MAERSK INTERNATIONAL Shipping Education
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In general, the A.P. Moller Group performed well in the first half of Cover: 1997, and expectations for the year as a whole are positive with an On 5 September 1997, Her Majesty Queen anticipated result somewhat above that of 1996. However, the result Margrethe named the world's largest con- may be considerably affected by major fluctuations in currency rates tainer vessel, SOVEREIGN MÆRSK, here and prices of shares and bonds, freight rates and oil prices, etc. seen after leaving Odense Steel Shipyard. during the remainder of the year. Photo: Jørgen Kølle Published by A.P. Møller, Copenhagen This is the essence of the Shipping Companies' report for the 1st half Editor: Hanne H. Clausen of 1997 published on 28 August. This is of course gratifying, and I Printers: Scanprint a-s should like to thank you all for your efforts. Layout: Kühnel MDD Copies: 13,600 Danish, 17,000 English The Shipping Activities improved during the first six months Local correspondents: compared to the corresponding period last year. The expansion THE AMERICAS: Tom Boyd continued with a number of new initiatives, including orders for AUSTRALIA: Maria Richards tankers, container vessels, car carriers and supply vessels, extended BANGLADESH: M. Shamimul Huq geographical coverage of Maersk Line's services and the implementa- BENELUX: Georges Caulier tion of several major projects in the offshore sector. FRANCE: Laurence Chollet GERMANY: Frank Gernert HONG KONG: Teresa Suen It is certainly also worth mentioning that in September 1997 the INDIA: Hoshang Vajifdar Lindø Shipyard delivered SOVEREIGN MÆRSK, named by Her INDONESIA: Kim Fejfer Majesty the Queen, a big sister to what were already the world's six JAPAN: Jesper Maajen largest container vessels. KOREA: Sean Lynch MALAYSIA: Loo Sook The Oil and Gas Activity in the North Sea likewise showed NIGERIA: Lucie Thompson improvement - considerable improvement - due to increased PHILIPPINES: Ruben S. Fajardo production and higher prices in Danish kroner. POLAND: Pavel Makuch PRC: Kaare Sand The strong US dollar has increased the US dollar debt, measured in SINGAPORE: Sonny Zin SPAIN: Javier Lopez Danish kroner. If the dollar stays at present level at year end, a TAIWAN: Alfred Guo considerable negative exchange rate adjustment will have to be made THAILAND: Chularack Voraviboonvate to the results of both the Shipping Activity and the Oil and Gas UNITED KINGDOM: Russell Harvey Activity. MAERSK AIR: Marita Petersen The associated and other companies in the A.P. Moller/Maersk MÆRSK CONTAINER INDUSTRI: Allan Kehlet Rieck Group generally performed well and achieved a total result MÆRSK DATA: Peter H. Knudsen substantially above that of the first half of 1996. Many new PAPYRO-TEX: Peter Sørensen initiatives, major investments and acquisitions of companies con- MAERSK MEDICAL: Marianne Maltow tribute to our overall goal - profitable growth. ROSTI: Karin Nielsen ROULUNDS: Elsebeth Bastholm But we must continue our efforts - competition has increased, and THE YARD: Leo Jensen the need to reduce costs has not diminished. We must therefore DANSKSUPERMARKED: Flemming E. Honum constantly increase our efficiency but also take new initiatives that Volume 36, No. 3 will improve, develop and expand our business. September 1997 ISSN 1395-9158 Reproduction permitted only after JESS SØDERBERG agreement with the editor. SOVEREIGN MÆRSK On a beautiful and sunny the Yard, A. P. Møller and the late summer's day, Friday 5 vessel by being present on this September 1997, Her Majesty the day. The Queen has previously Queen of Denmark named Oden- named two Lindø vessels. First - se Steel Shipyard's newbuilding when heir apparent - the tanker no 160. A.P. Møller's newest con- A.P. MØLLER in 1965 and in tainer vessel, which is the world's 1990 the container vessel yard's logo on one side and A.P. largest, was named SOVEREIGN MAJESTIC MÆRSK. Møllers on the other. MÆRSK. As a memento the Queen was pre- A large group of children from Shipowner and Managing Dir- sented with a gift by Mr Mærsk Munkebo and the employees of ector of Odense Steel Shipyard, Mc-Kinney Møller. Sovereign the Yard who followed the Kurt Andersen, welcomed the means monarch, but is also the naming ceremony from the quay royal couple and the guests for designation of a historic English made the day even more festive. the naming of a vessel which had gold coin. The gift was a 22 carat taken 201 working days to make. gold bracelet mounted with gold The guests at the naming The vessel's cargo carrying capa- coins. In the middle is a Sovereign witnessed the departure of city was described to the royal struck in 1887 on the occasion SOVEREIGN MÆRSK before guests of honour as a line of con- of Queen Victoria's 50th anni- they left the Yard. After trials in tainers from Amalienborg Palace versary as sovereign. To the left the Skagerrak the newbuilding to Fredensborg Palace and half- of this is a double Christian d'or called at Århus where the vessel way back again. from 1869 portraying the Danish was visited by the public. Then King Christian IX, and to the SOVEREIGN MÆRSK - under Shipowner Mærsk Mc-Kinney right a French Louis d'or from the command of Captain Henrik Møller gave a speech to Her 1653 of the Sun King, Louis Solmer and with Lars Munch Majesty the Queen and His Royal XIV. The Prince was presented Nielsen as Chief Engineer - Highness Prince Henrik. Mr with a memento in the form of a started on its first journey in Møller expressed his gratitude specially made pair of gold cuff- Maersk Line's service between that the royal couple honoured links with the Odense Steel Ship- Europe and the Far East. Her Majesty Qtieen Margrethe with Marsk Mc-Kinney Møller and Kurt Andersen. I ifi °n 4 July 1997 it was 25 I mBt years since A. P. Møller and for its partners in Dansk Under- grunds Consortium (DUC) be- c gan Danish oil production from o the Dan Field. Even though ex- > pectations as regards the volume of production were modest in 25 years 1972 compared to DUC's pre- sent production, the production start was an important milestone in the history of A. P. Møller and the Danish oil. This story started 10 years earlier when, for national reasons, Ship- owner A. P. Møller applied - and in 1962 was granted - a conces- sion for oil exploration in Den- mark. That year DUC and the present Mærsk Olie og Gas AS (then Dansk Boreselskab A/S) were established. In 1963 the con- cession was extended to include Prince He?irik mid the Danish part of the North Marsk Mc-Kinney Sea. The foundation for the oil Møller at the oil business was laid, but the road to inauguration in 1972. success was going to be long. Due to a dispute between Den- finds in the North Sea after the work, DUC was able to com- mark and Germany about the Danish-German border dispute mence oil production from the delimitation of the shelf area, was settled. Ar this time, it was Dan Field on 4 July 1972 - four DUC was prevented from work- planned to initiate production days before the original explora- ing on the North Sea finds in the from the field later known as tion period expired. period from 1969 to 1971. As Kraka, which had been dis- the continuation of the conces- covered in 1966 (and then given Then - as now - the day was not sion depended on DUC being in the name Anne). The potential especially celebrated. But the production before the end of the of the field was estimated at satisfaction with the results exploration period on 8 July 200,000 tonnes of oil per year. achieved found expression on 1 1972, the situation was serious. Work on the field's production August 1972 when m.t. MARIE Consequently, referring to the equipment had been started MÆRSK brought the first force majeure provisions of the when a few months later DUC Danish oil ashore at the Gulf Sole Concession, the concession- discovered the Dan and Gorm refinery at Stigsnæs. This event, aires applied for a prolongation fields. Dan held the previously which promised well for the of the exploration period. It was thickest oil/gas zone shown in future, was a festive day. granted - two years - but only the Danish area. As a starting after a great deal of political point, annual production was However, the optimism only trouble, which in fact marked estimated at around 500,000 lasted a short time. Certainly, the beginning of the ten-year tonnes of oil and, therefore, there was oil, but the "tight" concession dispute between A. P. DUC decided to concentrate on Danish chalk proved a very Møller and the Danish state Dan rather than Kraka. difficult adversary. Oil recovery which followed. from Dan did not live up to The platforms originally in- expectations. While the political discussion tended for Kraka were installed about the extension of the ex- at Dan. The work was initiated In 1975, A. P. Møller, via Mærsk ploration period was in progress, in August 1971 and, after Olie og Gas, took on the task of DUC was able to return to the considerable investments and operator for the Dan Field. Thus 23 began a long and hard struggle the introduction of water in- cubic metres of gas in 1997. This to find the best suited recovery jection, horizontal wells and the will correspond to approxim- methods for the oil in Dan's stub- STAR platform. It required con- ately 130% of Denmark's con- born chalk reservoir. siderable billion Kroner invest- sumption of these raw materials.