Download - The Norwegian FPSO Cluster
THE CLUSTER CHARACTERISTICS AND COMPETITIVENESS OF THE NORWEGIAN FPSO INDUSTRY - COMPETITIVE FOR THE FUTURE?
GRA 6829 Strategy for Industrial Competitiveness 2010
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Torleiv OpsalNicolai A. Kirkeng
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
What is an FPSOThe emergence and current position of the industry
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal
Agenda• Introduction– What is an FPSO– The emergence and current position of the industry
• Cluster and national competitiveness– National diamond analysis– Challenges for the cluster
• Recommendations– For the industry– For the government
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INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
What is an FPSOThe emergence and current position of the industry
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal
What is an FPSOFloating Production, Storage and Offloading unit
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Accommodation, central control and
helideck
Process and utilities e.g. separation train, gas compression, power
generation
Hull & marine utilities e.g. cargo,
ballast,boilers, propulsion
Turret and fluid/control transfer swivel
Moorings and risers
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
What is an FPSOThe emergence and current position of the industry
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal
• Emerged from two traditionally strong industries
• Unique international position
– 10 of 28 international actors are Norwegian
– No other country has similar agglomeration
• More national than regional agglomeration
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In the intersection of shipping and offshore
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INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
What is an FPSOThe emergence and current position of the industry
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 5
Trondheim:- R&D- Education
Oslo:- Maritime operations- Ship owners- Financial
Arendal area:- R&D- Ship Equipment
Stavanger area:- Oil & Gas- Offshore
The industry is spread around the country
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 6
The national diamondFirm strategy, structure
and rivalry
Factor conditions
Related and supporting industries
Demand conditions
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 7
The national diamond
• Specialized skills• Available capital• Marintek and NODE
Firm strategy, structure and rivalry
Factor conditions
Related and supporting industries
Demand conditions
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 8
The national diamond
• Specialized skills• Available capital• Marintek and NODE
• Global demand• Demanding conditions• Strict regulatory
framework
Firm strategy, structure and rivalry
Factor conditions
Related and supporting industries
Demand conditions
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 9
The national diamond
• Oil & Gas• Shipping• Offshore• Ship equipment
• Specialized skills• Available capital• Marintek and NODE
• Global demand• Demanding conditions• Strict regulatory
framework
Firm strategy, structure and rivalry
Factor conditions
Related and supporting industries
Demand conditions
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 10
The national diamond
• Numerous actors• High rivalry• Heterogeneity
• Oil & Gas• Shipping• Offshore• Ship equipment
• Specialized skills• Available capital• Marintek and NODE
• Global demand• Demanding conditions• Strict regulatory
framework
Firm strategy, structure and rivalry
Factor conditions
Related and supporting industries
Demand conditions
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 11
The national diamond
• Numerous actors• High rivalry• Heterogeneity
• Oil & Gas• Shipping• Offshore• Ship equipment
• Specialized skills• Available capital• Marintek and NODE
• Global demand• Demanding conditions• Strict regulatory
framework
Firm strategy, structure and rivalry
Factor conditions
Related and supporting industries
Demand conditions
Government
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 12
Challenges
• FPSO projects are risky – smaller actors lack sufficient financial strength• Pressured margins• Low profitability
Lack of competitive scale
• High cost labor• Focus on knowledge intensive and core activities
Keeping the right activities in Norway
• Qualified engineers• Workers with operational experience
Future access to qualified labor
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 13
Challenges
• FPSO projects are risky – smaller actors lack sufficient financial strength• Pressured margins• Low profitability
Lack of competitive scale
• High cost labor• Focus on knowledge intensive and core activities
Keeping the right activities in Norway
• Qualified engineers• Workers with operational experience
Future access to qualified labor
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 14
Challenges
• FPSO projects are risky – smaller actors lack sufficient financial strength• Pressured margins• Low profitability
Lack of competitive scale
• High cost labor• Focus on knowledge intensive and core activities
Keeping the right activities in Norway
• Qualified engineers• Workers with operational experience
Future access to qualified labor
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
National diamond analysisChallenges for the cluster
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 15
Challenges (2)
• Changing policies• FPSOs not included in NIS tax beneifts
Political instability
•No recent major oil findings• Restrictions Lofoten and Vesterålen• Activity push innovation and new technology
Decreasing activity on the Norwegian continental shelf
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
For the industryFor the government
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 16
Industry recommendations
A strengthened and competitive
Norwegian FPSO cluster – With a bright
future
Challenges
Lack of competitive size
Keeping key activities
Future access to labor
Political instability
Decreased activity in the home market
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
For the industryFor the government
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 17
Industry recommendations
A strengthened and competitive
Norwegian FPSO cluster – With a bright
future
Industry consolidation
- Increase size & financial strength
- Increased bargaining power
- Still maintain cluster dynamics
Establish a cluster initiative
- Cluster promotion
- Address common issues
- Cooperate with government, universities and industry actors
Challenges
Lack of competitive size
Keeping key activities
Future access to labor
Political instability
Decreased activity in the home market
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
For the industryFor the government
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal 18
Governmental recommendations
A strengthened and competitive
Norwegian FPSO cluster – With a bright
future
Secure long term policy stability
- Consensus driven decisions- Cooperation with the industry
Open oil & gas activity in the North
- Activity crucial to innovativeness- Recent report degrading environmental hazard
Invest in cluster related knowledge
- Strengthen scientific infrastructure- Joint effort from the government, industry and universities
Challenges
Lack of competitive size
Keeping key activities
Future access to labor
Political instability
Decreased activity in the home market
INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
For the industryFor the government
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal19
Conclusion
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INTRODUCTIONCLUSTER AND NATIONAL COMPETITIVENESS
RECOMMENDATIONS
For the industryFor the government
GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & Torleiv Opsal20
Conclusion
By implementing the suggested recommendations the FPSO cluster might develop into a stronger FPSO hub for the future and prove to be an important industry in the exciting intersection of
the oil & gas, offshore and shipping industry.
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Thanks for your attention!
Q&A