03 WorldHorizon 2015 Quarterly Magazine of the BW Group MCI (P) 009/11/2014

Building on Experience Editorial

Publisher Haneya Basheer For further information, BW Group Hugo Haeselich please contact: Jitendra Sabharwal Responsible Editor Joshua BW Maritime Pte Ltd Nick Fell Joyce Lim 10 Pasir Panjang Road #18-01 Krystle Sun Mapletree Business City Managing Editor Lars Pedersen 117438 Lisa Lim Leif Einar Olsen + 65 6337 2133 Leonard Harbottle [email protected] Editorial Team Lim Wei Hong Arathi Menon Maja Kristensen BW Gas AS Kate Langstrom Martin Ackermann Professor Kohts vei 5, 1366 Lysaker Roy Lee Michael Skyum P.O. Box 443 Miriam V. Basco 1327 Lysaker, Contributions From Mukesh Sharan + 47 6721 1600 Andrew Hoare Nalini Torres [email protected] Anders Bohm Ole Erik Bjorge Ashok Krishnan Petter Maelandsmo BW Offshore Norway AS Bill Hatch Sverre Henry Johannessen Drammensveien 149 Billy Chiu Venu Viswanadha P.O. Box 33 Skøyen Biju Jayarajan Veronica Lee 0212 , Norway Brian Ang Vivian Yuan + 47 2313 0000 Cathinka Fornebo Mellem Zhihui Seah [email protected] Christina Chu Corinne Hobson Design & Production BW LPG Pte Ltd Erle Kristen Wagle Lancer Design Pte Ltd 10 Pasir Panjang Road #17-02 Mapletree Business City Singapore 117438 + 65 6705 5588 [email protected]

Green Marine Capital 10 Pasir Panjang Road, #17-02 Singapore 117438 +65 6705 5588 WorldHorizon

Contents 03/2015

04 Chairman’s message 15 Catching Up with BW Catcher BW Catcher is on course for delivery in 2017

16 always Trying to Do Better BW Aries aims for the stars in energy management 20 Changing Directions 18 BW Offshore adopts a more strategic approach to Supply Chain In the Spotlight 18 Good to Great 22 Gearing up for the Next Phase BW LPG’s new chief executive Martin With a huge milestone achieved, Peregrino Ackermann talks about building on the 08 FPSO is getting ready for the next phase success of the company and driving the business forward Global BW 08 no ‘gas’ work when it comes to safety 23 BW Group Fleet

09 expanding Horizon BW LPG at the 28th annual World LPG Forum 24 AROUND THE WORLD in Singapore

10 Signed, Sealed, Delivered 29 BW cryptic crossword BW Pavilion LNG has acquired USD360 million in financing 06 12 Developing Our Talent Feature 30 Special Thanks To... training future leaders through the 06 Built on Experience Management Associate programme nearly two centuries of combined crew experience onboard BW Singapore 14 To The Rescue Very Large Gas Carrier BW Carina rescues refugees in distress 4 World Horizon Issue 03/2015

Chairman’s Message World Horizon Issue 03/2015 5

t has been a busy quarter since the that can secure us against the storm Some might argue that trust has its limits last World Horizon. We have secured outside. Culture – “our way of doing things” in an operational environment with risks business for our FSRU BW Singapore, – determines whether an organisation involved. Safety is clearly an area where Iwhich was prepared in record time and makes good decisions, whether it is a checks and redundancies are critical, and is already on station in Egypt. We closed pleasant company for other parties to deal blind trust – not considering an individual’s the financing for our BW Pavilion LNG joint with, and whether it is an enjoyable place experience with a task or the risks involved venture with Pavilion Energy. BW LPG is to work in. in a particular situation – is not what we providing the floating storage solution for are advocating. But again, openness and the first seaborne LPG-to-power project in One aspect that is worth reflecting on is trust go hand in hand. Being open about the Virgin Islands. And we continue to take how a company responds to challenges. the limits of one’s experience or capability delivery of the large series of 22 product In the wake of a corporate scandal in the and speaking openly about what is at stake, tankers from SPP, which are arriving to car industry, which follows on the heels should allow trust to be a guiding principle healthy market conditions. Peregrino, of two other major cover-ups in the same without allowing it to become blind. which BW Offshore is operating for Statoil, industry, it is timely to remember that has reached a milestone with 100 million a philosophy of “no cheating, no cover- BW is fortunate to be doing well in its core barrels of oil production. ups” is vital to any company which values businesses, and this success is founded its reputation. A phrase which I have on a strong corporate culture. Whatever In contrast, the global outlook has been commonly heard in Scandinavia (which I the numbers look like in the present, it is shaky in recent months. The Chinese believe originates in Italy) is to “put the culture that will determine our success in economy is slowing. Oil producing fish on the table”. Or as the English saying the future. Openness about problems, and countries are building massive deficits. goes: “don’t sweep it under the carpet”. If the trust that results from that, are key Emerging markets are facing a loss of there is something difficult to be discussed elements in how we will deliver on our confidence and capital. Fighting continues – a problem, a disagreement, however value “acting for the future”. in the Middle East, and Europe is inundated awkward – it is better to deal with it with refugees. Some major companies of openly rather than allowing it to rot under systemic size and importance are under the table. siege, albeit for different reasons. Without openness, there is no trust. And Our own successes in this environment without trust, the team ceases to function are in large part thanks to BW teams efficiently – everyone starts looking over Sincerely, working hard around the world. Beyond their shoulder, small miscommunications Andreas Sohmen-Pao hard work, continued success will depend lead to big misunderstandings, complexity Chairman on maintaining a healthy corporate culture and bureaucracy increases. 6 Feature World Horizon Issue 03/2015 Built on Experience Nearly two centuries of combined crew experience onboard BW Singapore

W Singapore is BW’s latest addition Master Petter Maelandsmo, the Captain is like rice and potatoes – we can be used to the company’s Liquefied Natural surrounded by team members who have in many dishes”. This “can-do” spirit and Gas (LNG) fleet. Built at Samsung also seen many years with BW. Electrical the willingness to go beyond the call of BHeavy Industries, BW Singapore Officer EO( ) Sverre Henry Johannessen duty are captured in one of BW’s four has low environmental footprint, high fuel recently celebrated 30 years with BW, Chief company values, Creating Energy Through efficiency, a storage capacity in excess of Engineer Mokkelbost Steinar has been Collaboration. 170,000 cbm, and a peak regasification with BW for 24 years, and Chief Officer capacity of 750 mmscfd. She will provide Lie Mathias Edvin has served for 17 years. BW also offers opportunities for career LNG regasification services in the Port of Although not sailing onboard, other long- progression – something which Captain Ain Sokhna, Egypt. serving colleagues also worked on getting Maelandsmo exemplifies. He joined then- BW Singapore ready for water, such as Site Bergesen as a deck boy in 1982, rose Providing stable, safe and efficient Manager Jan Egil Torvik (38 years) and Chief through the ranks over the years and was regasification service Engineer Per Aslak Ringstad (42 years). made Captain in 2001. During his time Apart from fulfilling contractual obligations, with the company, he has sailed on crude BW Singapore provide Egypt with a stable, Like rice and potatoes oil tankers, Liquefied PetroleumG as (LPG) safe and efficient regasification service. Crew retention numbers at BW are higher and LNG carriers, bulk carriers and OBO She will be permanently moored alongside than the industry average. When asked (oil, bulk and ore) carriers. a jetty in the Port of Ain Sokhna, and will about the long years of service, the crew regasify up to 600 mmscfd of gas per which World Horizon spoke with said that BW is a leading international gas shipping day for five years. She will double Egypt’s they appreciated the respect they received company with more than 75 years of capacity to import and regasify LNG. The as professionals in their field. BW treats maritime energy transportation history, 40 additional gas will be used mainly for all employees fairly and the working years of operational experience in LNG and power generation, and also help satisfy environment is pleasant. EO Johannessen a current fleet of 21 LNG carriers including the growing demand of directly connected commented that it is the team newbuildings. While this is something to residential and industrial consumers. camaraderie, and that no two days are be proud of, we are prouder still of our the same, which keeps him going. Captain crew, where onboard a single vessel, we Two centuries of experience onboard Maelandsmo agreed and commented that have nearly two centuries of in-house Just as impressive as the vessel is the everyone pitches in regardless of rank experience in managing one of the world’s crew onboard. Helmed by long-serving when help is needed, “onboard, we are largest fleet of gas carriers. World Horizon Issue 03/2015 Feature 7

Low environmental footprint, high fuel efficiency:

170,000 cbm storage capacity

750 mmscfd regasification capacity 8 Global BW World Horizon Issue 03/2015

BW and Pavilion Energy hosted a group of media professionals onboard LNG carrier BW Pavilion Vanda. This article appeared in a Singapore daily, The New Paper, on 21 September 2015. BW thanks Singapore Press Holdings for permission to reproduce the article. World Horizon Issue 03/2015 Global BW 9 Expanding Horizons BW LPG at the 28th annual World LPG Forum in Singapore

he 28th annual World LPG Forum and shipping hub in Asia, the importance against the backdrop of various global was held in Singapore from 28 Singapore now places on the gas industry developments such as energy price September to 2 October. The World and the rising portion of economic fluctuations, developments within the TLPG forum is organised annually growth that has been coming from Asia. Chinese economy and geopolitical by the World LPG Association (WLPGA), BW LPG was one of the main sponsors considerations. At a session titled, the authoritative voice of the global LPG for this forum which saw significant “Deciphering the Upstream”, industry. Established in 1987, WLPGA attendance by participants across the Mr Ackermann, together with a panel aims to add value by driving demand for entire LPG value chain. The forum provided of industry practitioners, presented LPG and helping both public and private an excellent platform for developing and discussed the impact of the recent companies to partner with international relationships within the industry and for growth in LPG on shipping, trade routes, organisations and implement LPG projects updating knowledge on latest trends and LPG exports and LPG prices for players on a local and global scale. developments within the LPG industry. upstream and in other parts of the value chain. This is the first time the World LPG Forum The forum’s theme, “Expanding Horizons” was held in Singapore, which is reflective was especially relevant given emerging The forum also featured insights from the of Singapore’s important role as a business opportunities within the LPG market retail and petrochemical parts of the value chain which were of significant interest to many who attended. Mr Ackermann spoke about the quality of the event, Mr Ackermann together with a panel of industry commenting, “Ultimately the World LPG Forum provided an excellent platform for practitioners presented and discussed the impact robust discussions and delivered significant of the recent growth in LPG on shipping, trade insights on latest trends and changes in the global LPG supply chain, making it a routes, LPG exports and LPG prices for players valuable event for participants across the upstream and in other parts of the value chain. entire value chain.” Feature

10 Global BW World Horizon Issue 03/2015

W Pavilion LNG recently secured two financings worth USD360 million in total. This deal is a highly Bcompetitive funding solution that was attained at attractive pricing with Signed, favourable terms and conditions. This facility will be used to fund the purchase of the newly-delivered BW Pavilion Leeara and refinance the shareholders loan used Sealed, to purchase BW Pavilion Vanda. A total of 22 banks were invited to submit proposals for the initial phase and the Delivered response was overwhelming. The total BW Pavilion LNG has acquired USD360 million in financing

USD360mTotal of two financings secured by BW Pavilion LNG Feature

World Horizon Issue 03/2015 Global BW 11

commitments amounted to an over- secured a strong funding platform from a at the forefront of such initiatives; and subscription of more than five times. group of supportive banks. This deal also with a 20-year charter in place to serve Six banks were eventually selected for demonstrated that such funding for LNG the region’s LNG needs, the joint venture is this deal, with Sumitomo Mitsui Banking vessels is feasible in today’s relatively soft poised to be involved for the long term. Corporation (SMBC) acting as the facility LNG market with the right structure and agent. The other lenders include DBS Bank, stakeholders involved in the project. It also BW Pavilion LNG is a joint venture formed Overseas-Chinese Banking Corporation highlighted the trust shown by the banks between BW and Pavilion in May 2015. (OCBC), Clifford Capital, Societe Generale towards both BW and Pavilion Energy and The main business of this joint venture is and Credit Industriel et Commercial. the strength of both companies’ brands. to invest in Liquefied Natural Gas (LNG) vessels to meet the growing demand in This was the second financing deal that This deal helps to crystallise Singapore’s LNG transportation in the region. was closed since the formation of the energy diversification strategy and the partnership with Pavilion Energy. By country’s push to become an LNG hub in signing this deal, BW Pavilion LNG has the region. It also places BW Pavilion LNG

nd 22Banks were invited to submit 2Financing deal that was closed since the proposals for the initial phase formation of the partnership with Pavilion Energy 12 Global BW World Horizon Issue 03/2015 Developing Our Talent Training future leaders through the Management Associate programme

aving a team of capable leaders Norges Rederiforbundet (Norwegian and learn as a team. Brian Ang, a second- is necessary for the smooth Shipowner’s Association) sees our year associate, notes how the importance running of a successful company. participation in what is widely regarded of working together within the department HBut not all leaders are born as one of the best MA programmes in and with others is essential to achieving with the gift to lead; many are made Norway. Under this programme, associates objectives. Team work is a necessary through experience and knowledge. But... are employed by the company and given component for any business, and a leader however... having the opportunity to exposure to the daily operations of the that understands how to make people work acquire such attributes is not always easy. business. The programme also features an together to accomplish a common goal is a BW believes in training the next generation academic component where associates hallmark of success. of talent and empowering them with attend modules to build their knowledge the skills and knowledge to lead. One of of the shipping industry. Vivian Yuan, a first-year associate says, BW’s core values is acting for the future “The most enriching aspect of the MA and the company’s commitment to the Making improvements programme so far has been the exposure future can be seen through the company’s The MA programme also provides to different departments and functional Management Associate (MA) Programme. opportunities for the associates to suggest units within BW. I enjoy picking up new and implement improvements. Second- skill sets with each rotation, as well as The Management Associate programme year MA Joshua Lin modified a Time Charter meeting new colleagues who are very In the Singapore office, BW runs an MA Equivalent (TCE) calculator for benchmarking friendly and approachable.” programme that is designed to attract the Chartering team’s performance. The TCE fresh graduates who are interested in calculator is often used as a tool to calculate Speaking from experience developing a career in the maritime the average daily revenue performance of a Senior Vice President for Quality, Audit industry. Through a rigorous two-year vessel. This modified TCE calculator proved and Compliance Billy Chiu joined the development period, these individuals are immensely useful for the department company, then known as World-Wide equipped with the necessary skills and with the customised values tailored to Shipping, as a management trainee in knowledge to succeed as a leader within the department’s operational needs. This 1985. He was exposed to the deep end the organisation. Each MA is also assigned improvement was a collaborative effort when he was posted to the Japan office a mentor who acts as their programme between his mentor and himself. after just two months in the company. sponsor and supervisor. Despite the steep learning curve, he had Creating energy through collaboration a mentor who was patient and willing to At BW’s Oslo office, a partnership with BW provides a safe environment to grow show him the ropes. The comparatively World Horizon Issue 03/2015 Global BW 13

“Being humble enough to allow your seniors to teach you and to learn from mistakes is important.” – Billy Chiu

smaller team in the Japan office afforded Billy the chance to be exposed to different aspects of the business. It also gave him the opportunity to take on projects and responsibilities that were normally beyond his scope, allowing him to gain a broader appreciation of the interconnectedness of each department. Looking back, he said, “there are two sides to the coin, I was given the chance to do things that were normally for more senior positions but at the same time, I had to do small tasks such as photocopying too. But overall, I learnt a lot from all these experiences.”

As advice to the new management associates, he says that “being humble enough to allow your seniors to teach you and to learn from mistakes is important. Being able to commit time and effort to further your knowledge is necessary From L-R: Management Associates Joshua Lin, Brian Ang and Vivian Yuan as well.” 14 Global BW World Horizon Issue 03/2015

To The Rescue Very Large Gas Carrier BW Carina rescues refugees in distress

ith a fleet of over 150 ships, Maritime Rescue Coordination Centre and Lars Pedersen, Managing Director of BW BW’s vessels cover a vast proceeded to investigate further. Fleet Management, thanked the crew for expanse of the world’s oceans, the professional and efficient handling Wdelivering energy to wherever A total of 14 people were spotted onboard of the matter. He said, “It makes us all it is needed. On this occasion, Very Large the small raft and orders were immediately very proud when we are able to make a Gas Carrier (VLGC) BW Carina was to make issued by Captain Jayarajan to bring them difference.” Captain Jayarajan echoed that a short voyage from Grand Cayman to onboard BW Carina. Fortunately, none of the sentiment, “I am glad that we could be of Houston when she was called upon to rescued required serious medical attention. assistance to the refugees who were adrift assist in a rescue. The crew later learn that the 14 people at sea.” onboard the raft were Cuban refugees who The Rescue had been out at sea for the past 19 days. Longstanding Tradition During the journey from the Grand It is a longstanding maritime tradition Cayman to Houston, the Officer on watch Swift Response to render assistance to others in distress spotted a small raft. White flags could be The entire process lasted two hours, at sea. This tradition has been codified seen being waved in the distance by two from the first sighting of the raft to the into law through the Safety of Life at Sea individuals. Captain Biju Jayarajan, Master successful rescue of the 14 onboard. The (SOLAS) Convention, under which the onboard BW Carina, was immediately swift and timely response of BW Carina Master of a ship is legally obligated to informed of the situation and the crew ensured the safety of the refugees. The respond to any distress situation regardless was called into action. refugees were transported off BW Carina of nationality, status or circumstance in the onto the United States Coast guard vessel world. While BW Carina’s response to the BW Carina made contact with BW Fleet USCGC Kathleen Moore later that evening. situation fulfilled her legal obligation, it Management to keep the office appraised The crew of BW Carina were presented was borne out of BW’s belief in the sanctity of the situation. Following international with a badge of commendation for their of life and commitment to ensure safety protocol, BW Carina alerted the nearest role in rescuing the refugees. for everyone. World Horizon Issue 03/2015 Global BW 15

Catching Up with BW Catcher BW Catcher is on course for delivery in 2017

W Catcher Floating Production, the delivery of the Middle Mega Block Ensuring that key personnel were Storage and Offloading (FPSO) is (MMB) which is expected in November. properly informed and educated on the currently on track for its delivery The MMB is being constructed in Korea requirements of the project was necessary. Bin 2017. Set to be deployed in the and will be shipped to Japan where it Experienced individuals with extensive operated catcher field of the will be assembled by IHI Shipyard. knowledge on the UK continental shelf and ’s (UK) North Sea, the FPSO its regulatory requirements were deployed vessel will be placed on a seven-year charter New Challenges to the shipyards to ensure the smooth with a contract value of USD2.3 billion. Working in the Catcher field presented progress of the project at hand. new challenges to the project team with “Two significant milestones have been stringent regulatory requirements and unique Going forward achieved with the cutting of the first geographical conditions necessitating a unique Project Manager Venu thanked the steel in the first quarter of 2015 and the hull design for the FPSO. With harsh weather team for their hard work, “All the team Keel-Laying recently in August,” says conditions and waves three to four metres members have been putting in their best Project Manager Venu Viswanadha. The high, special consideration was given to efforts to ensure the project remains FPSO is half-way to completion and on designing a hull that satisfied safety concerns. on course for delivery despite all the course for its 2017 delivery schedule. Strong winds and currents are also present in challenges.” The next major milestone would be the Catcher field that required attention. 16 Global BW World Horizon Issue 03/2015

Always Trying to do Better BW Aries aims for the stars in energy management World Horizon Issue 03/2015 Global BW 17

W Aries, a recently delivered Very operating on lower revolutions per effort and everyone onboard was involved. Large Gas Carrier, is certainly living minute (RPM). The compressor efficiency Day to day operations required coordination, up to its name. Individuals with was tested at different RPM levels and and data had to be collected and analysed. Bthis zodiac sign are often described we found that at 525-550 RPM, the A major challenge was to sustain the spirit as “go-getters” and leaders, and with less compressors were delivering better fuel and motivation of the team throughout the than a year on the water, crew onboard efficiency. We validated our observations initiative. Jitendra comments, “Throughout are already hard at work trying to raise fuel with further studies and analyses. With the study, there were times when our tests efficiency levels to reduce emissions to air this finding, we have managed to reduce failed or produced no results, but the team and at the same time save cost. the fuel consumption of LPG compressors did not give up. I try to keep the energy of the by about 33%, which will help us save teams on board high by being involved with Leading such energy management quite a bit of cost”. them – I make sure we celebrate even small initiatives onboard is Chief Engineer victories, and appreciate all effort put in”. Jitendra Kumar Sabharwal. He says, Says Erle Wagle, Environmental “It is always exciting to deliver higher Performance Manager, “BW Aries is a Finding new challenges efficiency and run the vessel in the most new and efficient vessel, but onboard Chief Engineer Jitendra is setting his sights economical way. Every ship and voyage is crew have done additional work further with this success. His future energy a new journey of findings and learnings. in cooperation with Technical and management projects will be related to Most of the time, it is just minute key Electrical Superintendents to reduce fuel the performance of auxiliary boiler, and observations, which if taken care of, can consumption of generators which will give cylinder oil optimisation. He reflects “There lead to surprising results.” us an annual saving of over USD100,000 is always immense scope to explore. We and reduce the emissions from the vessels need to think and approach our daily

Elaborating on a particular initiative, by about 1,500 tonnes of CO2.” operations as if we are the owner, and Jitendra adds, “As we had insufficient start taking initiatives from our end to spare load to run only one generator Working as a team improve current operations, and have an efficiently, the LPG compressors were Working to increase efficiency is a team eye for detail and passion to do better”. 18 In The Spotlight World Horizon Issue 03/2015 Good to Great BW LPG’s new chief executive Martin Ackermann talks about building on the success of the company and driving the business forward

With two decades of experience in the commercial LPG business, Martin has led a dynamic career in gas shipping. Up until this summer, Martin was the CEO of Evergas for the past seven years, where he led the rejuvenation of the former Eitzen Gas with a one billion USD investment programme, including pioneering the ethane transportation market as well as introducing dual fuel propulsion to the fleet. With Martin having embarked on his new role at BW LPG, World Horizon speaks to him to find out what he has in store for BW LPG. World Horizon Issue 03/2015 In The Spotlight 19

Arathi Menon [AM] for World Horizon factor we have to embrace and we do AM: “With your busy schedule, how do AM: “Why did you join BW LPG?” this by having an agile business platform you spend the little spare time that that is supported by efficient systems you get?” Martin Ackermann [MA]: “I have always and lean processes. MA: “On the personal front, my two boys admired BW Group for its ability to drive Emil, aged 11 and Niels, aged 9 are both market leadership as well as being an BW LPG has enjoyed extraordinary success a great source of joy and they inspire me industry role model. I was very inspired over the past 18 months and has become to be present in every moment of my life. about this opportunity and being able to an excellent industry platform. Our focus Time is always a scarce resource, making it work with the world leader within LPG is long term and we will work to ensure important and ultimately more rewarding transportation. Having been here now that the company remains well poised for for all of us to be present in the moment, for a short period of time I am delighted capturing future growth opportunities and be it at work with our colleagues or at that we have such a strong team and this remains competitive in scale and across home with our families.” gives me a lot of confidence for the future. our business. Shipping markets are cyclical by nature, thus it is vital to ensure that We all spend an enormous amount of our our focus remains on being best in class time in the workspace, thus what we do by delivering competitive and sustainable has to matter. The BW values resonate very solutions to our clients.” well with my own values and how I see myself as a person. This combined with AM: “What inspires you as a leader?” the opportunity to work for BW LPG made MA: “A good leader is someone who is in the decision to join BW easy.” close contact with his or her team. Within this team everyone is working together, AM: “What are some of your key ideas aligned on goals, and growing together for running a successful organisation?” within their respective responsibilities MA: “The three key pillars that define to deliver results consistently. There is success in an organisation are its people, already a strong team behind BW LPG and a customer centred mindset and efficient I hope my direct, open and empowering processes. People are the backbone of leadership style will help to further any organisation. In BW LPG, we have a strengthen within the organisation. pool of dedicated and talented individuals. The company is already a very well-run There are so many great leaders in this I hope my company and I am looking forward to world who are a source of inspiration. working closely with our team, driving the Mandela’s courage and perseverance to direct, open and business forward. fight for justice without ever losing hope and focus is inspiring. Another leadership empowering The customer is still king. Understanding principle that has stayed with me over the long term needs and demands of our the years is, “When you talk, you are only customers will remain important for us to repeating what you know. When you listen, leadership style move onto the next level and drive BW you may learn something new.” Having LPG’s business forward. a collaborative leadership style, asking will help to propel incisive questions, understanding socio- Operational efficiency is key to ensuring cultural contexts and motivations of people the business a high service level as well as cost are all crucial for good leadership.” efficient operations. Change is a constant forward. 20 Global BW World Horizon Issue 03/2015

Changing Directions BW Offshore adopts a more strategic approach to Supply Chain World Horizon Issue 03/2015 Global BW 21

“First and foremost it is a question about communication and alignment. Many of our internal customers have never been aware of the value that a properly executed Supply Chain function can bring to the business. There is also a need to move towards a greater focus on value creation and not just cost.” – Michael Skyum

rocurement is about spending just a cost cutting exercise. Senior Vice from all departments. Incorporating a money and creating value for President Michael Skyum, Head of Supply procurement phase into Fleet and Project the business that it supports. Chain, says, “First and foremost it is planning minimises last minute requests PKnowing how to spend the money a question about communication and and allows the procurement team optimally and create value in the process alignment. Many of our internal customers increased flexibility in negotiating with is important. For this, you need a clearly have never been aware of the value suppliers. This can translate into better defined strategy. At BW Offshore, the that a properly executed Supply Chain value and cost efficiency. A mindset shift Supply Chain Department (SC) is going function can bring to the business. There with regards to procurement together with through a transformation to improve its is also a need to move towards a greater effective communication company-wide practices to achieve better cost savings, focus on value creation and not just cost. is necessary to ensure that everyone is on efficiencies and generate more value for Creating value means not always taking the same page. the company. the cheapest option but ensuring that the choice is the best one that satisfies For the procurement team, being From reactive to proactive the requestor’s needs and requirements equipped with the necessary sourcing Supply Chain practices have historically without being over-engineered.” skills and knowledge to utilise the various been very reactive in nature with procurement systems is critical for a individual orders placed when requests For example, value can be achieved when smooth transition. Proper training and are made. The SC team is in the process shortened lead time for deliveries are courses are planned to ensure that all SC of shifting towards a much more proactive secured or even when accepting higher personnel have the required knowledge to approach in handling supply chain costs to acquire more durable materials do their part in this transition. matters, where the company adopts a that can offer better performance and long term mindset when thinking about thereby Life Cycle Cost. Providing an The bigger picture their procurement requirements. This analogy, Michael says that, “Instead of The successful transition towards a strategic involves working much closer with internal paying a dollar for a pen that lasts three focus on procurement can have benefits stakeholders and vendors to understand months, we may pay three dollars for a outside of BW Offshore. The initiatives and life cycle cost and form long term relations pen that last 10 years.” systems are being discussed Group-wide that offers benefits for all parties. to look for synergies and achieve better A collective journey procurement efficiencies. BW is always trying An eye on value To implement this proactive approach to do better and this timely strategic review This shift in strategy is much more than successfully, a collective effort is required readies our business for the years ahead. 22 Global BW World Horizon Issue 03/2015

Gearing up for the Next Phase With a huge milestone achieved, Peregrino FPSO is getting ready for the next phase

he BW Offshore operated Peregrino installation.” The success of project was to proper work procedures. As the Floating Production Storage a result of strong cooperation between installation required hot work, strict control and Offloading (FPSO) vessel Statoil and BW Offshore teams. of the environment was also necessary Thas successfully completed the to avoid incidents. This was managed installation of two new crude oil pumps. This modification project was an important through pressurised habitats to control These new pumps will feature an component for the preparation for the atmosphere in the work area. Even increased output of 60,000 barrels per day Peregrino Phase II. This second phase will under such controlled environments, which caters for future increase in demand expect to see an increase of approximately proper safety procedures for equipment from the Peregrino field. In addition, the 250 million barrels in the field. The pump installation had to be observed. new pumps are expected to have lower installation was considered a production gas emission into the atmosphere. bottleneck and the successful installation Passed the 100 million mark meant that the FPSO was on course for this On 2 August, 2015 the Peregrino This project was assigned to the second phase. operations in the Campos Basin crossed Modification Projects team by Statoil. the 100 million barrel mark. Brazilian Benito Ciriza, Vice President for Brazil Safety First National Agency of Petroleum, Natural Modification Projects said, “The entire Installing the pump in a challenging Gas and Biofuels reported earlier this year project took about one year to complete, environment meant that all involved had that Peregrino is Brazil’s eighth largest from designing the equipment specification to have an even greater awareness of field and has the second heaviest oil to engineering, fabrication and safe work practices and strict adherence production rate. World Horizon Issue 03/2015 BW Group Fleet 23

BW Group Fleet: 156 vessels As of 24 July 2015

Very Large Gas Carriers Large Gas Carriers LNG Carriers

No. of vessels: 35 No. of vessels: 5 No. of vessels: 15 Year of construction: 1990-2015 Year of construction: 1991-2003 Year of construction: 1984-2015 Average age: 7.9 Average age: 18.2 Average age: 7.4 Cargo carrying capacity: 78,000-84,000 CBM Cargo carrying capacity: 58,050 CBM Cargo carrying capacity: 125,200-162,500 CBM Areas of operation: Worldwide Areas of operation: Worldwide Areas of operation: Worldwide

Very Large Crude Carriers Long Range 1 Product Medium Range Product Tankers (LR1) Tankers (MR) No. of vessels: 10 No. of vessels: 17 No. of vessels: 13 Year of construction: 2000-2012 Year of construction: 2004-2010 Year of construction: 2013-2015 Average age: 10.4 Average age: 7.8 Average age: 0.7 Cargo carrying capacity: 298,600-320,000 DWT Cargo carrying capacity: 72,800-76,600 DWT Cargo carrying capacity: 49,999 DWT Areas of operation: Worldwide Areas of operation: Worldwide Areas of operation: Worldwide

Offshore Fleet Chemical Tankers Newbuildings

No. of vessels: 17 No. of vessels: 4 Very Large Gas Carriers: 8 Year of construction: 2002-2012 Year of construction: 1997-2010 Floating Storage & Regasification Unit:1 Areas of operation: North and South Average age: 11.8 Liquified Natural Gas Carriers:5 America, Europe, Asia Pacific, Africa Cargo carrying capacity: 19,400-22,000 CBM MR Tankers: 9 Areas of operation: Worldwide Chemical Tankers: 11 LR1 Tankers: 6 Total: 40 24 Around the World World Horizon Issue 03/2015 Around the World

1. Meet the President BW Group Chairman Andreas Sohmen-Pao met Egyptian President H.E. Abdel Fattah al-Sisi at a Leaders Luncheon during the President’s state visit to Singapore in August.

1 World Horizon Issue 03/2015 Around the World 25

2. 4. BW will be at Gastech 2015 Hollywood material BW will be showcasing over Captain Leif Einar Olsen and 80 years of maritime energy Captain Petter Maelandsmo transportation history and 40 were stars for a day when a years of operational experience video crew boarded BW Pavilion in LNG at this year’s Gastech in Vanda and BW Singapore to Singapore. Find us at stand B110 film footage for a corporate LNG at the Singapore Expo, from video. 27-30 October.

3. Ahoy there little Captain! Ole Theodore Teien, son of Captain Jan Ivar Teien, was onboard FSRU BW Singapore when the vessel was at Keppel Shipyard in Singapore. Striking a fine figure in BW’s boiler suit, the world is the little Captain’s oyster.

2 4

Captain Leif Einar Olsen 3

Captain Petter Maelandsmo 26 World Horizon Issue 03/2015

5. 6. 7. Godmothers to constellations Fifty Wings for 50 years A piece of cake In a double shipnaming BW Group in August donated a BW Fleet Management ceremony, President of BW public sculpture commissioned colleagues based in Singapore Shipping Philippines Office by American artist James Surls celebrated the delivery of Rosalinda Cruz and BW LPG in honour of Singapore’s 50th Product Tankers BW Kestrel and HR Business Partner Sonia anniversary. The three metre BW Merlin in September with Vaswani, as godmothers, named high bronze and stainless steel some cakes in the office. Very Large Gas Carrier (VLGC) outdoor sculpture Fifty Wings newbuilds Hull number 2723 draws its artistic inspiration and 2724 BW Libra and BW from the Dipterocarp seed. Orion respectively at Hyundai Dipterocarps are the tallest trees Heavy Industries, Korea. in the rainforest, and can be found in the Singapore Botanic Gardens.

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6 7 World Horizon Issue 03/2015 27

8. 9. 10. Crossing the Ts and Work hard, play hard Safe recovery dotting the Is The BW Shipping team in On 25 September, condensate is on the next phases to prepare The Finance team in Singapore Singapore organised a team offloading from Cidade de São the FPSO for disconnection, organised a signing event for BW building session in July, where Mateus (CSM) to the shuttle repair and return to operation. Pacific USD676 million facility colleagues tested each other’s IQ tanker Sao Luiz was completed The teams continue to maintain and USD266 million facility in with general knowledge quizzes safely. The operation has been the strong HSEQ focus. The June which involved 12 banks. and 3D puzzles. completed safely and in strict management takes this BW thanks our bank partners for adherence to detailed procedures opportunity to thank everyone their confidence in the company. required for such a challenging for their professionalism, operation. This marks a major commitment and hard work in milestone for the CSM Recovery reaching this milestone. Project. Going forward, the focus

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9 28 Around the World World Horizon Issue 03/2015

11. 13. Big trophy, bigger smiles 25 years of commitment Triumphant smiles from the BW thanks Captain Charles Leite winning team at a bowling and Chief Engineer Tor Arne competition held in conjunction Helgesen for 25 good years with an Officer conference held with the company. Presenting in Oslo from 23-25 September. gold watches as a token of this From left to right: Chief Engineers significant milestone is Vice Ole Raknes, Ragnar Ueland and President and Head of Fleets Thomas Pryde, and Captain (Oslo) Olav Lyngstad. Timothy Goldsmith (winner).

12. Meeting onshore Marine personnel department of BW Fleet Management held another successful Officers 11 Conference in Oslo from 23-25 September.

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13 World Horizon Issue 03/2015 BW Cryptic Crossword 29

1 BW Cryptic 2

Crossword #2 3 4 Welcome to the BW Cryptic Crossword. This puzzle consists of 5 cryptic clues all having a maritime 6 7 or BW-themed answer. (Some 8 9 lateral thinking is required.)

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Contest rules: • Please submit a scanned copy of your entry to lisa.lim@ 22 bwmaritime.com by 30 November 2015, 1800h SGT (Singapore Time) with your full name, department, email address and a contactable number on the top right hand corner of the page. 23 • three complete and correct entries chosen from a hat will receive a limited edition BW Moleskine notebook. • Winners will be notified via email. Answers will be revealed in the next edition of World Horizon.

Across Down 2. Altitude with the (L) moved forward 1. Shorts that you wear that make things disappear 5. The right of the vessel 2. A home that is not heavy 7. After removing the ER 3. To transfer, also red wine of the Portuguese 8. The belt in the sky 4. In school and status 10. Hot attire, white & orange 6. Our way of making energy 14. Support that is not turned on 9. A good day greeting or a lover 17. A timekeeper that is not sitting 11. Protection on the beach 19. Safety from bombs, also used to store explosive materials 12. To salvage, also to make safe 20. Line for safety and a caring man 13. Jelly that runners use, also a fossil 23. An electric flow, also a strong force that can carry you 15. The English version of GDF Suez 16. Commissioned above a Captain 18. The roof covering the hull, also a collection of cards 20. The rim where robots and aliens fought 21. A Japanese staff with the brightest star in this system Created on TheTeachersCorner.net Corssword Maker 22. Making light of liquid 30 Special Thanks World Horizon Issue 03/2015

October Billy Chiu, SVP, Quality, Audit And Compliance 25 Dela Cruz Diosdado D., Third Engineer Years Special November Rolf Harald Bjørnø, Chief Electrical Officer Serra Felicisimo II Tejero, Second Enginner Villacura Bonifacio Jr. Opingo, Second Enginner

December Alonzo Aurelio Romion, Motorman Thanks Laserna Dindo Alinsod, Motorman Ole-Vidar Berglund, Electrical Officer

April Bjørnar Jensen, Master to... 20 Surajit Chanda, Fleet Manager Years October Dela Rosa Domingo Regla, Second Officer Diaz Neri Severino, Bosun Emilio Dennis Pacantara, Motorman Gregorio Luisito De Vera, Engine Fitter Guatno Enrico Cruz, Motorman Paler Jerry Barrete, Third Officer Sambit Srimany, Master

November Aranzanso Jessie Florentino, Master Cada Rodel Sagunde, Motorman Castillo Rodelio Lasam, Mechanical Technician Delgado Marvin Cabahug, Able Seaman Gula Macario Jr T., Bosun Ole-Anders Johansen, Master Virtudes Robin Cadelina, Able Seaman Villamor Antonio Cubrita, Second Cook Pedrosa Joel C., Able Seaman

December Jupio Tommy O., Able Seaman Mohseen Khanche, Marine Superintendent World Horizon Issue 03/2015 Special Thanks 31

October October Almojuela Nestor O., Chief Cook Baclayanto Jose Errol Curio, Reeferman 15 Baluco Warlito R., Oiler 10 Bartolome Aaron Clemente, Able Seaman Years Bangoy Lorenzo R., Oiler Years Caramay Ariel Banaga, Able Seaman Baticos Richard A., Fitter D’cruz Charles, Mechanical Technician Briones Dennis T., Oiler Enriquez Nicasio Hernandez, Chief Engineer Cabug-Os Michael, Able Seaman Gestopa Enrico Jr. Seno, Able Seaman Canong Henry Ulaira, Chief Steward Cook Hernandez Julieto San Juan, Cargo Engineer Chiva Ronnie L., Fourth Engineer Kouame Koffi Trinite, GP Marine Chon Hyon Chol, Master Lim Eder Santos, Second Officer Devender Kaushal, Second Engineer Plaza Rhys Sy, Master Espana Joseph P., Able Seaman Fernandez Irineo P., Oiler November Gabayno Ronilo G., Oiler Balan Santhosh Kumar, Able Seaman Gurin Sergiy, Offshore Installation Manager Diplo Rose Georgina, Planner Kochukulam Appu Gireesan, Mechanical Technician Figueroa Mark Louise Lunasco, Ordinary Seaman Knut Georg Kvifte, Manager Information Technology Medina Miguelito III Gabriel, Chief Engineer Lancy Prasad D’souza, Chief Engineer Lico Ernesto A., Able Seaman December Lumandog Romeo Jr V., Fourth Engineer Baidaks Konstantins, Fitter Loable Cirilo Abiado, Electro Technician Dissamoussa Patrick, Process Operator Mag-Usara Bruce B., Pumpman Rutagines Louie I., Messman Malik Purna Chandra, Motorman Melvin Cardozo, Chief Cook Naciongayo Fred T., Oiler Nastor Ronaldo S., Able Seaman Preciosa Jevey J., Oiler Pryde Thomas William, Chief Engineer San Martin Yorino S., Bosun Tarrant Philip, Master Tequil Nemesio B., Pumpman

November Abdul Rasheed, Cook Cabasa Ramon Benadera, Second Cook Chandrashekhar Menon, Master D’souza Urban Dominic, Sr. Maintenance Technician Deck Joseph Joshy, Engine Fitter Kurup Kesava Velayudha, Electrical Officer Lagura Arnie D., Bosun Malaluan Justino T., Pumpman Maruvan Krishnan, Electrician Naringahon Ruel Rada, Able Seaman Torre Wilfredo T., Third Engineer Yong Meng Heng, Procurement Controller

December Aguilar Rodrigo Q., Third Engineer Almirol Garry G., Third Engineer Banagan Ronaldo Pingol, Second Officer Chee Emmanuel Orate, Chief Engineer Dcouto Burk, Engine Fitter Retired Johnson Michael, Production Superintendent October Kalinin Viacheslav, OIM Dinesan Ashari Kandi, Able Seaman Nallasubbu Sekar, Third Engineer Tore Rødbøl, Master Rajiv Atrey, Master Heritage

This photo was taken at SingaPort ‘94. The exhibition and conference gave an opportunity for shipping businesses to display new products and meet new clients from all over the world. Dr Helmut Sohmen gave the keynote speech on “Challenges and Prospects in International Shipping Beyond 1995”.

Fifth from Left, then Minister for communications and Minister for the Environment Mr Mah Bow Tan, with Dr Sohmen.

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