INTSOK Annual Report 2004

www.intsok.com Contents

03 Managing director’s foreword

04 New members and higher activity level

05 Competitive technological capabilities

07 Expanding activities in key markets

10 A growing international market

11 International achievements

15 Training initiatives in key markets

16 Outlook

17 The INTSOK Team

18 INTSOK partners (December 2004)

19 INTSOK board of directors

Front page picture: Northern Lights from Norway (Photo: Scanpix)

2 Internationalisation activities by the Norwegian petroleum cluster

The strategy of the Norwegian Oil and of our relationship building in this region. Gas Industry is to grow an international Exchange of professors and students and business. Despite tough international vocational training programs could be a competition, the Norwegian industry has new element added to our strategy for achieved several break-throughs in exchange of experience and transfer of international markets. knowledge.

INTSOK has expanded its agenda again INTSOK identified a need to improve the in 2004 to support the petroleum cluster framework for internationalisation in the in international markets – and we will “2010 study” delivered to the Minister of continue to provide opportunities for our Petroleum and Energy – and the Top partners to meet key clients. The first ever Management Forum – in February 2004. US Norway Oil and Gas Industry Summit The Government has increased its sup- in Houston in 2005 is just one example. port for Research and Development, one important recommendation in the study. We have strengthened our dialogue with But there is more work to be done to en- Russian companies during the last twelve sure that the Norwegian petroleum cluster months – and we will continue build the can meet international competitors on a relationship with Russia in 2005. level playing field.

China has been launched as a new main Gulbrand Wangen market for the Norwegian petroleum Managing Director, INTSOK cluster and our commitment was confirmed by the visit of the Norwegian Minister of Petroleum and Energy to China in early 2005.

West Africa has become an important market place for the Norwegian petroleum cluster, from Mauritania in the north to Angola in the south. We believe we have the potential to expand our dialogue in West Africa to ensure that the Norwegian contractors and service industry get a fair chance to bid for the opportunities in the fast expanding deepwater markets. Norwegian research institutes, training institutions and universities should be part

3 New members and higher activity level INTSOK is now recognized at home and abroad as a key organisation in promoting the Norwegian petroleum cluster internationally. INTSOK’s activities have expanded significantly in 2004. Fifteen companies joined as partners, bringing the total to 119 by the end of the year.

Many partners have a number of subsid- Norwegian petroleum cluster. This is a iaries also working internationally. INTSOK substantial improvement from a similar Number of INTSOK partners therefore represents some 160 companies survey in 2000 when 65 per cent

119 in total. The graph shows the increase in responded positively. 105 number of partners since INTSOK was founded in 1997. STRONG GOVERNMENT SUPPORT 83 78 The Norwegian government is actively INTSOK’s PRIORITY & STRENGTH supporting the many international initia- INTSOK’s priority is to provide relevant tives, and the Ministry of Petroleum and 42 market information to the partners and Energy has become an integral partner in to communicate the capabilities of the the promotion of Norwegian expertise and Norwegian supply industry to key clients technology abroad. Ministers were instru- 1997 2000 2002 2003 2004 in overseas markets. The foundation’s mental in opening doors to key decision- strength is its ability to draw upon the makers and clients during visits to Algeria, joint knowledge and experience among Azerbaijan, Italy, Iran, Libya, Kazakhstan, its partners. The internal network meet- Mexico, Nigeria, Russia and Singapore in ings have become an important venue for 2004. INTSOK founders exchange of views and market insights among the participants. The smaller and The Government emphasized in the 2004 Norwegian Government medium-sized partners can benefit from White Paper on the Norwegian Oil and Ministry of Foreign Affairs the larger companies’ experience. Gas sector that “it would actively support the internationalisation of the Norwegian Ministry of Petroleum Energy The INTSOK secretariat has nine full-time oil industry, continue to develop INTSOK Ministry of Trade and Industry employees. The organisation is based in and Petrad, and work towards securing Oslo with an office in Stavanger. INTSOK the Norwegian industry the same competi- Oil Companies has also engaged local advisors in An- tive terms as their international competi- Hydro gola, Brazil, Canada, Iran, Nigeria, Russia tors”. Members of Parliament (Stortinget) and the US. A local advisor will also be concluded in a similar way when they Statoil recruited in China. Their local knowledge discussed the Government’s White Paper and experience is adding significant value in June 2004. Professional Organisations to the internationalisation efforts under- Federation of Norwegian taken by the Norwegian petroleum cluster. The Ministry has in recent years signed a Manufacturing Industries number of co-operation agreements with countries of interest to the Norwegian Norwegian Shipowners SATISFACTION WITH SERVICES Association INTSOK has done a survey of members’ petroleum cluster. satisfaction with the services provided. The Norwegian Oil Industry Association More than 85 per cent of the partners said that they were very satisfied with the efforts made by INTSOK on behalf of the 4 Competitive technological capabilities Norwegian companies are involved in projects ranging from Arctic conditions in Sakhalin, North Caspian and the Barents Sea to deepwater in West-Africa, Brazil and Gulf of Mexico. The large projects tend to get the big headlines, but many good ideas developed in smaller and medium sized companies are converted into competitive products and services for the global market.

Most of the INTSOK partners have R&D HIGHER ON THE AGENDA an annual turn-over within the oil and INTSOK has strengthened its focus on the gas sector below 10 million USD annu- R&D agenda in 2004 in close co-operation ally. Many of them supply a wide range with research institutions and universities. of advanced, cost-effective and flexible A joint workshop was organised in Brazil quality products and services to the global together with Demo 2000 and the Pro- market. They are innovative and quick to cap 3000 programme run by Petrobras. respond to the customers’ requirements. Norwegian and Brazilian experts explored Their international business is growing opportunities for technology collaboration and the international contribution to turn- with the aim of qualifying new deepwater over is already above 50 per cent in some technologies through pilots and field trials. cases. Norwegian research institutions are rap- idly expanding their business abroad. Aker Kvaerner is currently building two major concrete gravity-based SINTEF, the Norwegian research institu- substructures for Sakhalin Energy, tion with 1800 employees, has currently operated by Shell. One is the Piltun some 30 percent of its revenues from out- offshore platform, the other is the side Norway and the international share Lunskoye platform. Aker Kvaerner has is increasing. The institution has delivered been able to revitalise experience and several field development plans in Iran competences developed through more and is also involved in a R&D project on than 20 years of using concrete platforms increased oil recovery. on the NCS. Aker Kvaerner has revitalised Norwegian concrete technology to construct two con- SINTEF together with the Institute for crete gravity-base structures in Sakhalin The two substructures are amongst the Energy Technology (IFE) have developed (Photo: Aker Kvaerner). biggest structures ever built in Russia with OLGA 2000, a dynamic software tool for a Russian content of about 85 per cent engineering and operation of multiphase and a workforce of some 2000 Russians production systems. OLGA, marketed by involved in their construction. Scandpower, has become the market- The development of the deepwater leading simulator for transient multiphase offshore fields off the coast of Angola is flow in wells and pipelines used by more another example. Three Norwegian based than 100 companies worldwide. companies, FMC Technologies, Aker Kvaerner and Vetco have secured 75-80 IFE is an internationally recognized centre per cent of the subsea market based on of excellence in the field of internal the technologies and competences devel- corrosion of oil and gas pipelines as a oped on the NCS. result of a series of joint industry projects. 5 Subsea Technology Solutions.

IFE’s tracer technology is also widely used THE NCS LABORATORY internationally. For instance the Institute The Norwegian Continental Shelf provides tracer services on five fields in has for 30 years been a laboratory for Venezuela. developing new cost effective solutions and technologies. Research and develop- Rogaland Research (RF) is recognized ment has been important in order to for its full scale Drilling and Well Centre, reduce costs, increase recovery and se- with testing sites, flow loops and related cure sound environmental solutions. laboratories while the Norwegian Geotechnical Institute (NGI) has world- The major factors in building industrial leading competence within geotechnics competitiveness in the Norwegian oil and and engineering geology. gas sector have been development of several world-class oil and gas fields and Norwegian universities in Bergen, pioneering technological projects, Stavanger, Oslo and the Institute for world-class maritime knowledge, Petroleum Technology and Applied innovative and risk-willing firms, large Geophysics at the Norwegian University R&D investments and strong quality and of Science and Technology in Trondheim price competition. (NTNU), are also expanding their international co-operation in the petroleum The partnering between the sector. NTNU has for example signed oil companies, Norwegian as well as an agreement with National Geophysi- international, the supply and service cal Research Institute of India on joint industry, the research institutions and 4D research. The visit by the Norwegian academia has made Norway one of the Minister of Petroleum and Energy, most fertile environments for technological Mrs. Thorhild Widvey, to Libya resulted development. Access to superb engineers in an agreement for future collaboration and strong project teams has enabled the between Sintef, NTNU and the national oil Norwegian oil industry to deliver on time, company in Libya. on quality and on cost. 6 Expanding activities in key markets INTSOK’s objective is to work with its partners to expand the business activities in the international oil and gas markets. One of the organisation’s main priorities is to create settings in which its partners can meet and present their products, capabilities and services to international customers, oil companies, contractors and fabricators.

In 2004, China was upgraded to INTSOK has hosted seminars, workshops become one of INTSOK’s main markets and match-making events where Russian in addition to Brazil, the Gulf of Mexico, oil specialists have been able to interact the UK Continental Shelf (UKCS), Russia, with their Norwegian counterparts. More Iran, Nigeria and Angola. Local repre- than 230 people attended an offshore sentatives are available to partners in all seminar in Moscow in January 2004, most the main markets and will assist INTSOK of them Russian participants. partners in gaining access to business opportunities. INTSOK has also entered INTSOK has also hosted visits to into agreements with experienced Stavanger by Russian oil managers and advisors in Mexico and Canada. specialists, such as the visit from the Lukoil drilling companies, where they were INTSOK is monitoring developments introduced to Norwegian companies and of projects in the Caspian, North Africa, technologies. Norwegian companies also Iraq and Venezuela. Updated information visited Lukoil in Volgograd to get insights is provided on 50 international projects into Lukoil’s plans for the Korchagin field. The Norwegian Prime Minister, and presented on the INTSOK web. Kjell Magne Bondevik, and the The development of the giant Kashagan Kazakh Minister of Energy, RUSSIA OF GROWING INTEREST field in the North Caspian has led to Vladimir Shkolnik (right), met both Efforts aimed at the Russian market and increased interest among INTSOK in Kazakhstan and Norway in the Russian oil and gas companies have partners for business opportunities in 2004 as the links between the two countries were strengthened. been intensified. Norwegian companies Kazakhstan. The Norwegian Prime could have a competitive advantage in the Minister, Mr. Kjell-Magne Bondevik visited future developments in the Barents Sea, Astana in May 2004 and the Kazakh where the giant Russian Shtokman gas Minister of Energy and Mines, Mr. Vladimir field could be one of the world’s largest Shkolnik, attended the ONS event in offshore development projects ever and a Stavanger in August. project that will require technology at the front edge. The Italian oil company ENI is operator for the project, one of the largest off- An increasing number of INTSOK partners shore projects in the world, which ENI are active in the Russian oil and gas sec- has presented to INTSOK partners on a tor. The development of the Prirazlomnoye number of occasions in Milan, London and field in the Pechora Sea in the north, by Stavanger. the Russian operator Sevmorneftegaz, has led to contracts for companies such MEETING THE CLIENTS as Tromsø Skipsverft, Maritime Pusnes, INTSOK organised business missions to Maritime Hydraulics, Glamox, Siemens Houston, Aberdeen, London, Paris, Milan, and Autronica. Mexico, China and Australia in 2004. The 7 China – a new prime market The emergence of China as a have ambitious plans for expanding themes like Norwegian deepwater new prime market for INTSOK is offshore production, especially in the technology and enhanced oil recovery a result of the expanding offshore Bohai Bai and in deep water offshore experience have been of special inter- market in the country and China’s East China and in the South China est to the Chinese oil community. Sea. ambition to increase domestic oil One example of the new business and gas production. Chinese oil companies are also relations is the agreement between accessing many of the international Atlantis Deepwater Technology Hold- The country has increased imports of markets of interest to the Norwegian ing and China Oilfield Services Ltd. oil by 400 per cent in just four years, petroleum cluster. More than 300 The two companies have signed a making the country the second largest people from the Chinese oil industry Letter Of Intent for use of Atlantis importer and consumer of oil after met the Norwegian companies in the deepwater technology in the upcoming the USA. The Chinese oil companies first business mission to China, and China deepwater programme.

missions were well attended by INTSOK based suppliers, and around half of these partners and well received by the oil companies consider the UK to be their companies and contractors they met. most important market.

The “Houston Week” has become The cross-border co-operation has been a tradition and is now one of the most strengthened significantly in recent years important events in the INTSOK calendar. and the new treaty will further stimulate The theme for the 2004 conference was developments in the border corridor. “Gas – the fuel of the Century”, with A mentor programme for small and a special focus on LNG. The conference medium-sized companies in the UK and attracted a high quality audience. The Norway also began in 2004 and is another event was organised for the sixth time reflection of the willingness to share and major customers like ExxonMobil, experience across borders. ChevronTexaco, Shell and Marathon took active part in the workshops. GOOD RELATIONSHIPS ARE CRUCIAL The Norwegian oil and gas industry The activities enabled partners to present depends on good relations, with national their companies, products and services to governments and the national oil clients and potential clients. companies – who are key clients. The ONS attracted delegations from Norwegian experience is of interest to several of INTSOK’s markets and provided THE UK-NORWAY SHARE FAIR many countries. Many governments an opportunity for exchange of experience The “The UK-Norway Share Fair” initiative – and national oil companies – would like and strengthening of relationships. was launched in 2003. The two events in to learn from the way we developed an 2004 – jointly organised with Trade advanced and competitive industry, but Partners UK – showed that the Share Fair we are up against tough competitors from has been welcomed by the industry and countries, offering more credits, export it has grown in importance as a meeting guarantees, market support – and political place on both sides of the North Sea. The support. Building relations with ministries UK represents some 25 per cent of the and national oil companies is becoming total international revenues for Norwegian increasingly important as the market op- 8 portunities expand in West-Africa, Latin ment on institutional co-operation between America, Middle East, China, Russia and the Department of Petroleum Resources the Caspian. (DPR) and the Norwegian Petroleum Directorate was signed in 2004. The Iran-Norwegian relationship is a good Venezuela has looked closely at the example of how the dialogue between Norwegian experience in building a private governments is providing an excellent ba- oil and gas sector. A joint seminar was sis for INTSOK partners to build business held with Camera Petrolera and PDVSA in links to the Iranian national oil company Stavanger in October. The representatives and the Iranian oil industry. The Iranian from Venezuela expressed a clear wish for Deputy Oil Minister, Mr. Nejad Hosseinian, more Norwegian companies to engage in has involved himself directly in the dia- the development of the petroleum sector logue with the Norwegian oil industry. in Venezuela.

In Nigeria the MoU, which was signed in More than 50 people from 30 Norwegian 2000, has led to development of closer companies joined the business mission to ties between the key players in both Mexico. “Mexican offshore challenges and Iran’s Deputy Oil Minister Nejad Hosseinian (left) talking to countries. The visits to Nigeria by the relevant experience from the NCS” was Statoil’s Ole Johan Lydersen and the Norwegian Minister of Energy, Mr. Einar the key theme during the event. Mexico Norwegian Ambassador to Tehran, Steensnæs, and to Stavanger by the has ambitious plans for new investments Ole Kristian Holthe. Presidential advisor on oil, Dr. Edmund in the offshore sector and Norwegian M. Daukoru, provided opportunities to experience is relevant for the forthcoming strengthen the relationships. An agree- developments.

ONS 2004 – a resounding success ONS 2004 was a record show latest technologies developed by with more than 33000 visitors. Norwegian companies. The mem- The event organised in Stavan- bers of the delegations got a good ger every second year is the understanding of the capabilities and experience of the Norwegian most important meeting place petroleum industry. Thorhild Widvey, Norwegian in the oil and gas sector in Minister for Petroleum and Energy. Europe. ONS attracts high-level INTSOK’s International Oil and visitors and exhibitors from all Gas Business Day was included corners of the world. in the programme. The event was opened by the Norwegian Minister INTSOK and its partners for Petroleum and Energy, invited some 170 clients from Mrs. Thorhild Widvey. The key note Algeria, Angola, Nigeria, Iran, addresses were delivered by Kazakhstan, Russia, Brazil, Mexico Mr. Helge Lund, President and Venezuela to Stavanger to and CEO of Statoil, and Mr. Tore meet Norwegian companies and Torvund, Executive Vice President Venezuela’s Deputy Oil Minister get first-hand insights into the of Hydro. Luis Vierma (right) talking to INTSOK’s Willy Olsen.

9 A growing international market 2004 was a particularly eventful year with oil prices at historic high levels. The growth in demand stretched the world’s oil infrastructure to unexpected extremes.

The result of the demand growth is a The Norwegian oil industry is however need for sustained high levels of invest- faced with a situation where its main Changing markets (billion USD) ment in infrastructure and new oil and markets, the Norwegian Continental Shelf, 45 gas production. Partly in response to this the UKCS and the Gulf of Mexico – the heightened price, the industry has begun more mature markets – will gradually 40 to increase its spending on exploration decline in the next decade. The UKCS is 35 and production. the most mature and investment levels 30 are expected to decline substantially even 25 MEDIUM TERM OUTLOOK though the oil price may bring forward The International Energy Agency suggests projects previously seen as uneconomic. 20 in its medium-term outlook that by 2015 15 world oil demand will have risen by over GROWTH MARKETS 10 15 million barrels per day from the current The graph to the left shows a scenario for 5 mark of 82 million barrels per day. The market developments to 2010 in billion US IEA’s view is that there will be three prin- dollars. The growth markets represented 0 2004 2006 2008 2010 cipal exporting regions – the Persian Gulf in the figure are the investments planned Mature markets states led by Saudi Arabia, Iran and Iraq; in Nigeria, Angola, Russia, the Caspian, Growth markets West-Africa and Russia. Between them Iran, Brazil, Venezuela and Mexico. those three regions will provide almost 80 per cent of daily oil exports by 2015. International markets represented close The IEA’s forecasts match the consensus to 40 per cent of total turnover in the of views across the industry. Norwegian supply and service industry in 2003, according to the latest study review In addition, international gas demand will by the Norwegian Institute for Research in grow even faster and LNG trade will in- Economics and Business Administration crease substantially in the years to come. (SNF) on behalf of the Ministry of Petro- leum and Energy. INTSOK’s market focus reflects very much the trend described by IEA, and by the annual markets assessment made by Douglas-Westwood.

The annual review of the global offshore market developed for INTSOK expects to see increasing levels of expenditure in the offshore oil and gas throughout the period 2005-2008. 10 International achievements The Norwegian suppliers and service companies have demonstrated their competitiveness in international markets in recent years and have succeeded in winning a number of major international contracts. Many of these contracts are a result of an excellent track record from projects on the NCS.

One of the major successes last year Sakhalin have also resulted in contracts was the Aker Kvaerner contract for for a number of other Norwegian com- fabrication, outfitting and testing of seven panies. York Novenco won its biggest barges for oil production in the giant contract ever in the Shell-operated Kashagan oilfield in the north Caspian projects in Sakhalin, consisting of design Sea, offshore Kazakhstan. and manufacture of approximately 30 very large containerized Air Handling Units, in Another success was the contract that stainless steel. was signed between Bergesen d.y. Offshore Group and the Australian oil THE SUBSEA INDUSTRY company Woodside for the operation of The Norwegian subsea cluster “Berge Helene” as a FPSO on the continues to win major contracts in West Chinguetti Field, offshore Mauritania. Africa, Gulf of Mexico and Australia. The Some 60-70 per cent of the project budget sub-sea industry has a leading position will be spent in Norway. A large number of internationally with close to 80 per cent Norwegian companies are involved in the market share. The skills, experience and project, which is the first development in technology are constantly expanding due Mauritania in West Africa, in 750 meters of to complex projects like Snøhvit in the water depth. Among the Norwegian Barents Sea, Ormen Lange in the companies involved are Vetco, APL, Norwegian Sea and deepwater projects in Framo Engineering, FMC Technologies, Gulf of Mexico, Angola and Nigeria. The Berge Helene has been converted ABB and Smedvig. to a FPSO and will be used on the Chinguetti field, offshore Mauritania FMC Technologies is expanding its sub- (Photo: Bergersen d.y.). MARKETS’ SHARE OF TURNOVER sea manufacturing and service capabili- The UKCS and the Gulf of Mexico are still ties in Angola. The company has signed the most important market places for the contracts with Total to supply subsea Norwegian service- and supply industry, systems and technical services related to but an increasing share of the sales is to installation and start-up of the Rosa proj- markets in Southeast Asia and Australia, ect offshore Angola. FMC Technologies West Africa and Latin America, according has also been chosen to supply subsea to the study by SNF. systems and related services for the BP- operated Greater Plutonio Project in Block Norwegian companies have during 18, offshore Angola. the last year consolidated their market positions in many of the most exciting Other Norwegian companies are involved oil and gas provinces in the world. Aker as subcontractors to the subsea devel- Kvaerner’s major fabrication contracts in opments in Angola. CorrOcean will for 11 VALUE CHAIN

SUPPLY CHAIN Reservoir/ Drilling Subsea Platforms/fixed/floaters Operations Decomissioning seismic

Oil Companies Reservoir & Drilling Seismic Engineering & Operations project- Main management Contractors

E, I&T System Integrators Subsea Maintenance Fabrication & and modifications De- package comissioning Product supplier Suppliers Drilling Down-hole equipment & well Marine services Equipment & systems & models equipment Environmental Service Protection Companies Logistics & transportation

Research & Development Research & Development

Cluster Map – A gateway to the Norwegian Oil and Gas Industry: Norway has developed world-class clusters in the petroleum sector. This cluster map illustrates the strengths and capabilities of the industry along the value chain and supply chain. An interactive cluster map can be found at www.intsok.com.

example install systems to monitor corro- Hess for a subsea tieback development in sion in the subsea flowlines on the Plu- the same region. tonio project. CorrOcean has expended considerable effort over the last two years Another example of the technological sub- to re-design and qualify its systems for sea solutions developed in the Norwegian deepwater applications to 3000 meters. petroleum cluster is provided by Framo Engineering AS who has been awarded Aker Kvaerner is also winning contracts the contract to supply the world’s first in the subsea sector. The company has subsea Multiport Selector Manifold for the launched a new supply-chain model in Kerr-McGee Gryphon field in the UK sec- the subsea sector which has enabled the tor of the North Sea. company to deliver subsea systems with a shorter lead-time and at more competi- THE DRILLING CLUSTER tive pricing than previously possible. They The drilling cluster is increasingly explor- were chosen by Dominion Exploration & ing business opportunities internationally Production, Inc. to provide the production as a response to the decreasing market control system and steel tube umbilical on the NCS. Smedvig has moved into the for its Triton/Gold finger tieback project in ultra deep league of dual drilling. Operat- the Gulf of Mexico. Aker Kvaerner is also ing two of the world’s most advanced new delivering subsea equipment to Amerada generation drilling vessels for deep water 12 The LNG market The LNG market is fast growing organised during the official visit of King proven for Offshore Loading of Crude Oil, and Norwegian companies, ship- Harald V to Singapore last year. is now developed for regas LNG by APL. Kongsberg Maritime is among the many Remora Technology, with the financial ping companies, technology Norwegian companies targeting the support of ConocoPhillips, has developed companies and engineering LNG market. The company has supplied the unique HiLoad LNG Regasification companies are well positioned for automation and steering systems to a total Terminal as an innovative and environmen- the growth in LNG investments and of 59 LNG carriers. tally friendly solution to effectively connect to and import LNG as natural gas from any trade. The costs in the LNG-chain The first offshore concrete LNG terminals LNG carrier. have come down significantly over in the world are also under way. Aker the last decade and the trend Kvaerner was awarded the contract to con- Aker Kvaerner, Linde and Statoil entered continues, leading to high growth duct detailed design and planning activities a three-year LNG Technology Alliance for a project in the North Adriatic Sea. with the objective to develop cost-effective for the LNG industry. technology and solutions for the offshore Offshore LNG receiving terminals can also production, storage and offloading of lique- The Norwegian expertise in the LNG sector become a market for other technologies fied natural gas (LNG), thus enabling the was the key theme for a business mission developed on the NCS. The Submerged exploitation of larger gas fields in remote to Australia and a seminar in Singapore Turret Loading Buoy System, which is well areas.

represents a leap into the new world of fast. Over the 2005-2008 period MMO will deepwater exploration and production form the largest principal INTSOK market drilling. segment, valued at a total of approximate- ly USD 102 billion. It is also a long-term The drillship West Navigator and sustainable market, but requires local the semi-submersible West Venture knowledge and presence. are designed to operate in water depth of 2500 and 2000 meters respectively. Vetco is well-positioned in a number of the West Navigator has been drilling in water growing markets globally and has entered depths up to 1920 meters in a harsh en- into various contracts with national oil vironment and is currently involved in the companies and international oil com- extensive drilling programme implemented panies in Brazil, West-Africa, Australia, by Woodside on the Chinguetti field. Egypt, Iran and Kazakhstan. Norwegian competitiveness is rooted in the effective Norwegian-based companies also Norwegian-based companies also implementation models and the systems continue to have a major share of the international drilling equipment market continue to have a major share of the and philosophies developed through long- (Photo: Maritime Hydraulics). international drilling equipment market. term contracts on the NCS. Maritime Hydraulics has become the leading supplier of drilling packages Aker Kvaerner group launched its ambi- and modules for the large BP-operated tious plan to extend the operational life projects in Azerbaijan, delivering to three of four North Sea oil fields in 2004. The platforms, whilst Nymo is responsible for UK Health and Safety Executive ac- the drilling module for the Shah Deniz gas cepted Aker Kvaerner Operations as Duty development project in Azerbaijan. Holder of the Amerada Hess/Talisman- owned platform and the company took THE GROWING MMO MARKET on the management responsibility for the The market for maintenance, modifica- installation’s day-to-day operations. tions and operations (MMO) is growing 13 NICHE TECHNOLOGIES utility building contract was awarded to A large number of small and medium- Leirvik Module Technology A/S. sized Norwegian companies with niche products and technologies are breaking OIL COMPANIES EXPANDING into international markets. The two Norwegian oil companies, Statoil and Hydro, are expanding their ClampOn has won a contract to international activities substantially. Both supply non-intrusive Ultrasonic Subsea companies have diversified opportunities Sensors to the new BritSat project in the in profitable growth portfolios in Angola UK and will supply deepwater particle where they are participating in several key monitors for the Atlantis project in the Gulf projects. Both Hydro and Statoil are look- of Mexico. Another illustration is Epcon ing to Russia for future growth and have Offshore who has seen its international signed co-operation agreements with break-through in 2004 with its new pro- Gazprom for the development of the giant duced water treatment system. Shtokman field in the Barents Sea.

The company has been successful in Statoil’s international E&P operations a number of markets, including Brazil are an important platform for the group’s where the equipment will be used on the growth ambitions in the years ahead. The Statoil is involved in the construction of the large export pipeline Garoupa platform. company sanctioned development of the for crude oil from Baku in the Caspian to large Aghbami field in Nigeria in 2004. Ceyhan in the Mediterranean. The BTC Another example, Plugging Specialists In Azerbaijan, Statoil is involved in the pipeline will be able to transport more than International – PSI – is a Norwegian development of the Azeri-Chirag-Guneshli one billion barrels of crude oil daily to world company specializing in remote-controlled fields, the Shah Deniz gas projects and markets and will be operational in 2005. pipeline isolation systems. It is a service the export pipelines for oil and gas from (Photo: Statoil) company where the performance of pipe- Azerbaijan. In Iran the development of the line isolation operations is the core activ- Statoil-operated South Pars field’s phases ity. The PSI SmartPlug is the first field- VI-VIII is well underway. proven Remote Controlled (tether-less) Pipeline Isolation system in the world. Statoil has also acquired an interest in the In Salah and In Amenas gas projects in Rapp Bomek in Bodø, Northern Norway, Algeria. In Venezuela, the company has has also built a strong market position, begun exploring the Plataforma Deltana especially in West-Africa, and is now licence. Future exploration will also take entering Brazil. The company has deliv- place in the Gulf of Mexico, the Middle ered some 700 fireproof doors to floating East and the Caspian region. production platforms offshore Angola and Nigeria from its location in the far north. Hydro is preparing to explore in the Safi Basin, off the coast of Morocco and has Reslink is another specialist technol- bought into an exploration license in the ogy company growing its international Majunga basin offshore Madagascar. The developments of the deep-water business substantially. Some 70 per cent Hydro has been engaged in Libya for offshore potential in Angola are providing of the company’s turnover is currently in several years and is producing onshore an increasing number of jobs for Angolans. international markets. Shell is using Res- fields in Murzuq and Mabruk. Hydro also (Photo: Hydro) link’s sand screens in Western Nigeria. started a new drilling operation in 2004 on the Anaran field in Iran. Hydro has been Norwegian companies have won a sub- awarded the operatorship for the Telemark stantial share of the contracts awarded field in the Gulf of Mexico to explore and for the BP-operated Clair project on the develop the field at 1300 meters of water UKCS. Aker Verdal is delivering the jacket depth. and piles whilst the living quarters and 14 Training initiatives in key markets Transforming the oil and gas wealth into economic growth, reducing poverty and corruption is a challenge in several of INTSOK’s markets. Many governments are looking for ways to maximise the benefits from the oil and gas activities. They are not only looking for oil revenues, but want to create employment and build a competent and capable local industry.

In West-Africa, Latin America, the Middle a major subsea training course for the East and the former Soviet Union foreign National Petroleum Institute in Angola. companies are asked to meet ever-more- Teachers from the Institute took an exten- stringent targets for local content and sive training course in Norway before they legislation is put in place to ensure that began teaching Angolan students. The the host countries secure their share of first 30 students graduated in 2004 and the value creation. found jobs in the Norwegian companies. This is an excellent result for a project that The Norwegian experience in developing was initiated only in June 2002. a strong petroleum cluster is attracting interest. INTSOK has led training projects In Nigeria, INTSOK has developed a that have been welcomed by the govern- project with the objective of enhancing the ments, national oil companies and the fabrication capabilities of the local oil and oil industry in several countries. Through gas industry. More than 50 companies workshops and seminars INTSOK is have been screened and almost a dozen developing relations and contributing to Nigerian companies may be invited to the transfer of knowledge, technology and participate. The project has been funded Rogaland Training and Education Centre experience to the oil sector in co-operat- by NORAD and the Norwegian Ministry is involved in training programmes in Kazakhstan. Two of the representatives ing countries. INTSOK works closely of Petroleum in the initial project phase. from Kazakhstan are seen together with with Petrad, the Norwegian institution Several INTSOK partners, like Nymo, INTSOK’s Odd Instefjord (left) and Ole established to support training initiatives NLI Alfred Andersen and DNV, have Imsland from Rogaland Training Centre internationally. The organisation runs pro- been involved in the project together (right). grammes that cover the key elements of with Nigerian counterparts. The project petroleum sector management from policy will include a module-based training and formulation, through exploration, develop- consultancy-support programme covering ment and production to abandonment and elements such as: Quality Management, clean-up. Health, Safety, Environment and Fabrica- tion Methodologies. Many INTSOK partners have also initiated major training programmes for local staff Training has also been a key component as part of their business activities in West- in developing relationships with Kazakh- Africa, Iran and the Caspian. stan. The Norwegian Ministry of Foreign Affairs has financed a pre-study of the One successful project, “Train the vocational education system. INTSOK is Trainers”, aimed at subsea technology working closely with Rogaland Training & and installation, was finalised in 2004. Education Centre, Petrad and the Univer- FMC Technologies, Vetco, Aker Kvaerner, sity in Stavanger to move the vocational INTSOK and NORAD have sponsored education project forward. 15 Outlook The Norwegian petroleum industry is now making huge efforts to expand its international business activities to take advantage of the international market opportunities and solving the challenges that come with increased international competition.

The development and deployment of new The Board proposed improvements in the technologies will play a critical role in en- financial sector, more support for tech- suring access to affordable and abundant nology developments aimed at interna- energy in the future. The technologically tional markets and strengthened market advanced Norwegian oil and gas indus- support. Some progress has been made, try should therefore be well-placed to especially in the financing of research and increase its international business in the development. The ability and willingness years to come. to apply new technologies will continue to be a driving force in further development The industry is now increasingly focusing of the Norwegian petroleum cluster. on the challenges in the Arctic region. The challenges in the Arctic will be high on the More should however be done to provide agenda in the international oil industry for the Norwegian petroleum community with decades to come and INTSOK therefore the same conditions as the competitors made Oil and Gas Developments in Arctic enjoy. INTSOK will work closely with In- and Cold Regions the theme for the first- novation Norway, relevant ministries and ever US-Norway Oil and Gas Industry research institutions to ensure that the Summit in Houston March 2, 2005. The companies can access competitive terms Norwegian petroleum cluster is actively as they expand internationally. involved in finding technological solutions King Harald V of Norway spoke at the that will enable the industry to exploit INTSOK will continue to focus its attention first US–Norway Oil and Gas Summit these resources in a profitable, safe and on markets where the Norwegian oil and in Houston in February 2005 and was environmentally sound manner. gas industry has a competitive edge and presented a real Texan hat by the Mayor of Houston, Bill White (Photo: Scanpix) will intensify marketing efforts towards the Norwegian competence is in demand, large oil companies and contractors as not only for goods and services, but also well as the national oil companies. for sophisticated petroleum administra- tion and management skills and the other strengths of the Norwegian petroleum community.

In the 2010 study presented to the Minis- ter of Petroleum and Energy in 2004, the INTSOK’s Board recommended improve- ments that would strengthen the competi- tiveness of the Norwegian petroleum clus- ter and enable the Norwegian companies to enjoy the same support as companies from other countries.

16 The INTSOK Team Mr. Gulbrand Wangen Mr. Knut Aanstad Ms. Mariann Marthinussen Mr. Håkon Skretting Mr. Willy Olsen Mr. Werner G. Karlsson Mr. Per Hagen Ms. Ingvild Litlabø Mr. Einar Holmefjord Mr. Odd Instefjord Ms. Nikki Mooki Mr. Gulbrand Wangen Russia office US office Brazil office Angola office Vladimir Ryashin Angie Smith Joâo Carlos S Nunes Emilio M Grion The Norwegian Embassy The Norwegian Consulate General INTSOK INTSOK Povarskaya Str 7 2777 Allen Parkway, Avenida Rio Branco Rua Commandante Eurico Moscow RUS-000940 Suite 1185 156 Sala 629/631 Number 30, 1st floor Russia Houston TX 77019 20043-900 Rio de Janeiro Bairro do Cruzeiro USA RJ-Brazil P.O. Box 5613 Luanda

Angola Phone: +7 (095) 933 14 10 Phone: +55 21 2215 9458 Phone: +1 713 807 9451 Fax: +7 (095) 933 14 29 Fax: +55 21 2215 9459 Phone: +244 2 44 12 60 Fax: +1 713 521 9473 Mobile: +7 (095) 798 09 97 Mobile: +55 21 9803 0039 Fax: +244 2 44 78 92 Mobile: +1 713 299 6699 [email protected] [email protected] Mobile: +244 91502 426 [email protected] [email protected]

Nigeria office Iran office China office Moses O Kragha Mostafa Mansoori Advisor under recruitment INTSOK INTSOK The Norwegian Embassy c/o Kragha & Associates c/o Narvan ASA Ltd. - NIBC 1, Dong Yi Jie 1st floor, Foreshore Towers No. 1, 3rd floor, Mellat Tower San Li Tun 2A Osbourne Road, Okoyi Valiasr Ave Beijing 100600 P.O. Box 4216, Marina, Lagos P.O. Box 19395 China Nigeria 3446 Tehran, Iran Phone: +86 10 6532 22 61 Phone: +234 1 267 34 50 Phone: +98 21 201 2340 Fax: +86 10 6532 3113 Mobile: +234 80 33 58 58 Fax: +98 21 201 3371 [email protected] Mobile: +98 912 17 16 269 [email protected] 17 INTSOK partners (December 2004)

AC Marine Ipres Norway AS Sandvik GRAM as Air Products AS ITC AS Scandpower Petroleum Technology AS Aker Kværner ASA JM Consult AS Scandpower Risk Management Alustar Kaefer IKM AS Scan Mudring AS Amitec AS Kongsberg Maritime AS ScanRope Subsea Cables AS Anzett AS Leif Höegh & Co Schindler Stahl Heiser AS APL AS Leirvik Module Technology AS SeaFlex AS Atlantis Deepwater Technology LMG Marin SeaMeatric International AS Autronica Fire and Security AS, Management & Finance AS SICOM AS Div. Oil and Gas Marine Forecasting Centre Siemens AS, Oil and Gas B.A. Wahl Invest AS Marintek Simon Møkster Shipping AS Barlindhaug Consult AS Minox Technology AS SINTEF Petroleumsforskning AS Blom Maritime AS MPU Enterprise AS Stavanger-partner.com Bredero Shaw Norway AS Multiconsult AS Statoil ASA ClampOn AS Nexans Norway Stolt Offshore AS CorrOcean ASA NLI Alfred Andersen AS Storvik & Co Det Norske Veritas (DNV) Norconsult International AS Sørco AS Draka Norsk Kabel AS NORSAFE AS Technor ASA Drilling Support Systems AS Norsea AS The Bridge Group AS dsc Engineering Norse Cutting & Abandonment AS AS Trans Construction Easy Well Solutions (NCA) Tranberg AS Eide Marine Tech AS Norwegian Geotechnical Institute (NGI) Trelleborg Viking Eksportfinans ASA Nutec Crisis Management AS Tromsø Skipsverft AS Electromagnetic Geoservices (EMGS) AS Nymo Uniteam International AS Envira Ltd Odfjell Well Services AS Upstream Management Epcon Offshore AS Offshore & Marine ASA Valiant Industries AS Fabcon Management AS ONS (Offshore Northern Seas) Vetco Fire Protection Engineering AS Peder Halvorsen Industrier AS Wilh. Wilhelmsen ASA Fjord Engineering AS Petrolink AS YORK Novenco AS FMC Technologies AS Plugging Specialists International AS FMC Kongsberg Metering AS (PSI) FORCE Technology Norway AS Production Technology Integrated AS Framo Engineering AS (PTI) Frank Mohn Flatøy AS Proserv Group Fugro Oceanor Pro-Vision GANN Mekaniske AS R&M Industrier Glamox International Rapp Bomek AS Grenland Offshore Read Group AS GS–Hydro Norge AS Reinertsen Engineering AS Hartmark Consulting AS Remora Technology Helifuel AS ResLab, Reservoir Laboratories AS Hitec Framnæs AS Reslink AS Holta & Haaland AS Rogaland Research Hydro Oil & Energy Rogaland Training and Education IKM Testing AS Center Institute for Energy Technology (IFE) Safetec Nordic AS Imenco Engineering AS Safran Software Solutions AS

18 INTSOK board of directors Mr. Helge Hatlestad Ms. Anne Jorunn Møkster Mr. David Lysne Mr. R. Rasmus Sunde Mr. Morten Ruud

Chairman Vice Chairman Board Member Board Member Board Member Mr. Jørn Prangerød Ms. Randi Vesseltun Ms. Janne Julsrud Ms. Marit Warncke Mr. Odd Sverre Haraldsen

Board Member Board Member Board Member Board Member Board Member Mr. Gulbrand Wangen Ms. Valborg Lundegaard Mr. Steinar Gregersen

Board Member Board Member

19 OSLO OFFICE STAVANGER OFFICE Hoffsveien 1 A, 4th Floor Professor Olav Hanssens vei 7A P.O. Box 631, Skøyen P.O. Box 8034 N-0214, Oslo, Norway N-4068, Stavanger, Norway Phone: +47 22 06 14 80 Phone: +47 51 87 48 80 Fax: +47 22 06 14 90 Fax: +47 51 87 48 81 E-mail: [email protected] E-mail: [email protected]