01 WorldHorizon 2015 QUARTERLY MAGAZINE OF THE BW GROUP MCI (P) 009/11/2014 Bridging Visions Meet Carsten Mortensen BW’s new CEO is the man-of-the-moment, poised to steer the Group to a great future Best Bounce Backs LNG River Orashi and LR1 BW Lena prove good energy management combined with sound technical expertise and a can-do attitude can transform the good to the best Editorial Publisher For further information, BW Group please contact: Responsible Editor BW Maritime Pte Ltd Nick Fell 10 Pasir Panjang Road #18-01 Mapletree Business City Managing Editor Singapore 117438 Adlena Wong + 65 6337 2133 [email protected] Editorial Team Arathi Menon BW Gas AS Kate Langstrom Professor Kohts vei 5, 1366 Lysaker P.O. Box 443 Contributions From 1327 Lysaker, Norway Alasdair M. Wallace + 47 6721 1600 Anders Bohm [email protected] Ashish Bagchi Bill Hatch BW Offshore Norway AS Bo Sheng Wong Drammensveien 149 Cathinka Fornebo Mellem P.O. Box 33 Skøyen Christina Chu 0212 Oslo, Norway Elin Beate Saltkjel + 47 2313 0000 Erle Kristen Wagle [email protected] Evelyn Goh Helge Drange BW LPG Pte Ltd Jan Ivar Teien 10 Pasir Panjang Road #17-02 Joshua Lin Mapletree Business City Joyce Ho Singapore 117438 Kristle Koh + 65 6705 5588 Miriam V. Basco [email protected] Mukesh Sharan Synnøve Skrivlien Venås Green Marine Capital Vibhas Garg 10 Pasir Panjang Road, #17-02 Zhihui Seah Singapore 117438 +65 6705 5588 Design & Production Lancer Design Pte Ltd WorldHorizon Contents 01/2015 04 CHAIRMAN’S MESSAGE 22 SEVEN HEAVEN 23 SAFER STRAITS BW LPG secures financing for seven of its Working together with the Maritime and VLGC newbuildings Port Authority of Singapore and industry partners, BW contributes to strengthening 26 NEW LEASE OF LIFE safety in the Straits of Singapore BW Offshore’s FPSO Abo contract with Nigerian Agip Exploration extended 28 EAT YOUR GREENS, SAVE THE ENVIRONMENT The Oslo office organised vegetarian week as part of ongoing efforts to reduce our impact on the environment 08 GLOBAL BW 08 THREE’S A CHARM BW LPG names three VLGC newbuildings 16 in Ulsan IN THE SPOTLIGHT 10 SAVING WASTE 16 OUT OF AFRICA Terragon’s waste management solutions Marco Beenen, Senior Vice President, Fleet get a nod from Green Marine Capital (West Africa) gets all fired up when he talks FPSO 18 GETTING UNDERWAY AT BW LPG 06 Stephen Harper’s maritime past has FEATURE eased him in to a great role as BW LPG’s 09 BW GROUP FLEET General Counsel 06 MEET CARSTEN MORTENSEN BW’s new CEO is the man-of-the-moment, poised to steer the Group to a great future 20 TECH THAT PAYS OFF 30 AROUND THE WORLD BW Offshore’s new video-conferencing system is pioneering in many ways 12 BEST BOUNCE BACKS LNG River Orashi and LR1 BW Lena prove good energy management combined with 33 BW CRYPTIC CROSSWORD sound technical expertise and a can-do attitude can transform the good to the best 34 SPECIAL THANKS TO... 4 World Horizon Issue 01/2015 Bridging Visions ne of our guiding principles is too far from what made them successful. “Always trying to do better”. This On this 60th anniversary of the year that idea of being ready to change Y.K. Pao founded World-Wide Shipping Oand improve connects back (and coincidentally 80 years after Sigval to our founder Y.K. Pao, who built the Bergesen started his company), it is timely world’s largest shipping fleet from scratch, to ask what needs to change, and what downsized during the shipping crisis of should stay the same? the early 1980s, and diversified into new business areas before rebuilding the fleet Fortunately this has never required again in the late 1980s. One of the major too much soul-searching in BW. We Korean shipyards summarises the same are clear that we need to make concept succinctly: “No change, no future”. constant changes in our business activities – what ships we buy and Observing the global environment, we sell, how we finance the business, find ourselves in uncharted waters. how we manage fuel consumption — Extraordinary stimulus measures, starting in while staying fully committed to our core the US and extending to China, Japan and purpose and our values. now Europe, have resulted in extraordinary liquidity and negative interest rates in In our recent engagement some countries. We are also in a world survey, the two highest of unprecedented visibility, where almost scoring elements in the every action at individual and corporate company — with over level is recorded and can be commented 90% rating — were on. Combined with the technological “goals and objectives” progress of the past decade, this has and “values”. Our team enabled companies to grow in just a few years to be worth tens of billions of dollars, and caused seemingly invincible sector leaders to be overtaken in a heartbeat. No change, no future. There is a paradox here. Just as history is littered with cases of companies that failed to change with the times — Kodak being one of the most cited examples — there are also plenty of examples of companies that failed because they did change their Photography by business model and ended up straying Thies Raetzke (raetzke.com) World Horizon Issue 01/2015 5 members believe in our purpose, and are a heavy heart and great sadness that we have appointed new CEOs for BW LPG engaged with the values. The theme with learnt of the accident on the Cidade de Sao and our growing subsidiary BW Pacific. As the highest outperformance compared to Mateus FPSO that resulted in significant these latter changes will only happen later the Global High Performing Organisations loss of life. Whatever we can say about in the year, I will come back to them in a benchmark was “BW is doing a good building the business pales in comparison subsequent edition of World Horizon. job of moving quickly from idea to to this overriding objective — to ensure implementation”. When opportunities our colleagues return home safely. On On the topic of leadership, present themselves, we don’t hesitate to this critical measure, we failed. I ask all and given our strong presence in move. It should be mentioned that some our team members ashore and at sea to Singapore, we should acknowledge of our team members felt that the pace of redouble efforts to ensure that we look out the passing of one of the great leaders change was rather fast, and after buying for hazards and look after one other. Safety of the 20th century, Lee Kuan Yew. and contracting over 60 ships in the space is not a concept in a manual or on a poster His achievement was extraordinary - a of 18 months, it’s hard to argue with that. or in a training session – it is at the heart of man of conviction whose combination But no change, no future. every activity we undertake. Our hearts go of determination, adaptability, and out to the families of the nine men we lost. strong values serves as an example to Being very rigid on values whilst being us all. Our sympathies to all our fast and adaptable in the business is not Although nothing can change what colleagues from Singapore. contradictory. Values are the non-negotiable happened, the BW Offshore team’s principles that we all live by in BW, response to the accident, led by Carl BW reaches this anniversary year in whatever position one is in. “Delivering Arnet, was exemplary. Colleagues worked good shape, with strong purpose and on our promises” and “always trying to do day and night to look after the families, values, and with a team that is extremely better” are equally valid whether we are to coordinate the response efforts, and capable — not just in running the business, buying ships or selling them, whether we to keep stakeholders informed. We are but in adapting to change. With many are expanding in refined oil or crude oil. very grateful to Petrobras and the local uncertainties in the world, this is a special Our prudent, long-term approach to the authorities for their support. combination of strengths that combines our business — ingrained in the corporate DNA deep heritage with a modern approach to by our first and second Chairmen — does This issue covers a wide range of topics conducting business. I wish all colleagues not prevent us from changing our financing from new ships to environmental initiatives. good courage to meet the challenges model to broaden our sources of funding. We have an interview with our new ahead. Above all, please stay safe. ‘Acting for the Future’ means that we Group CEO, Carsten Mortensen, to whom I adapt to the world around us to ensure would like to extend a warm welcome on we can sustain the business, not just in behalf of the entire BW team around the economic terms and in response to rapidly world. We are looking forward to having changing oil prices, but also in terms of the his experience and energy to help guide environment and other important measures. the company through the aforementioned uncharted waters. As part of further Sincerely, On the subject of things that matter to us, management strengthening, Nick Gleeson Andreas Sohmen-Pao safety is at the top of the list. It was with will return to the Group as CFO and we Chairman 6 Feature World Horizon Issue 01/2015 Meet Carsten Mortensen BW’s new CEO is the man-of-the-moment, poised to steer the Group to a great future World Horizon Issue 01/2015 Feature 7 “BW is already a well- oiled machine with a unique history and unbelievable talent—I don’t think I could ask for a better starting point.” Adlena Wong [AW] (for World Horizon): I’m a good listener, am empathetic and D/S Norden, and to the way I live my life.