how the norwegian service industry was developed
TRANSCRIPT
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www.intsok.com
How the Norwegian Service Industry was developed-Competence and Capacity
Sjur E BratlandRegional Director, INTSOK, Norway
Willy H Olsen
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The presentation
1. What were the instruments used?Policies, legislation and external factors
2. The role of people, technology, research and development
3. Where is Norway today?
Willy H Olsen
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Legislation approved before oil was found
The Petroleum Law is the foundation
1. The petroleum resources shall be managed with a longterm perspective
2. The whole society shall benefit from the resources3. Resources shall be managed to secure revenues to the
country4. Oil and gas shall contribute to welfare, employment,
improved environment and industrial development5. Take care of regional interests
We wanted to develop a oil and gas service industry
Source: The Petroleum Law of 1965 paragraph 1A
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Policies were adapted to national traditionsSharing of technology and creating a local working environment
The government worked deliberately to Norwegianize the oil sector US and French domination in the first decade Labour relations were built on strong trade union influence Worked in favour of domestic firms relative to foreign firms
But did not jeopardize economic efficiency
Ownership no issue Environmental friendly take care of the resources The Ministry monitored the tendering process and bid evaluations Norwegian based firm got early access to all tendering information
Willy H Olsen
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Using Norways competitive advantages
1. Harsh environment - taking careof the environment
2. Deep water3. Technological challenging4. Expensive labor cost
1. Innovative an risk willingness2. Established yards could convert to
oil and gas industry3. Willing to use the Norwegian
continental shelf as a test bench
4. Deep fjords allowed building ofconcrete substructures
Source:
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Cornerstone in developing the Norwegian Oil industryPredictability Risk reducing
Established a competitive and transparent environment Concession rounds every year, based on nomination
from oil companies Ownership not important Today 60 active oil companies many independents A lot of the service industry are owned by non
Norwegian companies External factors worked in the favour of Norway
IOCs were looking for new opportunities after thenationalisation
Quite willing to accept tough terms Transfer of knowledge and experience to
Norwegian firms Stick and the carrot used
Willy H Olsen
BP production millb/d oe
Source: BP
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Taxpaying oil workers in every community
More than 1300 companies
But clustersestablished
Willy H Olsen
R&D
Subsea
Maritime
Drilling
Operators
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Have to follow EU rules and regulations
No preference to Norwegian firms
Norway joined the European Economic Area Had to introduce EU regulations The legislation from 1972 on in-country value
had to be scrapped Legislation is based on competition as the
key principle Predictability, transparency, traceability Prohibited to discriminate on the basis of
nationality and to use standards and
specifications to obstruct competition
Infant industry argumentno longer applicable
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The government stimulated technology partnership
Fiscal incentives and financial support
Universities andR&D centers
T h e
o p e r a
t o r s
Willy H Olsen
T h e o
i l a n d g
a s i n d u s t r y
http://www.cmi.no/http://images.search.yahoo.com/images/view;_ylt=A0PDoX9KhEdPGDcAU3.JzbkF;_ylu=X3oDMTBlMTQ4cGxyBHNlYwNzcgRzbGsDaW1n?back=http://images.search.yahoo.com/search/images?p=seadrill+logo&sado=1&n=30&ei=utf-8&fr2=sg-gac&tab=organic&ri=1&w=302&h=300&imgurl=www.smedvighytte.com/bilder/seadrill_logo.gif&rurl=http://www.smedvighytte.com/&size=6.5+KB&name=Seadrill+medlemssider&p=seadrill+logo&oid=c7f399e69c10669b89691044d349101f&fr2=sg-gac&fr=&tt=Seadrill+medlemssider&b=0&ni=112&no=1&tab=organic&ts=&sigr=10se1r854&sigb=13d7q9mmq&sigi=11d58q8pg&.crumb=UM6eMjJcYABhttp://www.slb.com/http://www.dnv.com/http://images.search.yahoo.com/images/view;_ylt=A0PDoX.KgUdPxFMAzVGJzbkF;_ylu=X3oDMTBlMTQ4cGxyBHNlYwNzcgRzbGsDaW1n?back=http://images.search.yahoo.com/search/images?p=ENI&fr=slv8-logi&fr2=piv-web&tab=organic&ri=4&w=1181&h=1175&imgurl=2.bp.blogspot.com/-7NtntaAbWSk/TiFYq0dnVyI/AAAAAAAADzY/zN12stN5v2c/s1600/Eni06logo.jpeg&rurl=http://smallworldnetwork.blogspot.com/2011/07/gheddafi-chiude-il-rubinetto-alleni-e.html&size=295.7+KB&name=...+Gheddafi+chiude+il+rubinetto+all& -
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Kristin Tyrihans Tordis IOR
Highpressure
HightemperatureAdvanced
wells
Recordlong
pipelineheating
Subsea rawseawaterinjection
Subseaseparationboosting
andinjectionsystem
Troll Oil
Tappinga thin oil
layerDrilling
systemsAdvancedsoftware
The tax system made fields into laboratories
Testing and verifying new solutions
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2 0 2 0
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MBOE/D
The Ekofisk field, Norways first oilfield, began production in 1971
Was hoping for 20% recovery ConocoPhillips is now aiming for 50% Field life extended to 2050 Norways average recovery factor is
now close to 50% The government aim is 55% Huge R&D program to succeed 1%-point increase in recovery
represents $35 billion in additionalrevenues to Norway
Revitalizing and extendingthe life of the Ekofisk field
The initial plan
Willy H Olsen
Government top priority - EOR
Squeeze out the last barrel adds value
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Statoil is the dominatingplayer - operating 80% of
new projectsThe CEO will always beunder pressure to add in
country value
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INTSOK was a new government initiative
Stimulating international growth
Willy H Olsen
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Total Oil & Gas Expenditure for 2012-2015
0
20
40
60
80
100
120
140
160
180
Source: INTSOK Annual Market Report - Rystad Energy (2011)
B i l
l i o n U S D
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Norwegian Oil & Gas World -class Clusters
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Catalogue presenting Norways world class capabilities
Minimizing discharges and emissions
Capabilities in the Norwegianoil and gas industry
for reducing energyconsumption and minimizingdischarges and emissions
Solutions for cleaner production
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Catalogue presenting industrys IOR capabilities
Delivering increased oil recovery
Capabilities in theNorwegian oil and gasindustry for solutions thatcan increase oil recovery
Solutions for increased recovery
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Rogaland Training & Education Centre - Local skilled workers are the fundamentfor local content
Achilles ID # 26088
Certified provider tothe Oil & Gas sector inNorway and Denmark
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Colleges
Regional development
Companies
RKK
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Samples of content skills training for the Oil &Gas sector
Subject areas:
Rules & regulationsHealth, environment and safetyEconomics and managementPetroleum technologyDrilling and well technology
AutomationElectro and electronicsHeating, ventilation and sanitationValve technologyMechanical processesPressure testing
Training and continuing education for the offshore and mechanical industry:
RKKOil & Gas
Achilles ID # 26088
Certified provider tothe Oil & Gas sector inNorway and Denmark
Hydraulics and pneumaticsScaffolding and riggingSurface treatmentWelding and plating
Flanges and gasketsIsolation and casingChemistry and processesMaterials administrationSub sea technologyInstrumentationSafety and emergency preparednessNavigation
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20.03.2014 Kvaerner 201121
Kvaerner Caspian -Vision
Kvaerner Caspian Group is jointly owned by KGNT andKvaerner AS
This is a true Kazakh company - Shareholding and Boardrepresentation are equal
Initial activities are targeted towards fabrication andengineering
Kvaerner Caspian aims to be the first full fledged EPCoffshore contractor in the Caspian Region
Vision
Create a top class Kazakhstani contracting company throughtechnology transfer and training of employees.
Execution of Oil & Gas projects with the maximum possibleworkload inside Kazakhstan
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20.03.2014 Kvaerner 201122
Kvaerner Caspian -Capabilities Kvaerner Caspians business model is to deliver Offshore EPC
Contracts. This is achieved through the following capabilities: Fabrication Kvaerner Caspian currently building a new offshore
module fabrication yard in Aktau. Engineering Kvaerner Caspian have engineering offices in Atyrau
and Aktau. Training Kvaerner Caspian is the largest shareholder in the Aktau
Training Centre (ATC) - be closely associated with the Aktaufabrication yard
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Thank you for your attention
Looking forward to the B2B meetings