible to cut the length of the manual to one-third of its original size – without losing any important information – demonstrates that these procedures were unnecessarily complicated.
The new manual will be available in two formats on all Eidesvik vessels: an electronic version, and a printed version with laminated pages. During the editing, Eidesvik sought expert assistance from the aviation industry, hiring two consultants who That is why, in the autumn of 2014, Sagebakken was given responsibility for relaunching the Safety have both worked for the airline company SAS. “Our revised manual will be far more userManagement System in a new and simpler lanfriendly and much easier to understand. I am guage. The new version of the safety manual will be introduced in Q4 of this year, and renamed the confident that this will increase safety on board Eidesvik Management System. The greatly shorte- our vessels, deepen the understanding of various ned manual contains procedures and checklists for routines and established procedures, and help us avoid undesirable incidents. In addition, I all tasks to be carried out at sea. “The existing procedures have not been used as am certain this will make life simpler and more widely as we would have liked. And the reason for efficient for our crew,” says Sagebakken. that is probably their poor presentation; they were Sagebakken underscores that Eidesvik continues to be uncompromising with regards to safety. written in a needlessly complicated English using The recent focus on cost reductions has in no many technical terms,” says Sagebakken.
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way weakened the company’s HSE action. For example, Eidesvik’s management is continuing its practice of follow-ups, visiting vessels and meeting with health and safety officers. In 2015 alone, 25 such visits were carried out. “And we are still rewarding vessels that maintain a record of zero injuries, by adding something extra to their welfare funds. Our goal is simple: that each and every crewmember on Eidesvik vessels return home safely and in good health,” says Sagebakken. •
A Friendly Competition
Last year, the winner of Eidesvik’s physical training competition was the crew of the Oceanic Vega. Their reward was having their welfare fund increased by NOK 10,000. The individual contest, which required a minimum of 250 training sessions in the course of the year, was won by Per Ørn, an electrician on the Geowave Voyager.
NEWS
Celebrating Half a Century at Sea The fiftieth anniversary was among others thing celebrated with a book describing our exciting history. Kolbein Rege, Chairman of the Board have been project manager for the Anniversay Book.
Last year, Eidesvik Offshore celebrated its 50th anniversary. That was a proud day for Kolbein Rege, Chairman of the Board. Festivities were held near Eidesvik’s headquarters in Langevåg, at Langevåg Bygdatun, a popular community arena built eleven years ago with the support of the Eidesvik family and company. Nearly 300 current and former employees, and business partners, were invited. The celebration included a banquet dinner, music and a theatrical performance. Guests were also treated to a presentation on the company’s history, including its colourful beginnings. “The highlight was the talk between Kristian Eidesvik, one of our founders, and three veterans from those early years, when we were in the fisheries business,” says Kolbein Rege. There is no doubt that the celebration of a shipowner as successful as Eidesvik deserved fireworks and grand festivities – but as every sailor knows, overdoing the parties is never a good idea when you’re in turbulent waters. “It was a more sober and understated celebration than it would have been in a less difficult market situation. I am sure our employees understand why our celebration was somewhat low-key,” says Rege. The 50th anniversary also saw the publication of a book documenting Eidesvik history, penned by Brynjar Stautland, a Bømlo-based author who worked closely with the Eidesvik family and company employees. The book Mot og mannskap (Crews and Courage) arrived fresh from the printer just in time to be wrapped as a Christmas gift to employees. It’s also available in local bookshops and in the Bømlo Public Library. The book tells the story chronologically, starting with the two Eidesvik brothers’ early successes in fisheries. It documents the dawn of Norway’s offshore industry, and describes events up to the present day. Kolbein Rege underscores that the company’s never-ending search for opportunities has been a key success factor, enabling it to survive and thrive through 50 years.
“Eidesvik has always been a company focused on opportunity – not just today’s opportunities but identifying those that might open up in the future. That’s how it has been for 50 years. In addition, Eidesvik has always insisted on having the very best people and the best equipment, including developing new technology for our customers.” Eidesvik’s Chairman reflects on lessons the company might have learned from its long history, to help it steer a safe course in today’s tough market. “History has taught us that the market is always fluctuating. Even when the situation appears hopeless, we must bear in mind that what goes down almost invariably comes back
up. Eidesvik has weathered crises before. Today we must leave no stone unturned as we search for solutions and opportunities.” “Our present situation is extremely challenging. After the recent drop in oil prices, which has seen Brent as low as 28 dollars per barrel, oil companies have been forced to reduce costs as much as possible. Eidesvik, too, is compelled to carry out many cost-reduction measures, so that we can find the solutions needed for the future.” I hope and believe that we’ll get through this, but it will require continued good cooperation between our owners, our lenders and our employees.” •
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NEWS
From left: Anders Grønås Technical Sales Manager, Gitte Gard Talmo, Tommy Sandtorv Chartering Manager, Nils Himle Business Development Manager (not in photo) constitute the dedicated Marketing Department of Eidesvik.
Relentless Pursuit of New Contracts Eidesvik is going all out to win contracts in an extremely tough market by establishing a new dedicated marketing department. The most important criteria for winning new contracts are an excellent operational reputation and a strong track record, which have ensured many prosperous years for Eidesvik. But in today’s challenging market situation, where demand for vessels is at a record low and cost reduction has become the mantra for a whole industry, marketing expertise is more important than ever before. That is why, last summer, Eidesvik made the decision to launch its own marketing department. It is headed by Chief Commercial Officer Gitte Gard Talmo, who has extensive experience in Eidesvik. Her three colleagues in the new department were also recruited from long-time Eidesvik employees. “We are, essentially, the infantry in charge of building and strengthening our client network, responding to inquiries, and acting on signals from promising prospects,” say Talmo.
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Although none of the tasks are new, it is the first time Eidesvik has dedicated employees who only deal with marketing-related tasks. Most of the team’s time is dedicated to writing bids and tenders, responding to inquiries about Eidesvik vessels, and actively reaching out to prospective customers. Talmo praises the company for its decision to commit significant resources to establishing a marketing department in the middle of a crisis. Moreover, she is proud that Eidesvik managed to do this without having to bring in external expertise. “Our challenge is daunting, no doubt about it, but we are focusing on finding good ways of working together. The challenge is immense because the world’s oil and gas industry is facing extremely tough times. Depressed oil prices have resulted in record-low demand for vessels, with extreme downward pressure on market rates for the offshore services industry. Oil companies
are doing their utmost to reduce their costs, postponing or cancelling many projects.” However, this also has an upside; Talmo points out that these cost-cutting measures also have a positive effect. “Through the industry’s intense cost-cutting measures, in every phase of its operations, the break-even level is now considerably lower than it used to be. I think oil prices need only to reach a stable 50–60 dollars per barrel, before we see projects starting up again.” According to Talmo, the focus on cost reductions should make Eidesvik an attractive service provider, given the company’s strong focus on fuel efficiency. And thanks to innovative fuelsaving that Eidesvik helped develop, even greater savings can be passed on to the customer. “Our eco-friendly profile is clearly a competitive advantage. Fuel is a significant cost,
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Our eco-friendly profile is clearly a competitive advantage. « Gitte Gard Talmo
and it is easy for Eidesvik’s marketing team to highlight the potential savings of having a green fleet.” “We are doing our utmost to convert this advantage into long-term contracts. Our marketing department must be creative to obtain sufficient assignments for every vessel,” underscores Talmo. “Now is the time to look at new market opportunities, such as servicing offshore wind power installations, where we can make use of our expertise. However, I think it is also paramount to consider new forms of cooperation throughout the value chain, with our customers, subcontractors and other strategic partners,” says Talmo.
She pauses to reflect on our next question: which is most important, going forward, strengthening existing customer relations, or winning over new customers? “Eidesvik’s strategy has always been to build strong long-term relations with each customer. When you share a long history, you will be better equipped to face challenging times together. On the other hand, Eidesvik must look beyond its existing networks if we are to enter new markets. So I would say that both are equally important.” “Renewable energy is just one example of such a new market. Our first contract in this field was with Siemens Wind Power – it’s a strategically crucial contract with a leading market player, which may well open additional doors.
“The challenges we face are immense, and not every aspect of this job is fun. A great deal of patience is required. It’s important to be mindful of our victories, to savour each new contract won, to build enthusiasm and motivate each other. In our marketing department, we have a great team spirit and share a good sense of humour. That’s essential,” says Gitte Gard Talmo. •
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NEWS
A Green Milestone for Eidesvik Hard and systematic work has landed Eidesvik a contract with Siemens Wind Power, its first contract within the offshore wind production market.
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We’ll be tailoring vessels in close cooperation with our customer, an approach that is far more competitive than ordering newbuildings from a shipyard. « Lauritz Eidesvik
Chartering Manager Tommy Sandtorv and Vice President for Strategy & Communications Lauritz Eidesvik is looking forward to expanding into the renewable energy sector.
Thus, just after celebrating its 50th year, Eidesvik is adding a new chapter to its history, entering the renewable energy sector. For the company, this may be just as important as the earlier transition from fisheries to offshore services. Hard work and perseverance has landed Eidesvik a contract with Siemens Wind Power, its first contract in the offshore wind production market. Thus, just after celebrating its 50th year, Eidesvik, a company that once transitioned from fisheries to offshore services, is now adding a new chapter to its colourful history – entering the renewable energy sector. The Acergy Viking is being hired for service in German waters. Eidesvik’s subsea vessel will help install offshore wind turbines and put them into production. The ship is currently being rebuilt for its new mission and will be mobilised in midAugust. The assignment for Siemens is scheduled to last through April of 2017.
which the Acergy Viking is perfectly equipped to achieve,” says Chartering Manager Tommy Sandtorv. “Our vessel has exceptional manoeuvring capabilities and is able to maintain any position precisely even in harsh weather. In addition, the ship has cutting-edge equipment with very high uptime. That’s especially important to a customer such as Siemens, which has a strong focus on efficiency and performance and on maintaining production,” says Sandtorv.
that is far more competitive than ordering newbuildings from a shipyard. However, should this prove to be a success for Eidesvik, then building new ships specifically for the renewable energy sector is not out of the question.”
He underscores that the company must be humble and mindful of the fact that it needs to acquire new knowledge and skills to master renewable energy operations. Eidesvik will, after all, be competing against players that are firmly established in this sector. Nonetheless, Eidesvik is renowned for its key strengths: being extremely good at opeEidesvik’s plan to enter the renewable energy rating vessels. sector was hatched about 18 months ago, after Moreover, Eidesvik has a reputation for being the board of directors requested a market report flexible and service-minded, bringing a fresh analysing this segment and a proposal for how approach to this growing market. Eidesvik is Eidesvik should enter the market. A fruitful diacurrently recognised as one of the most ecologue with Siemens followed and the contract for friendly shipowners in the field, after many years’ the Acergy Viking was signed just four months strong focus on green technology, exemplified later. “We have opened a door to opportunities – and by its transition to LNG vessels and the implementation of innovative fuel-saving battery now we have to maximise them. Our ambition With visible pride, Lauritz Eidesvik, Vice technologies. is to grow, using the Siemens contract as a President for Strategy & Communications, “Our green profile should be a significant springboard into the long-term contracts market,” says: “This contract is a milestone for Eidesvik. competitive advantage in the renewable energy says Sandtorv. Obviously, obtaining assignments that keep our “Right now, our focus is on obtaining contracts sector. Having this extra leg to stand on will make ships in operation is vital, but this is opening up a new market segment for us and creating important for vessels that are currently idle, and on tailoring Eidesvik less vulnerable to the fluctuations of the oil and gas market,” concludes Tommy Sandtorv. them for operations related to offshore wind contacts.” «Although the oil and gas segment will recover “The Acergy Viking will do what we call ‘walk power. We are showing prospective customers the with time, the offshore wind market will still vessels we have available, and they can specify to work’ operations – performing wet-docking be an equally important strategic segment for operations and bringing wind turbine technicians exactly what they need,” adds Lauritz Eidesvik. Eidesvik.» says Lauritz Eidesvik. • “In other words, we’ll be tailoring vessels in so they can work on the offshore installations. Their tasks require precise and stable positioning, close cooperation with our customer, an approach EIDESVIK MAGAZINE 2016
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NEWS
A Leader in Innovative Maritime Technology Eidesvik’s long-term efforts to achieve greater energy efficiency for its vessels are bearing fruit. In 2015, the company won two pioneering green contracts. That may well make Vermund Hjelland, Vice President Technology & Development the busiest man in Eidesvik.
“There is no doubt that I am working too much these days,” admits Hjelland. “Our top priority is preparing the Acergy Viking for her new assignment: the installation of wind turbines in the North Sea, on behalf of Siemens Wind Power. Extensive rebuilding and modifications are necessary to tailor the vessel for this task, before delivery in August.” “It’s a big job and the timeline is tight. New installations on our vessel include a new gangway and boatlanding, and there are many modifications.” Most of the work on the Acergy Viking is being done by Westcon Yard on Karmøy. The catwalk is delivered by Uptime. Vermund Hjelland is also supervising another major project: the installation of fuel-saving battery technology on the Viking Energy. This pioneering technology, which Eidesvik helped develop, will be used in a completely new way during the vessel’s coming two-year assignment with Statoil. “We will use this battery technology for dynamic positioning, i.e. for automatically maintaining a fixed position at sea. Normally, two generators are used during such operations. This is the first time a fuel-saving battery system has been approved for use in lieu of one of the generators.”
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In addition, this battery technology, which was first tested on the Viking Lady through a FellowShip Project, has been installed on the Viking Queen. Here, a generator is being used to charge the batteries, and the batteries will come into play on demand, as in a hybrid car. “What is currently being done on board the Viking Energy and the Viking Queen is probably just as groundbreaking as the introduction of LNG propulsion was in its time,” says Hjelland. He underscores just how important these new contracts are for Eidesvik: “These are challenging times. Despite that, we have attained two crucial objectives. Firstly, to secure work for our vessels, and secondly, to be a leader in the development of innovative maritime technology. I am convinced that these are two success factors that will help enable Eidesvik to navigate these heavy seas.” However, these contracts are not the only thing that keeps Hjelland exceptionally busy. The company’s enhanced focus on costs have given him a much broader responsibility for projects. Hjelland points out that it has become difficult for Eidesvik to carry out as much technology development as previously. “These are tougher times for development. It has become essential for Eidesvik to seek out
grants, so that development projects become selfsupporting. Fortunately, for many years we have won grants from Enova and the NOx Fund, and this has become more important than ever. Vermund Hjelland is convinced that it is only a question of time before we see a large-scale commercialisation of fuel-cell and ship battery technology. This, however, requires a long-term engagement. “As long as we are willing to take the lead and ensure the installations are done, we will automatically see price reductions. It’s a simple question of economies of scale.” The industry’s strong focus on cost-cutting measures gives Eidesvik’s focus on energy efficiency, which is firmly established and known, a competitive advantage. It’s a strong priority to continue the company’s success with EEEP (Eidesvik Energy Efficiency Program). “In the PSV segment alone, we have achieved 20 percent fuel savings just in the last four years. We are very happy with that.” In addition to fuel savings during operations, Eidesvik’s entire fleet has achieved a 10-percent reduction in fuel consumption due to innovative technology, such as the use of fuel-saving battery system.
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We have attained two crucial objectives: to secure work for our vessels, and to be a leader in the development of innovative maritime technology « Vermund Hjelland Vermund Hjelland
“As we see strides in battery technology, we expect to see a continued reduction in fuel consumption. But as far as operational measures go, I think we are approaching the limit for how efficiently we can operate our vessels. Our main focus right now is to implement best practice
across the board, through well-directed efforts by the crews. Reduced fuel savings are also improved through emissions monitoring where fuel consumption is registered several times daily during vessel operations. This data allows Eidesvik to analyse the rate of fuels consumption during various operational modes, and compare the results with those of other similar vessels. “This allows us to find the reasons for those differences, and to identify what we might do differently. Interesting, these measures cost absolutely nothing – in fact, I wonder why every shipowner isn’t doing this.”
“I think we will see more widespread implementation of hybrid propulsion systems on our vessels, and further improvements in LNG technology. As we gradually move away from diesel, it will be interesting to see whether hydrogen and methanol will serve as energy sources. Nonetheless, I think diesel will continue to be the primary source of power, because the range of fully electrical vessels is presently too limited.” “That said, within ten years, I predict we’ll see renewable energy account for between 20 and 30 % of our needs. Should I be mistaken, come 2026, I hope no one remembers what I just said.” •
Clearly, Vermund Hjelland is a man who thrives on challenges. Ours is a simple question: What are the biggest technological changes that Eidesvik is likely to see in the next ten years?
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NEWS
Not a Single Boring Day at Work Meet Eidesvik’s two new Fleet Managers. One of them has top-notch engineering expertise, and the other decades of experience at sea. Inge Rune Kallevåg and Ellen Sofie Hiberg Ottesen were recently promoted to Fleet Manager PSV and Fleet Manager Subsea.
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NEWS
The summer of 2015 saw a reorganisation at Eidesvik. New positions were created, and many employees embraced new challenges. Two of them were Inge Rune Kallevåg and Ellen Sofie Hiberg Ottesen, who were promoted respectively to Fleet Manager PSV and Fleet Manager Subsea. Both had long been important members of Eidesvik’s team. Inge Rune worked as an offshore captain for many years, until he transferred onshore, as Project Manager for Eidesvik’s Energy Efficiency Program (EEEP). Later he became Development Manager. He has now been asked to step up and assume overall responsibility for the company’s PSV activities. He explains how the ballast of his experience at sea can be a handicap as well as an advantage. “When a technical issue arises, it is often similar to other situations I have experienced on vessels, giving me a quick grasp of the problem. However, at other times it would be an advantage to approach a problem with fresh eyes.” Ellen Sofie, a civil engineer who studied at the Norwegian University of Science and Technology (NTNU) in Trondheim, started in Eidesvik in 2007. Prior to her new job as Fleet Manager, she was in charge of the company’s newbuildings, and previously a project manager in that department. “We have very different backgrounds. Ellen Sofie has the in-depth engineering expertise, while I have plenty of practical experience. I believe we can complement each other,” says Inge Rune.
One consequence is that the company, which traditionally has had stable long-term contracts, is now having to deal with a far more limited time horizon – sometimes only two or three months into the future. Particularly for the PSV segment, today’s contracts are of short duration, with some vessels forced to operate on the spot market. “The ongoing crisis results in uncertainty and contracts of short duration. We’re seeing vessels moving quickly in and out of port and customers changing suppliers more readily. The tempo and turbulence has increased dramatically,” says Inge Rune. They are currently sitting on two laid-up ships each, which they point out is not that bad. Their goal and hope is to keep all other vessels in operation at least through 2017. “Eidesvik’s adjustment of crew rotations has helped prevent the lay-up of additional ships. We
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We win contracts because Eidesvik is service-minded and focused on quality Ellen Sofie Ottesen
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have contracts to keep us busy for a while, but keep trying to line up more assignments because we don’t know how long they will last,” he adds. No stone is left unturned in their efforts to line up work and operate as efficiently as possible. However, the fleet managers emphasise that, despite the tempo, Eidesvik continues to have an uncompromising focus on safety on board every vessel. Eidesvik enjoys an excellent reputation for safety and fuel-efficient operations, two factors that are extremely important for securing contracts. “Our statistics are excellent, and the great work done by our crews results in customer satisfaction and repeat assignments. We win contracts because Eidesvik is service-minded and focused on quality,” says Ellen Sofie. In a field currently dominated by negative news, it’s easy to become pessimists. But as the new fleet managers describe the bigger picture, it is clear that they are optimistic about Eidesvik’s future. “We’re trying to do a better job of communicating good news as well, in order to generate well-founded enthusiasm and optimism throughout the company. Yes, times are demanding for all of us, but together we shall weather this storm!” •
Their teamwork should be easy, as their office doors are right across from each other. They’ve agreed to work closely, to find optimal solutions to the fleet’s daily challenges. “We’re both starting with a clean slate, so to speak. At the outset, our intention is to have similar practices for both parts of our fleet, to learn from each other and to continually strive for best practice. This will also ensure that crewmembers who move from one type of vessel to another, know what to expect,” says Ellen Sofie. “Our workdays will of course be coloured by today’s challenging market situation. I think it’s safe to say that we won’t be bored. There are a lot of meetings, in-house and external. Right now the situation is extremely dynamic, no two days are alike. It’s challenging but also very exciting,” she adds.
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NEWS
Securing Eidesvik’s Most Important Asset Eidesvik applys new measures to keep its highly skilled people during this time of crisis.
VESSELS AND CREWS are the company’s most important assets – these are, of course, the very definition of a shipping company. Crew costs account for fully 70 percent of Eidesvik’s operating expenses. When the market is suffering its worst depression in decades, cutting costs becomes paramount, and this inevitably has human consequences. The unenviable task of reducing crew costs has rested on the shoulders of Erling Lodden, Vice President of Human Resources. His workday has been dominated by the consideration of possibly moving vessels to registration abroad, early retirement, and severance packages – and, worst of all, lay-offs. “This has been a demanding situation, especially for our employees, but also for the management. The personnel changes have made our vessel operations extra challenging,” says Lodden.
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Implementation of these changes started in 2013, when in conjunction with the launch of the joint venture, CGG Eidesvik Ship Management AS, the registration of Eidesvik’s seismic vessels was moved abroad. The autumn of 2014 saw the need for further measures, and many of the company’s PSV and subsea vessels were flagged out as well. The latest ship to be flagged out was the Acergy Viking, in July 2015. This is the reason why 114 sailors have left Eidesvik since 2013. Of these, 44 positions were eliminated through the natural loss of personnel, or after employees accepted severance packages. In addition, ten positions have been eliminated amongst the office staff at the company’s headquarters in Langevåg, partly in consequence of the joint venture mentioned above. Although this downsizing was triggered by the ongoing crisis in the oil and gas industry, there is no hiding the fact that the high Norwegian salary
level and foreign regulations are contributing factors. “Eidesvik has traditionally been a Norwegian company, sailing under a Norwegian flag and making use of Norwegian expertise, regardless of which waters of the world we have sailed. Unfortunately, such a policy became unsustainable due to the high cost levels and the growing regulatory demand from various countries that we make use of local crews.” Erling Lodden praises employees for the understanding they have shown of the company’s challenges and tough choices. He points out that not a single one of the job eliminations or crew changes have been challenged by the trade unions, or ended up in court. “We have been totally open throughout this difficult process, acting transparently and engaging in a positive dialogue with union
NEWS
“There’s no hiding the fact that the last couple of years have been trying times for the company. Even more so, I am extremely proud of our employees,” says Erling Lodden, Vice President of Human Resources.
representatives. In addition, we have updated our intranet site with news of the unfolding situation. I believe this is why we were able to attain such an orderly and professional process.” Last year, to avoid these reductions having an adverse impact on vessel response time, Eidesvik
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I am extremely impressed by the performance of Eidesvik’s team during these demanding times. Erling Lodden
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launched a “model for work-time reductions”, i.e. a new crew rotation schedule. The total of hours for each crewmember was reduced; the standard practice of one-month-on / one-week-off rotation was replaced with four- or five-weeks-on / eightor ten-weeks-off. Eidesvik had a clear objective: to prevent the loss of experienced and highly skilled employees. “We were in a situation where further reductions risked diminishing our pool of expertise. We were worried, because we had spent decades carefully and systematically building that very expertise. Our solution was the model just described.” “In hindsight, this was a very sound strategic decision. The new crew rotation improved the vessel response time, so that we could quickly put vessels on new assignments as they came in. This
measure improved our agility and helped reduce mobilisation costs, preventing the company from having to make additional painful cuts,” says Lodden. Even though earnings have been reduced for crewmembers, the response has been almost unanimously positive – and in fact, when our unionised employees put it to a vote, the proposal received almost 100 percent support. “I am very proud of the attitude of our employees. This has been a very trying time for the entire company. Everyone has felt the pressure to deliver improved results, even as they have been anxious about their jobs. I am extremely impressed by the performance of Eidesvik’s team during these demanding times,” says Erling Lodden. •
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PORTRAIT
Keeping Eidesvik on Track Some companies are fortunate enough to have multi-talents who fix a host of practical problems before anyone has even noticed them. Eidesvik has two such people: Hanne-Lene and Torill.
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PORTRAIT
There is not a boring day at the office for Torill Barane or Hanne-Lene Nesse Håvik. They handle everything related to the management of the head office, from meetings to more comprehensive events.
Torill Barane and Hanne-Lene Nesse Håvik have worked closely together since 2011. Whereas Torill was hired in 1998, Hanne-Lene started in 2011, during the building of Eidesvik’s new headquarters in Langevåg. You would be hard-pressed to find any detail of the company’s operation that they don’t know – the two of them keep the office running smoothly as clockwork! “We do our utmost to stay on top of everything related to the management of this office, from meetings to more comprehensive events,” says Hanne-Lene. Their duties and tasks are varied. Responsible for support functions at the office, they provide expert aid to many other employees working at Eidesvik headquarters. Torill and Hanne-Lene handle all the practical details around any event; they rent out the company cabins and holiday apartments to employees; and the two of them make sure news about Eidesvik is fully updated on websites and on social media. “The best thing about this job is the great colleagues we have, onshore as well as on the vessels, and the immense variety of our everyday tasks,” says Torill. “We never have a boring day – and if we want
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employees. Today Eidesvik, Eidesvik Invest, Bømmelfjord and Evik hava a total of 60 people working at their headquarters in Langevåg. “It’s been a true joy to be part of a growing company. The number of vessels has more than doubled during this period, often with one or two christenings a year,” says Torill. And the highlights? “Well, surely that must be the sheer variety of my work. And all the ship-christenings I’ve helped organise since 1999 – there have been quite a few! It was particularly exciting to be a part of the Viking Lady’s maiden voyage, to the world climate conference in Copenhagen in 2009.” When they’re off duty, her family life and two young children keep Hanne-Lene busy. Torill’s children have left the nest, leaving her more time to pursue her passion: the great outdoors. In 2016 she will complete her sixth North Sea cycling race. During the summer you’re more likely to find her offshore, sailing with her family. Hanne-Lene and Torill’s broad job description entails that they’re often asked to help out with
HANNE-LENE NESSE HÅVIK Age: 34 Job title: Administrative Secretary Family: Married, two children (a two-year-old son, and a seven-year-old daughter)
TORILL BARANE Age: 51 Job title: Administration Manager Family: Married, two sons 19 and 24 years, and two stepchildren
extremely varied tasks. They’re a valuable addition to any team when things have to be done right and on time. “We love this demand for versatility, and the two of us complement one another. If one of us is sick or on holiday, the other can easily step in and do the job. Torill and I have different qualities, but we’re a perfect fit,” says Hanne-Lene. •
We never have a boring day – and if we want to do something new, we can « Hanne-Lene
to do something new, we can,” adds Hanne-Lene. Hanne-Lene tells us that she has had a series of exciting challenges, helping out when it’s especially hectic in the Marketing Department as well as in the Vessel Operations Department. In addition, she steps in as a receptionist as needed. When Torill moved from the city of Sandnes back to her home village of Langevåg in Bømlo in 1995, she wanted a local job. When Eidesvik hired her in 1998, the company had only 15 office
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NEWS
Lessons Learned on a Laid-up Ship On a laid-up ship, its crew can carry out tasks that may be difficult at sea. And for trainees, it can be a golden opportunity to familiarise themselves with the vessel.
As you drive the scenic roads of Western Norway, it’s hard to see any signs of a crisis in the petroleum industry, the country’s biggest source of income. But if you look carefully, the evidence is there. In the ports you see ships, many ships – far more than usual. And they’re laid up. At Langevåg on Bømlo, a few minutes’ drive from Eidesvik’s headquarters, four of the company’s vessels are laid up. There are three more ships at Rubbestadneset, farther north on the island. You haven’t been able to see this many Eidesvik vessels in one place since the 1980s! The crew welcomes us aboard the seismic vessel, Veritas Vantage. The mood is friendly, even jovial. We’re offered a cup of instant coffee in the spacious ship saloon, and supermarket cake. The crew of five, ranging from an experienced captain to an apprentice just out of school, are responsible for maintenance on all of the seven vessels that are laid up in Bømlo. Despite their busy schedule, they make time for a chat. “There is plenty to do. Most of the crew is on shore. Provisions are plentiful, and much of the food has to be eaten before its expiration date,” says Chief Engineer Einar Aga. To a cursory view, this laid-up ship might appear abandoned, steadily deteriorating. Nothing could be further from the truth! For Eidesvik it is imperative to keep each and every ship in full readiness, prepared to respond quickly to new assignments. That means constant maintenance, and a very busy schedule for the skeleton crew. “There is more than enough to do, and so many things to keep in order,” says Håkon Stensen, Director of Laid-Up Ships.
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During lay-up periods, a vessel must have a crew that is large enough to ensure preparedness and guarantee an effective response to emergencies. Maintenance ranges from cleaning the decks to work on the engines. The key task is preventing corrosion. “When a ship is no longer in motion, internal condensation is inevitable, with a strong risk of corrosion. That why we fire up the engines and propellers at least once a month,” says Aga. However, there is also an upside. On a laid-up ship you can carry out major jobs that would be difficult or prohibitively expensive to perform at sea. “For example, we can overhaul the engines – and we can do so ourselves rather than bringing in external help. Besides, this work, done without being in a rush, gives us invaluable experience.” For newcomers and apprentices it’s definitely an advantage, because the old-timers can patiently explain everything, without the deafening roar of the engines drowning out their words. Besides, there are major restrictions on what apprentices are allowed to do at sea. “Yes, we can take our time and explain the finer details. Ironically enough, many apprentices are able to learn more on a vessel when it’s laid-up,” says Arne Vorland, manager for the lay-up team. Sebastian Nilsen Lund, an engineer apprentice, wholeheartedly agrees. While he is eager to sail out into the open sea, he appreciates the advantages of being so close to home. “It is exciting to work here, and I’m learning much about the systems on board. Besides, it’s
NEWS
The crew of five, ranging from an experienced captain to an apprentice just out of school, are responsible for maintenance on all of the seven vessels that are laid up in Bømlo.
really nice to be able to go home at the end of the day.” Kjell Andreas Thorsland is unable to hide that fact that working on a laid-up ship is quite a transition from serving as Chief Officer on the Viking Poseidon. “I have been her a little over a month, and I have worked eight-to-four jobs before – but that certainly wasn’t my intention when I signed up for a career as a sailor. All the same, I am grateful that I do have a job in these tough times, so I’m not going to complain.” A quiet life close to home suits Arne Vordland, the most experienced captain, just fine. He was recently working for GCC Eidesvik, a seismic joint venture company situated in Bergen, but
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It is exciting to work here, and I’m learning much about the systems on board. « Sebastian Nilsen Lund
was transferred home to Langevåg during the staff reductions. “I can appreciate how my young colleagues might feel. After all, they wanted to work offshore. But it’s less of a problem for us who are older and have already seen much of the world,” he says with a smile.
Vorland points out that in a field as susceptible to fluctuations as shipping is, lay-up periods are inevitable. Especially for a seismic vessel such as the Veritas Vantage. “Seismic has always been enormously volatile. It’s crazy when it’s quiet, and crazier when it’s full speed ahead. There never seems to be anything in between.” Sebastian Nilsen Lund certainly doesn’t look bored as he poses on deck for the photographer, high-pressure hose in hand. He is the youngest man on board, and there is plenty of time to listen to the yarns of the old seadogs. That and the endless supply of instant coffee just may be the perfect preparation for a life at sea. •
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NEWS
Greetings from Subsea Viking The Subsea Viking is approaching the end of a fantastic adventure west of Shetland. For the last 13 years, we have carried out subsea operations in the Foinaven and Schiehallion oil fields, which offers some of the most challenging weather in the world. The consensus is that we passed that test with flying colours. For vessel and crew, it has been an incredible project. During the last five years alone, more than 200 Eidesvik employees have served on board – some of them from the very beginning. Most of them can tell stories of strange rules, but all of us will remark on the amazing camaraderie between project personnel and the maritime crew. We’ve had a lively and sociable life on board.
our vessel. We are, of course, not starting with a blank slate as we change clients, although we do admit the vessel needs a thorough cleaning. We’re still unsure what the future brings. Our first destination is Karmøy, to install a new heli-deck, replacing the one that was heavily damaged this winter. Then we’re commencing a 100-day project for Shell. After that, we’re definitely open for suggestions.
1 MOB with the SSVK in the background. 2 Svein Gunnar Kristensen. 3 SSVK in the sun. 4 The apprentice is being instructed. 5 Scrabster. 6 Constitution Day is celebrated in the warmth at Le Trait, France. 7 Welfare award given from Technip and Tullow Oil after the completed mission i Ghana. 8 Linda Hooper and Ingvild Lønning are ready for the Fast Rescue Boat launch. 9 Viking Energy alongside Gullfaks C. 10 Viking Energy in stormy waters by the Oseberg field.
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We want to sign off by expressing our gratitude. Our vessel may not be the newest and most modern in the fleet, but we had some fantastic years at sea west of Shetland. Our North Atlantic queen is ready for new adventures – and we’re crossing our fingers there will be many more.
In his very last brief, our client’s Offshore On behalf of the crew on Subsea Viking, Manager observed that although our project us about to end, rather than gearing down, we are gearing up – preparing for new challenges. Indeed, Emil Palmers Deck Officer we shoulder a responsibility for the good safety culture that permeates every nook and cranny of
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NEWS
3 on 3 on board Subsea Viking 1. Your best memory from west of Shetland? 2. The biggest challenge? 3. What will you miss – and definitely not miss? ØYSTEIN VÅGE Captain, Four years west of Shetland
ØYSTEIN LUNDEKVAM Crane Operator, Seven years west of Shetland
ROY KARLSVIK Chief Engineer, Seven years west of Shetland
1. The great cooperation between the crews of Eidesvik and Subsea7
1. When we fooled the lady in the canteen into thinking she was going on a boat trip one summer day. She came in a white summer dress and high-heeled shoes – and was angry as well as disappointed when she realized there wouldn’t be any boat trip. We, on the other hand, had quite a good laugh.
1. The adrenaline rush of my first BA Game in Kirkwall. Nothing like it!
2. To fit in with the quaint rules on the Subsea Viking.
3. I’m going to miss the project crew and the predictability of this contract. I shall also miss the Orkney Islands.
2. Four years ago, when I was promoted to captain of a vessel I’d never seen. That was quite a challenge to have dumped in my lap! 3. Well, we’ve certainly had a demanding client. A few hairs have turned grey as we have been continually challenged to come up with better solutions. I’ll actually miss that, because it’s very satisfying to repeatedly come up with good solutions that everybody can live with. But in future years I’ll manage just fine without the winter storms of the North Atlantic! We’ve had some very tough bouts, at sea and quayside.
3. Pleasant gangway guards in Kirkwall, and some of my colleagues on Subsea7. On the other had, I’m not going to miss the winter flights in a small plane across the North Sea, nor the harsh winters of the North Atlantic.
2. The client’s demand for four generators in the midst of an operation. That led to many hours of dealing more challenges than we needed right then.
Greetings from Viking Neptun and Viking Energy 6
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Eidesvik AS Vestvikvegen 1 N0-5443 Bømlo Norway
We have been pioneers from the very beginning. We found a way where others hesitated. On our 50th anniversary, Eidesvik is a leader in making the shipping industry more environmentally friendly, doing our utmost to help develop advanced, eco-friendly maritime technologies. With pride in our traditions, our skilled employees are creating new opportunities every day. While building on our pioneering history, we are charting new waters!
2012 MV «Viking Lady» started testing battery hybrid solutions
MV «Geo Explorer» First 3D Seismic Ship 1992
MV «Viking Lady» World`s largest Supply Ship
MV «Viking Energy» World`s first LNG Cargo Vessel
1996
2003
MV «Viking Lady» Avant design with LNG and fuelcell
MV «Viking Poseidon» World`s first Multi-Purpose Supply Ship
MV «Viking Avant» New design platform Supply Vessel
1998
2005
2015 MV «Viking Queen» commercialised fuel saving battery hybrid solutions installed MV «Viking Prince» og «Viking Princess» LNG platform Supply Vessels 2012
2009
2015 MV «Viking Neptun» Our first SURF vessel
MV «Oceanic Vega» New class of Seismic MV «Seven Viking» Vessels Receives ”Ship of the Year” award 2010
2013
1990 1995 2000 2005 2010 2015 2008 MV «Viking Queen» LNG Cargo Vessel and Avant-design
2008 MV «Viking Poseidon» Environmental friendly 2016 X-Bow MV «Viking Energy» First vessel with class notation ”Battery powered”
2016 Eidesvik enters the offshore wind market with the MV «Acergy Viking»