How the Norwegian Service Industry was developed
-Competence and Capacity
Sjur E Bratland
Regional Director, INTSOK, Norway
Willy H Olsen www.intsok.com

1. What were the instruments used?
Policies, legislation and external factors
2. The role of people, technology, research and development
3. Where is Norway today?
Willy H Olsen

Legislation approved before oil was found
1.
The petroleum resources shall be managed with a long term perspective
2.
The whole society shall benefit from the resources
3.
Resources shall be managed to secure revenues to the country
4.
Oil and gas shall contribute to welfare, employment, improved environment and industrial development
5.
Take care of regional interests
We wanted to develop a oil and gas service industry
Source: The Petroleum Law of 1965 – paragraph 1A

Policies were adapted to national traditions
Sharing of technology and creating a local working environment
• The government worked deliberately to Norwegianize the oil sector
• US and French domination in the first decade
• Labour relations were built on strong trade union influence
• Worked in favour of domestic firms relative to foreign firms
– But did not jeopardize economic efficiency
– Ownership no issue
• Environmental friendly – take care of the resources
• The Ministry monitored the tendering process and bid evaluations
• Norwegian based firm got early access to all tendering information
Willy H Olsen

1.
Harsh environment - taking care of the environment
2.
Deep water
3.
Technological challenging
4.
Expensive labor cost
1.
Innovative an risk willingness
2.
Established yards could convert to oil and gas industry
3.
Willing to use the Norwegian continental shelf as a test bench
4.
Deep fjords allowed building of concrete substructures
Source:

Cornerstone in developing the Norwegian Oil industry
Predictability – Risk reducing
BP production mill b/d oe
Source: BP
• Established a competitive and transparent environment
– Concession rounds every year, based on nomination from oil companies
– Ownership not important
– Today 60 active oil companies – many independents
– A lot of the service industry are owned by non
Norwegian companies
• External factors worked in the favour of Norway
– IOCs were looking for new opportunities after the nationalisation
– Quite willing to accept tough terms
• Transfer of knowledge and experience to
Norwegian firms
• Stick and the carrot used
Willy H Olsen

Taxpaying oil workers in every community
• But clusters established
Maritime
R&D
Willy H Olsen
Operators
Drilling
Subsea

Have to follow EU rules and regulations
• Norway joined the European Economic Area
• Had to introduce EU regulations
• The legislation from 1972 on in-country value had to be scrapped
• Legislation is based on competition as the key principle
– Predictability, transparency, traceability
– Prohibited to discriminate on the basis of nationality and to use standards and specifications to obstruct competition
Infant industry argument no longer applicable
Willy H Olsen

The government stimulated technology partnership
Willy H Olsen
Universities and
R&D centers

The tax system made fields into laboratories
Troll Oil Kristin Tyrihans Tordis IOR
Tapping a thin oil layer
Drilling systems
Advanced software
High pressure
High temperature
Advanced wells
Record long pipeline heating
Subsea raw seawater injection
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Subsea separation boosting and injection system

Government top priority - EOR
Revitalizing and extending the life of the Ekofisk field
The initial plan
• The Ekofisk field, Norway’s first oil field, began production in 1971
• Was hoping for 20% recovery
• ConocoPhillips is now aiming for 50%
• Field life extended to 2050
• Norway’s average recovery factor is now close to 50%
• The government aim is 55%
• Huge R&D program to succeed
• 1%-point increase in recovery represents $35 billion in additional revenues to Norway
Willy H Olsen

Willy H Olsen
Statoil is the dominating player - operating 80% of new projects
The CEO will always be under pressure to add in country value

INTSOK was a new government initiative
Willy H Olsen

180
160
140
120
100
80
60
40
20
0
Source: INTSOK Annual Market Report - Rystad Energy (2011)

Catalogue presenting Norway’s world class capabilities
Solutions for cleaner production
Capabilities in the Norwegian oil and gas industry for reducing energy consumption and minimizing discharges and emissions

Catalogue presenting industry’s IOR capabilities
Solutions for increased recovery
Capabilities in the
Norwegian oil and gas industry for solutions that can increase oil recovery

Rogaland Training & Education Centre
“- Local skilled workers are the fundament for local content”
Certified provider to the Oil & Gas sector in
Norway and Denmark
Achilles ID # 26088

Regional development
Colleges
Companies
RKK

Training and continuing education for the offshore and mechanical industry:
Subject areas:
RKK
Oil & Gas
 Rules & regulations
 Health, environment and safety
 Economics and management
 Petroleum technology
 Drilling and well technology
 Automation
 Electro and electronics
 Heating, ventilation and sanitation
 Valve technology
 Mechanical processes
 Pressure testing
Certified provider to the Oil & Gas sector in
Norway and Denmark
Achilles ID # 26088  Hydraulics and pneumatics
 Scaffolding and rigging
 Surface treatment
 Welding and plating
 Flanges and gaskets
 Isolation and casing
 Chemistry and processes
 Materials administration
 Sub sea technology
 Instrumentation
 Safety and emergency preparedness
 Navigation

Vision
Create a top class Kazakhstani contracting company through technology transfer and training of employees.
Execution of Oil & Gas projects with the maximum possible workload ‘inside’ Kazakhstan
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• Kvaerner Caspian Group is jointly owned by KGNT and
Kvaerner AS
• This is a true Kazakh company - Shareholding and Board representation are equal
• Initial activities are targeted towards fabrication and engineering
• Kvaerner Caspian aims to be the first full fledged EPC offshore contractor in the Caspian Region
© Kvaerner 2011
10.04.2020

• Kvaerner Caspian’s business model is to deliver Offshore EPC
Contracts. This is achieved through the following capabilities:
• Fabrication – Kvaerner Caspian currently building a new offshore module fabrication yard in Aktau.
• Engineering – Kvaerner Caspian have engineering offices in Atyrau and Aktau.
• Training – Kvaerner Caspian is the largest shareholder in the Aktau
Training Centre (ATC) - be closely associated with the Aktau fabrication yard
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© Kvaerner 2011
10.04.2020

Looking forward to the B2B meetings