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Get ready for the

New OilRealityTwo faces of a harsh market: Maersk Guardian is stacked in Frederikshavn, while outstanding performance secures Maersk Discoverer a three-year contract extension with BP in Egypt.

Newsletter 06 Learning from the Airlines

08 Preserving the assets for better days

16 Putting Maersk Endurer to rest

December 2015 | #2

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g Maersk Discoverertakes the lead in EgyptMaersk Drilling has been awarded a three-year contract exten-sion for the ultra-deepwater semi-submersible Maersk Discoverer with oil major BP.

This means that Maersk Discoverer will be working offshore Egypt until August 2019. In a difficult marketplace with very few fixtures, this contract extension is a remarkable achievement which Unit Director Thomas Falk attributes to the successful collaboration between BP and Maersk Drilling and the impressive operational results achieved with the Atoll well and the West Nile Delta drilling programme.

Maersk Viking’s first year

Since the start of operations on 6 July last year, Maersk Viking has had an operational uptime of no less than 99%, and is currently one of the front-runners when it comes to Maersk Drilling’s consolidated rig KPI score. Maersk Viking started operations in the Gulf of Mexico last year on ExxonMobil’s Julia project. Maersk Viking and her crew have been delivering an outstanding performance ever since.

COST SAVINGS:

Full throttle from the rig teams

The Profit Optimisation Programme is well on track and is looking to exceed the expectations set for 2015 by 30%. So far in 2015 the lion’s share of effective cost reductions stems from operational savings. There are many contributing factors to this achievement. The new offshore compensation scheme is the single highest contributor so far, yet it is the sum of many initiatives and efforts – offshore as well as onshore – which brings the savings toll as high as this. “The recipe has been to turn every stone – both in relation to what we do and how we do it. There have been some good central initiatives such as riser management, NDT (Non Destructive Testing) reduction and a number of procurement initiatives. In addition to this I am proud to see the all hands on deck mindset in the rig teams challenging every dollar we spend”, explains Claus Bachmann, Deepwater Asset Manager. Other savings come from sourcing improvement towards suppliers, insurance optimisation, changed travel and training policies, HQ refit, fewer and less costly overhead projects and reduced use of external consultants.

Shorter skirts for the GiantStrong forces had managed to twist and bend some of the inner and outer skirts – ‘spudcans’ in oil-industry lingo – on one of Mærsk Giant’s ‘feet’.

“During a routine inspection of the two aft spudcans during the voyage from Norway to Nini in the Danish sector, we discovered that we were unable to empty the water out of one of the spudcans,” explains Harsh Environment jack-up Asset Manager Per Gobel.

After a yard stay near Rotterdam, Mærsk Giant is now on assignment in the Danish sector of the North Sea, where she is working for Danish energy utility DONG Energy on the Nini and Siri fields for 150 days .

2 Maersk Drilling Newsletter 02·2015

QUARTERLY RECAP

Claus V. Hemmingsen, CEO of Maersk Drilling, Member of the APMM Group Executive Board

In November, Maersk Drilling announced the third quarter result for 2015. Strong safety and operational performance and good progress on our profit optimi

sation programme are the drivers behind a satisfactory result. Achievements that we can all be proud off.

For a long time the many, long contracts we signed in a booming market, when the oil price was high, have enabled us to maintain a satisfactory profitability.

However, the new oil reality with oversupply of rigs and a very low demand is starting to show – also for Maersk Drilling. We have 11 rigs that either need to be renegotiated in 2016 by extensions, as we cannot expect options to be declared, or need to have new contracts secured. Under the current conditions we must expect increased idle time due to the market downturn.

The only way to navigate the challenging market is to focus on our operational excellence, watch our costs and keep our customers satisfied. This means high uptime and zero incidents. We cannot control the market, but we can control how we operate. We need to stay calm and finish strong. We have seen excellent performance so far in 2015, and we need to sustain this. Then we will ensure a foundation for our business that paves the way for new contracts and employment for our rigs in this fierce competition.

In this edition, we have packed the Newsletter with stories that focus on some of the challenges the new oil reality throws at us. We followed Maersk Endurer on her last journey for recycling. Furthermore, we took an indepth look at how yard stays can be optimised and thereby deliver a solid contribution to our cost efficiency programme and we investigated how the stacking of Maersk Guardian was planned and implemented. Finally, you can find out what a “fairing” is.

Enjoy your reading, and stay focused, stay safe!

FOCUS ON REMAINING COMPETITIVE

Social media

We have yet again received a lot of great stories and pictures. Thanks to all of our Maersk Drilling employees and followers, across our social media channels for contributing. Remember to share your offshore moments with the rest of us, by simply tagging them #maerskdrilling on Instagram or by sending a personal message on Facebook.

Follow us on social media:facebook.com/maerskdrilling

Instagram.com/maerskdrilling

linkedin.com/company/maerskdrilling

twitter.com/maerskdrilling

A captain signing off. Enjoy the retirement Peter Mason and thank you for all the good years. #MaerskValiant #Offshore #SigningOff #Retirement #ThanksForAll

Thunderstorm crossing paths with Maersk Voyager. #MaerskVoyager #Thunder-storm #Drillship #Ghana #OffshoreLife

Crewmember heading for Maersk Integrator. #MaerskIntegrator #OffshoreLife #NorthSea #SunnyDay #Crew

Video timelapse of Maersk Guardian arriving in Frederikshavn, Denmark. #MaerskGuardian #BackInDenmark #Frederikshavn #OffshoreLife

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3Maersk Drilling Newsletter 02·2015

WORDS FROM THE CEO

Maersk Intrepid is exploring the promising Martin Linge oil field, 42 kilometres west of the Norwegian coast.

Milestone Reached in the North Sea

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A major milestone has been reached with the clean-up and testing of the first three Martin Linge oil wells in

the North Sea. Between August 2014 and September

2018, Maersk Intrepid is on contract with oil major Total. Intrepid is assigned to explore the vast Martin Linge field in the Norwegian part of the North Sea – an oil and gas discovery that was made in 1975.

The clean-up of the wells represents the first production testing of the Frigg reservoir, which is part of the Martin Linge field. It will give an indication of the potential production rate of the wells when the field comes on stream in 2018.

A clean-up means the activity to flow the well. This is achieved by removing any drill-ing fluid left in the hole and to have the well column filled by pure crude oil which will be heading back to the surface. The well is flowed through a complex well test system consisting of a choke manifold and separa-tors. The oil and gas produced is lead to the rig burner booms in order to determine the flow potential of the well.

The three oil wells have long horizon-tal drains into the reservoir. The Frigg oil reservoir is situated 1750 metres below sea level, and the longest horizontal drain is at a depth of almost 2000 metres.

The Martin Linge field in the North Sea is situated at a water depth of 115 metres. The field is a highly complex, high-pressure area, consisting of an oil reservoir located at 2000 metres depth and a sizeable gas reservoir at 4000 metres depth.

By Nicolai Ostergaard


In the quest for fewer and more ef-ficient yard stays, Maersk Drilling is looking to the airline industry

for inspiration. “Pushed back by fierce competi-

tion, the legacy carriers had to rethink their maintenance programs quite radically. They’ve achieved some spectacular results, and they’ve man-aged to do so without compromising safety. I think we can learn a lot from what they’ve done,” says Head of Fleet Maintenance Mangement, Deep & Mid Water, Morten Moller Pedersen.

In the deep-water segment, he is aiming for a future that features a much-reduced need for yard stays even for the most sophisticated float-ers. And the current model, which involves comprehensive five-yearly overhauls, is definitely on its way out and into the history books.

Instead, the department will establish a rolling maintenance schedule for the Deep & Mid Water fleet. In short: there will be a smooth flow of maintenance work during the

year, some of which will involve some limited but planned interruptions in operations.

Go Away!Program manager Preben Bostrom is in charge of the project. He is trying to figure out the options for reducing the most comprehensive and most expensive yard stays as much as pos-sible without compromising safety performance and uptime. With that in mind, it should be easy to guess what the name of the project – Project Go-Away! – refers to.

“In the wake of falling oil prices, we simply cannot afford the usual way of doing things. To be blunt, we want those yard stays to go away.”

Traditionally, a rig is taken out of service every five years for a major overhaul. Such an overhaul can in-volve a workforce of up to 800 people who actually disassemble the entire rig, replace a huge number of parts, and then put the complete structure together again.

“Naturally, this costs a lot of money, and the rig sits idle for several months. We want to do away with this approach,” says Morten Moller Pedersen.

But what have the airline compa-nies actually achieved?

In the old days, an aircraft was routinely taken out of service for sev-eral months for a complete overhaul.

It doesn’t work that way any more. Today, an aircraft typically follows

a so-called rolling maintenance pro-gramme in which recurring overhauls and the ongoing replacement of key components happen in lesser chunks. Typically, the job is done at night, and the aircraft is ready for takeoff the next morning.

“The rolling maintenance pro-gramme ensures the best possible use of the equipment, and we’re aiming for the same process here at Maersk Drilling. Both the airline industry and the drilling industry are asset-heavy industries that are characterised by fierce competition,” says Morten.

Learning from the


The replacement of all four cylinders on the port side crane on Mærsk Deliverer was a complex task. Each cylinder weighing up to 13 tons. On the picture, one

of the rigging teams has just removed the last cylinder pin, and they are now

preparing to lower down the cylinder to deck.

How to shorten the most expensive yard stays as much as possible? Perhaps the airline industry can provide part of the answer.

AIRLINES


He admits that the whole idea rep-resents a paradigm shift in a company that is accustomed to regarding the five-yearly overhaul as the chief focus of the maintenance side of things.

But there is no escaping the finan-cial realities.

“We are in dire need of a change of culture. The company needs to rethink its maintenance set-up and align it with the new business environment. It’s as simple as that,” explains Morten.

However, everything exacts its cost. And according to Morten Moller Pedersen, the rolling maintenance programme has both its pros and its cons.

The flip side of the coin revolves around risk-taking.

“The rolling maintenance pro-gramme implies that we need to be less risk-averse and increase our appetite for taking risks.”

What does that mean? “The five-year overhaul enables us to examine every single component. We won’t be able to do that anymore. Therefore, we have to live with the risk that something will break down and will have to be repaired on site. Of course, we’ll do everything we can to maintain the equipment properly.

This doesn’t sound like every unit director’s dream? “On the contrary, we’re going to have to change our procedures if we want to survive in this harsh business environ-ment. This will further empower the Unit Directors and enable them to take greater ownership of the equipment during its entire lifecycle. But I want to stress that the new scheme will demand a huge effort from all the departments in the organization. Planning and execut-ing maintenance work will become an ongoing process, and this will call for much deeper collaboration between our departments so that we can utilise all the strengths and combined knowledge we have in-house.”

Does this really mean that the tradi-tional once-every-five-years overhaul is about to be phased out? “Yes – at least for the most advanced rigs in the fleet, the five-yearly overhaul will be phased out. For our new drillships, we’re planning a period of 10 years before the first quayside overhaul. Until then, we’ll do the prescribed maintenance on-site.”

How much money is the company going to be able to save with the new maintenance scheme?“Our goal is to achieve a cash-flow saving of at least 25 per cent”.

Unit Director: We can reduce the yard stays considerably

Q & A with Peter Dansen, Unit Director, Maersk Viking LLC

9Aren’t you afraid that this enhanced continuous focus

on maintenance issues (instead of leaving these issues until the five-yearly overhaul) will take its toll, for instance in terms of lower efficiency, decreased uptime, significant dis-ruption of daily operations etc.?

@Every change comes with risk. When it is mitigated well, the

risk could drop below our acceptance level. I’m not concerned that looking at maintenance from the perspective of greater efficiency will jeopardize our focus on uptime. Some of our competitors are already avoiding yard stays to a large extent. I’m not worried that doing the maintenance differently will reduce uptime. Actually doing the required maintenance is what matters.

9In your opinion, and from the operational angle, what should

headquarters be aware of in this pro-cess if they want to make sure that this process turns out successfully?

@Everything stands and falls on executing only the required

maintenance. A suitable maintenance system purged of all ‘aboveandbeyond’ maintenance allows you to do more with the same or less people. Big onboard maintenance projects which involve large equipment need to be prepared for properly, so that they can be executed efficiently offshore.

9What do you see as the most significant obstacles in this

process?

@The time required on the critical path to do the maintenance on

some of the equipment. A greater risk of injury, because more outoftheordinary work will be done offshore. A lot of effort is required to ensure the necessary level of competency and spare parts that are going to be needed for conducting outoftheordinary maintenance offshore.

9Isn’t it precisely a nightmare for a Unit Director to become

part of a future where there is an increased level of risk because the five-yearly major overhaul has been cancelled?

@It’s important to understand the added risk so that we can miti

gate it. 60 days in a yard is also costly.

The rolling main tenance program me ensures the best possible use of the equipment, and we’re aiming for the same process here at Maersk Drilling. MORTEN MOLLER PEDERSEN

The Go-Away Project

Maersk Drilling is forced to change the current yard stay setup and mindset in order to succeed in the long run. In five years’ time the company will see a new peak of potential yard stays when the drillships are due for five year overhaul and the semisubs are due for their ten year survey. The impact can be significantly reduced if we think smarter, collaborate across

all departments and work as one team to ensure that we act with Constant Care. The “GoAway” Project aims at improve our long term planning and optimize the 5 year maintenance and overhauls and thereby reduce time spent at a yard stay – or completely eliminating the need to take the rigs to a yard. The goal is to achieve a cashflow saving of at least 25 %.

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Preserving the assets for better daysRig stacking has for more than a decade been a rare phenomenon in the oil industry. With oil prices now at a much lower level than they have been, that is about to change.


When Maersk Guardian was towed into Frederikshavn’s harbour on Sep-tember 21, 2015, it made headlines in the local media: it was the first time the maritime capital of Northern Jutland had had to make space for the stacking of a rig.

But what has happened since then?

Assistant Asset Manager Bram Nabuurs has been in charge of the working group assigned to prepare for the stacking of Maersk Guardian

and carry it out. “Within five days

of arriving in Fred-erikshavn, we were down to our planned manning level of six people,” explains Bram Nabuurs.

The last crew members on Maersk Guardian have now been assigned to pre-serve the equipment aboard the rig. They maintain the critical operational equip-ment and operate it periodically, running the drawworks, top

drive, engines and mud pumps in order to keep the equipment in good condition.

“The crew members are in charge of keeping the rig on a reduced-main-tenance regimen because of the lower operating hours, as well as critically assessing and reducing the tasks on

the maintenance to-do list wherever that’s both possible and appropriate,” says Bram Nabuurs.

More idle days With up to 11 rigs coming off contract in 2016, and in view of a bleak business environment in which rig demand is dropping, here at Maersk Drilling we need to be prepared for the likelihood that not all our rigs will go on a new contract as soon as their old one runs out. This is the message from Head of Global Sales Morten Pilnov.

“It is clear that our rigs are going to experience more idle days in 2016 than we’ve seen in the recent past,” he says.

Maersk Guardian is not the only rig being stacked at the moment.

In Singapore, Maersk Convincer is preparing for what – hopefully – will only be a short period of stacking. To-wards the end of December, Maersk Developer will likely run off contract and will arrive in Houston, where it will be stacked until a new contract is signed.

Prior to a rig running off contract with no new assignment in sight, the relevant department – Asset team, Commercial, Technical Organization and Finance – will come up with a plan for how to stack it most efficient-ly, taking into account the market outlook for the rig in question and its probable next assignment.

Please explain the procedure: does Maersk Drilling automatically send

an idle rig for stacking if it doesn’t get a new contract within a certain time frame? “When a rig runs off contract, we fol-low the process in SIRIUS and consider how likely it is that the rig will get a new contract within a certain span of time. During this process we will typi-cally establish some milestones – in other words, potential contracts that the rig will try to achieve. These are windows of opportunity – a chance to win a new contract. If the process turns out successfully, the rig will get a new contract,” explains Morten Pilnov.

He continues: “If all these possibilities fail, we’ll

start to consider outright stacking. We always begin with so-called utility stacking. This means that the rig is stacked while it is fully functional and ready to leave for a new contract on short notice. So, how far we proceed from idle days to outright stacking depends on the market potential for a new contract in the near future.”

High contract coverageWhat is the most positive thing you can say about our position in this bleak business environment?

“If we compare ourselves with our competitors, we are blessed with relatively high contract coverage for 2016 and 2017. This is immensely significant for us, because it gives us an important foundation for getting through a period of oversupply and very low day rates,” says Morten Pilnov.

It is clear that our rigs are going to expe rience more idle days in 2016 than we’ve seen in the recent past.MORTEN PILNOV, HEAD OF GLOBAL SALES

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“Of course, everyone would like the day rates to return to where they used to be in the good old days, but that’s not going to happen in the short or medium term. This industry has been in an upturn for so many years that many people have forgotten a basic fact: this is a cyclical business. We’ve just been in an upturn for many years. Now we have to prepare for a couple of difficult years before things start to improve.”

Lukewarm stackingIn Frederikshavn, the remaining crew members of Maersk Guardian are not living on the rig any more, but staying at a local hotel. This allows the rig to be connected to shore-based power, bring-ing its fuel consumption down to a bare minimum.

According to Bram Nabuurs, the remaining crew is very proactive and finds its motivation in reducing the cost of the daily operations on the rig – for instance, by using the waste heat from the engines to warm the interior of the rig when the engines are running.

Then there is the question concern-ing the mode of stacking. Should we be thinking in terms of cold or warm stack-ing in the case of Maersk Guardian?

“We tend to call it lukewarm stack-ing. We maintain minimum manning without jeopardizing the rig’s ability to get back into operation swiftly when she gets a new contract,” explains Bram.

He continues: “This lukewarm mode of stacking

means we can bring the rig back to full operational mode within eight weeks once we get the necessary resources.”

Quick returnHe adds that the process of making the Maersk Guardian fully operational does not depend solely on the technical state of the rig. It also relies heavily on the crew being available, as the Guardian’s crew members are scattered all around the world. Most of them are working on other rigs in the company, though some have inevitably had to leave the company.

So how long is it viable to keep the Maersk Guardian in a lukewarm stacking mode? “This mode of stacking will enable us to react swiftly to any market development at a relatively low cost to the company. This pushes the discussion about the viability of stacking our rigs in the direc-tion it needs to go: what opportunities do our customers have, and how do we jointly ensure that these opportunities are turned into awarded contracts.”

We tend to call it lukewarm stacking. We maintain minimum manning without jeopardizing the rig’s ability to get back into operation swiftly when she gets a new contract.BRAM NABUURS, ASSISTANT ASSET MANAGER


What are fairings? Fairings are structures that are used to sup-press and reduce drag- and vortex-induced vibration (VIV) around a drilling riser.

Where are fairings being used? They are being used all over the offshore-sector where strong currents are posing

a risk to the stability of the drilling riser. As such it is not a new technology, but it becomes more and more advanced.

What does a fairing protect against? There are strong currents in the waters off, for instance, Africa and South Ameri-ca. When the riser pipe is placed in a

strong current, it may begin to vibrate. Fairings are placed on the pipe from near the surface down to a depth determined by calculation.

How does a fairing work? A fairing is basically a wing-shaped plastic element or set of elements which is at-

FAIRINGSFighting strong currents with

WHAT IS IT?

Fairing

Riser pipe

Fairings are attached to the drilling riser to suppress vortex induced vibrations of the riser.


tached to the outside of the drilling riser, piece by piece. The fairing system consists of two main components: the fairing and the load-bearing collars. These components are installed on the drilling riser over the buoyancy modules, and are removable. Fairings are designed to freely weathervane around the riser string, which makes them

self-adjusting in response to any change in the direction of the current.

What would happen if the fairings were not installed? The inability to suppress VIV may cause increased fatigue damage to particular riser joints and the wellhead, and will lead to

increased riser drag forces being present in strong-current environments. Under certain conditions, the absence of fairings could lead to reduced uptime and require higher thruster utilization, thereby potentially reducing the profitability of the rig.

When the riser pipe is placed in a strong current, it may

begin to vibrate. Fairings are placed on the pipe from near the surface down to a depth determined by calculation (left side of illustration). After a certain depth, currents drop to one knot or less – a safe speed.

STRONG OCEAN CURRENT

The fairings are attached to the

outside of the drilling riser,

piece by piece. Fairings are

designed to freely weathervane

around the riser string.

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Revenue NOPAT0

200

400

600

800

525

646

192 184

Q3 2014 Q3 2015

EBIT-margin ROIC0%

10%

20%

30%

40%

50%

44,0%

36,8%

10,7%9,0%

Q3 2014 Q3 2015

2,0

1,5

1,0

0,5

0,0RoY 2015 2016 2017 2018 2019+

(USD 471m) due to more rigs in operation, high forward contract coverage as well as impact from the initiated cost reduction and efficiency enhancement programme, which in Q3 2015 delivered a saving of more than 10% compared to Q3 2014.

STRONG REVENUE BACKLOG

Revenue backlog by year, end Q3 2015, USDbn Underlying profit by activity

MOST UNITS FACING CHALLENGES IN Q3

MaerskLine

700

600

500

400

300

200

100

0

Q3 2014 Q3 2015

MaerskOil

APMTerminals

MaerskDrilling

APMShippingServices

685

243224

32

201175

118

172

7944

INCREASING REVENUE

Financial performance, USDm

ROIC BELOW Q3 2014

Financial performance, percentage

Focusing on remaining competitive despite the downturnMaersk Drilling increased the underlying profit by 46 percent to USD 172 million and is focusing on remaining competitive despite the downturn by reducing the cost base and securing a strong contract backlog.

Maersk Drilling maintains the expectation of a sig-nificantly higher underlying result for 2015 than in 2014

Financial highlights (USDm)

FIGHTING BACK IN A BLEAK MARKET


INTERIM RESULT Q3 2015

Maersk ResilientCUSTOMER:

Maersk Oil

COUNTRY:

Denmark

CONTRACT VALUE:

110m USD

DURATION:

3 years

Mærsk innovatorCUSTOMER:

ConocoPhilips

COUNTRY:

Norway

CONTRACT VALUE:

142m USD

DURATION:

16 months

Maersk ResolveCUSTOMER:

DONG Energy

COUNTRY:

Denmark

CONTRACT VALUE:

28m USD

DURATION:

250 days

Mærsk GiantCUSTOMER:

DONG Energy

COUNTRY:

Denmark

CONTRACT VALUE:

16m USD

DURATION:

150 days

Heydar AliyevCUSTOMER:

BP

COUNTRY:

Azerbaijan

CONTRACT VALUE:

523m USD

DURATION:

5 years

Maersk DiscovererCUSTOMER:

BP

COUNTRY:

Egypt

CONTRACT VALUE:

Undisclosed

DURATION:

3 years

A Historic Level of Scrapping Activity

1980

1981

1982

1983

1984

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0

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Rigs scrapped Oil prise (USD/bbl)

$120

$100

$80

$60

$40

$20

$0

Jack-ups Floaters Oil price (USD/bbl)

Global oil market downturn continuesThe global oil market continues to struggle under significant structural chal-lenges. Oil is still trading around $50 per barrel, and oversupply in the oil market is expected to continue until late 2016 or even beyond. Oil companies are focused on reducing all types of costs, including capital spending on offshore drilling. Consequently, global offshore drilling rig utilization levels and day rates have plunged precipitously.

Offshore drillers responding by scrappingAs the market is expected to continue to deteriorate, offshore drillers are re-sponding with the highest level of scrapping activity in history. Since mid-2014, offshore drillers have retired 42 floaters and 13 jack-ups. The majority of retire-ments during this time period have been over 30 years old.

Scrapping cycle is just beginningCurrently, a significant part of the global rig fleet remains over 30 years old, in-cluding 42% of jack-ups and 26% of floaters. With continued downward pressure on oil prices, capital spending, day rates, and utilization levels, in addition to the high, still-to-be-delivered number of newbuild orders, further scrapping activity is required to reduce the large number of older drilling rigs still operating in the market.

Rebalancing needs more than scrapping aloneWhile an accelerated scrapping cycle over the next couple years will help bring balance to the market over the long-run, it will not solve the complex pressures of the short-term environment and the continued rig supply-demand imbalance.

The lower-for-longer oil price environment means that returning the market to balance will require an unprecedented level of industry discipline with respect to both cost & efficiency initiatives as well as fleet size, age, and composition.

Global Scrapping Cycles (1980-2015YTD)

Source: IHS Petrodata; Thomson Reuters; BP Statistical Review of World Energy 2013

By Timothy Shoup , Strategy and stakeholder Relations

Rebalancing the global rig market will require the highest level of rig scrapping activity in history.

NEW CONTRACTS WORTH USD 1,1BN DURING Q3 2015


MARKET INSIDE

DECOMMISSIONING

Rig manager Rafal Iwanowski’s job description suddenly took a 180-degree turn, when he was asked to prepare Maersk Endurer for decommissioning. It was a case of learning by doing.


Photo: Nikolaj Thaning Rentzmann

CHALLENGEAn unexpected


One consequence of falling oil prices is that decommission-ing has become a new reality

in the oil industry.Rafal Iwanowski was among the

first to experience the precipitous change from ‘the good old days’ to today’s ultra-harsh oil reality.

Two years after starting a new assignment as rig manager on Maersk Endurer, overnight Rafal Iwanowski found himself dealing with an unexpected task: to prepare the rig for decommissioning!

“My job description suddenly took a 180-degree turn,” says Rafal.

“In 2014 I was in charge of the challenging process of turning Mae-rsk Endurer into a highly effective oil rig. In 2015 the aim was quite the opposite: to close it down and prepare it for de-commissioning.”

“It was a pe-culiar situation. As the new rig manager on Mae-rsk Endurer, I had fought hard to improve the rig’s performance. Now, suddenly, I was in charge of preparing the rig for recycling,” Rafal explains.

In good shapeRafal Iwanowski and his team had managed to get the Endurer into good shape dur-ing 2013/2014, following years of minimum-level maintenance prior to the rig’s arrival off Cameroon, plus a period of poor performance: under his leadership, the annual overall KPI score leapt from 13 per cent in 2013 to well above 70 per cent in 2014.

But now Rafal Iwanowski found himself rapidly confronted with unprecedented challenges.

In the history of Maersk Drilling,

the company had never sent a rig or drillship to the scrapyard.

“So naturally there was no-one in the organization to call on for the relevant contingency plan. Add in the fact that we were situated in Cameroon, where routine tasks could suddenly turn complicated. It was a case of learning by doing.”

One daunting task was to iden-tify those components which were suitable for reuse or resale.

“Soon we were confronted with multiple challenges. Much to our surprise, we discovered that it was almost impossible to buy contain-ers for the components we wanted to keep. Despite the assistance we had from APM Terminals and

Maersk Line, we were actu-ally only able to buy seven containers out of the nearly 30 units we needed. It was so complicated that we ended up renting the rest, just to bring the pro-cess to an end,” says Rafal.

Heavy CongestionThe next prob-lem cropped up in the harbour of the Douala con-tainer terminal in Cameroon.

The terminal is heavily congested, which meant the team was unable to ship out the containers packed with equipment and spare parts from Endurer.

In fact, some of the equipment is still in Cameroon awaiting a vessel departure that has already been postponed several times.

On top of that, time pressure was an important factor.

Endurer had to bring the valu-able components of the rig onshore

before the arrival of the heavy-lift vessel assigned to take Maersk En-durer on its final voyage. The team had approximately one month to execute the scope of the removal procedures, which was a huge logis-tical task.

Preparing for Nini and Siri“Among the things we’ve kept are the high-pressure valves, fishing and handling equipment, tubulars, and of course the top drive and the two BOP stacks. Overall, we secured equipment worth USD 9m before Endurer left for China,” explains Rafal Iwanowski.

Currently Rafal is the rig manag-er of Mærsk Giant. He is preparing the rig for its next assignment with the Danish energy utility DONG Energy. The rig contract covers 150 days operating on the Nini and Siri fields in the Danish sector of the North Sea.

He does not hesitate when he is asked about the hardest part of the process:

“Some members of the Endurer team had to leave the company as a consequence of the shutdown of Endurer. Employment was found for some of the team members, but unfortunately not for all of them. We had a great team, and we achieved great results in 2013 and 2014. And saying good-bye is never easy. But Endurer is now history.”

In 2014 I was in charge of the challenging pro-cess of turning Maersk Endurer into a highly effective oil rig. In 2015 the aim was quite the op-posite: to close it down and pre-pare it for de-commissioning.

Rafal Iwanow-ski and his team managed to get

Maersk Endurer in good shape during

2013/2014. Then his job description

suddenly took a 180-degree turn.

CHALLENGE

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Sea

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adle


Rotterdam-based Sea2Cradle aims to achieve a recycling rate of 100 per cent when a rig is decommissioned. Its managing director, Tom Peter Blankestijn, explains why the Maersk Endurer’s 150-metre legs were a major source of concern during the decommissioning process.


Maersk Drilling has hired the Dutch consultant Sea2Cradle as the company’s eyes and ears at the ship recycling yard in Zhoushan, China, the Zhoushan Changhong International Ship Recycling Co.

A large number of Chinese shipyard workers are current-ly employed on recycling the Maersk Endurer. The process is scheduled to last until the beginning of 2016.

In a segment of the shipping industry that is renowned for its lack of standards and its unhealthy and unsafe working conditions, Sea2Cradle offers its customers a different solution, namely demolition yards which feature accident-free working conditions, proper disposal of hazard-ous materials without exposing workers, and care for the environment.

According to Sea2Cradle’s managing director, Tom Peter Blankestijn, it is now possible to recycle more than 95 per cent of a merchant ship or a rig. But in the future, the com-pany aims to achieve a recycling rate of 100 per cent.

Is dismantling a jack-up rig like Endurer a normal task for your company? “Yes, for the greater part this is routine business for us. A tra-ditional merchant ship and a jack-up rig have a lot in com-mon: in both cases, there’s a large amount of steel and some hazardous materials that need to be recycled. But there are, of course, some significant differences. The 150-metre legs caused us concern, and we had to discuss and agree in detail a special plan with the recycling yard for dismantling them safely.”

What was the solution? “The concern was their height. We did not want the workers to climb up high and start cutting. We also wanted to avoid any use of the uncontrolled gravity method. Our planned

An obvious decision?

Head of Global Sales Morten Pilnov was a key person in making the decision regarding whether to stack, decommission or sell Maersk Endurer.

Was it an obvious decision to decommission Maersk Endurer? “Well, with hindsight it was an obvious decision. However, back then we were not so sure. We investigated several options. Stacking was one realistic solution. And of course we screened the market in order to find a potential buyer for Endurer.”

What made you decide to rule out stacking as a viable solution? “As you know, Endurer was a relatively old jack-up rig, and with the way the market was going we couldn’t expect to earn back the required investment within the rig’s expected lifetime. Meanwhile, a number of younger rigs were coming open in West Africa, and there was not a lot of demand among our cus-tomers for an old rig that had been idle for a significant period.”

Was it really impossible to find a buyer? “We didn’t want to sell for just a nominal amount. Selling too cheap could have meant that the new owner would decide to transport the rig to a beach in Asia for decommissioning. Obviously, we did not want that to happen. Therefore, we fixed a certain threshold price below which we were unwilling to sell. But despite our efforts, we were unable to find a buyer.”

Putting the

to restENDURER

DECOMMISSIONING

Maersk Drilling Newsletter 02·201516

solution is to place the structure in a dry dock on blocks, then to lower the legs two metres at a time and cut them off in stages. Then this will be repeated and repeated and repeated until the height is no longer a problem, and at that point a gantry crane will be able to reach and lift a longer section of each leg and bring all of them onshore.”

Have you encountered other challenges so far? “We had some worries about asbestos. When we were drilling the concrete flooring, we needed to make sure that no layer of asbestos had been used in the past to prevent fire from spreading quickly. Luckily no additional problems came to light, but it’s better to be safe than sorry.”

What does the concept of recycling mean when it’s applied to a rig? What are the main components, and how will they be recycled? “Some parts will be reused, like some generators and life rafts, if their certificates are still valid. Steel and aluminum are remelted and used for new products. So is the copper from the cables on board.”

Looking at the history books, how did the drilling companies traditionally decommission their oil rigs? “Not many rigs were dismantled in the past. Most of the

oil companies and the operators were pushing to get the maximum lifetime out of their units. If they actually de-cided to dispose of a rig, they followed the same traditional method of recycling, and that mainly meant either doing it locally or on the beach if this was operationally possible. No structural planning or procedures were followed to guarantee anything resembling the HSEQ standards we are after today.”

Does it still happen that oil rigs get towed onto beaches in Bangladesh for “traditional” decommissioning? “Maybe. We are not involved in such practices, as we do not believe that aiming for zero pollution, zero accidents and zero incidents is at all possible in those circumstances.”

What do you think will happen in the future? “With the oil prices as low as they are and these units being quite old, we expect many, many more to follow. Not only will a growing number of jack-up rigs go for demoli-tion, but the floating drilling units are also soon going to be phased out in greater numbers.”

How large a percentage of the Endurer can be recycled?“We expect it to be close to 98 per cent.”

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Sea

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adle

Sea2Cradle expects that 98 % of Maersk Endurer can be recycled. Dismantling a jack-up rig is more or less a routine job for the company.


This summer, Offshore Installation Manager Kim Leth Andersen was as-signed to what was a highly unusual task for the company.

Maersk Endurer had ended its contract in West Africa, and was about to make its final voyage to China for decommissioning.

Because of contractual obligations, a representative from Maersk Drill-ing had to be present on board the

Chinese heavy lift ship to look after the rig.

Kim Leth Andersen accepted the job.

53 days at seaHe embarked in Equato-rial Guinea on July 13th and disembarked in Zhou Shan, China on September 3rd – a total of 53 days at sea, travelling at an average speed of approximately 9 knots. The journey took Kim and Maersk Endurer south of Africa,

west of Madagascar and through the Strait of Malacca.

“There were 29 Chinese seamen and me. Only a few of the crew mem-bers spoke any English,” Kim recalls.

He lost 15 kilos on the trip. “Normally I’m a great fan of

Chinese food, and as an old seaman I don’t consider myself squeamish. But on this trip the menu got very mo-notonous very fast. According to the captain, the last provisioning of the ship took place just before they left Shanghai heading towards Europe. We had fish soup for breakfast, and fish soup for lunch. Dinners consisted of boiled duck, rice and seaweed. We were served small pieces of potato on the first six days, but except for that the menu didn’t change for the 53 days that the voyage lasted,” explains Kim.

Luckily, his personal provision included 7 kilos of protein powder, which helped him through the jour-ney. He would often wake up in the morning feeling hungry. And since he didn’t feel like eating fish soup for breakfast, he would mix up a 300-ml protein-powder shake.

“I was not starving at all, but I was desperate for some variety,” recalls Kim.

Helping the cookDuring the trip he was approached by crew members who often showed an interest in spare parts or other desir-

able items that might be useful to them. Two weeks into the voyage he was approached by the second cook, who said he was short of supplies for cleaning pots and pans.

“The equipment he was using was old and worn-out. The pots and pans were all blackened, and they were re-ally too far gone to be used. As for the food, he didn’t have many provisions to work with.” Kim says.

“One day, I took him on a guided tour aboard the Maersk Endurer and showed him its galley. Looking around, we found some useful stuff, and he left with several pots and pans, some brushes and some steel wool – a mag-nificent upgrade of his kitchen equip-ment. That really made his day.”

As Maersk Drilling’s representa-tive on board the heavy lift carrier, Kim Leth Andersen was in charge of monitoring the Maersk Endurer during the journey. The rig was the property of Maersk Drilling until its arrival in China and its subsequent transfer to the Chinese shipyard that was in charge of the decommission-ing process.

Daily reportsHe made daily reports to the compa-ny concerning the rig’s position, speed

Accompanying Maersk Endurer on its final voyage from Africa to Asia was more lonely and gruelling than Kim Leth Andersen had expected: scorching heat and monotonous food caused him to lose 15 kilograms.

By Nicolai Ostergaard. Photos: Kim Leth Andersen

A lonely final journey

There were 29 Chinese seamen and me. Only a few of the crew members spoke any English.


and estimated time of arrival. As Kim had been issued with a handheld satellite phone, three weekly calls to Maersk Endurer’s rig manager were also on his agenda.

“On top of that, I did daily potential dropped objects-inspections on the rig in order to prevent potential dropped objects from presenting a hazard to the Chinese crew. An older rig like Maersk Endurer starts to be-have a bit differently when it is lifted out of the water and onto the deck of a heavy lift ship that is moving with the waves. It was also my duty to observe and prevent any components starting to fall off. The ship’s crew was shuttling back and forth to the foreship, so a dedicated route was worked out. ”

According to Kim, it takes a lot of discipline to cope with idle days that continue for such an extended period, so it is necessary to set a daily agenda.

“So not long into the voyage, I challenged the officers to perform celestial navigation using the sextant and other methods which seem to have been dropped from daily bridge activities. The sextant was damaged, and we had to adjust the mirrors. So we did that, and during the voyage

we maintained daily observations by “shooting the sun”, and during the late dusk, the stars. It was fun to get reacquainted with the stars Pollux, Deneb and Castor.”

On arriving in Zhou Shan on September 3rd, Kim disembarked and left for the hotel, where he met up with the Tow Master, Morten Halkjaer. Throughout the voyage he had been maintaining weekly contact with Morten regarding the planning and the offload procedures, as well as preparing for the latter.

“It was a very nice feeling to arrive at the downtown Hilton Hotel, and to stand in the lobby thinking ’We’re finally here!’.”

Heavenly feelingSitting in the restaurant the same evening, he ordered his first meal following his rebirth as a landlubber. It consisted of a large plate of sushi, a mixed green salad, and various other side dishes.

“It was a heavenly feeling to expe-rience once again the variety of tastes which I had almost forgotten during the long journey,” he recalls.

Early on the morning of the 5th of September, the Maersk Drilling crew sailed out to the heavy lift ship

in order to offload Maersk Endurer. At 08:10, the mighty Maersk Endurer was officially handed over to the recycling facility by the Tow Master, Morten Halkjaer.

The voyage from Equatorial Guinea in West Africa to Zhou Shan in China, which had covered 10,790 nautical miles in 53 days, was over. It was time to go home.

“To leave Maersk Endurer for the last time and see her disappear as we sailed shoreside made me feel kind of sad. For the past three years, I have worked with the finest, most loyal and most dedicated people, who were a part of the transition from the dif-ficult year of 2013 into the successful one of 2014 in terms of both safety, performance and the attainment of set goals. I am proud to have par-ticipated in these achievements, and — not least — to have been a member of the Maersk Endurer team. This was a different assignment, but a great experi-ence.”

Kim Leth Andersen spent 53 days at sea. The average speed was 9 knots.


The energy capital of the world is slowing down

“Houston is regarded globally as an oil town, and given the current market conditions it would be easy to assume that the city’s economy is in free fall.”

Houston calling:


FROM THE GULF OF MEXICO

A Tale of Two Cities could be the book title that describes Hou-

ston right now. Houston is regarded globally as an oil town, and given the current market conditions it would be easy to assume that the city’s economy is in free fall. For those of us who work in the oil and gas industry, the anxiety is palpable. When we meet fellow workers in the industry, talk quickly turns to the stacking of rigs and a further round of layoffs in the city. The statistics offer no relief: a 59.2% year-on-year reduc-tion in the number of operating rigs in the US and a 62.8% reduction in oil exploration do not generate much enthusiasm.

Given these numbers, it makes no sense for construction cranes to be as common a sight as mosquitos in our city, which is built on a swamp. An oil town must surely suffer through this market. Ask anyone who was here in the 1980s, and they’ll tell you about vacant homes and the exodus of people from the city.

Energy is the driverBut Houstonians are resilient, and they have been determined not to allow a repeat of the 80s. Many think of Houston as the energy capital of the world, and with 4.2% of the population working in the oil and gas industry, that sector is certainly the leading economic driver. However, the city has been able to diversify its economy by expanding the manufac-turing, chemical and health care in-

dustries over the past three decades. Houston’s port is also the largest one in the region, handling over $250 billion in imports and exports annu-ally. To put it in GDP terms, at $525.4 billion Houston would have the 26th largest economy in the world, behind Belgium and ahead of Norway.

Although the diversification has helped, there is no doubt that Houston is still an energy town that depends on the oil and gas industry to drive its long-term economic suc-cess. Houston’s economy has slowed from a growth rate of 6.5% in 2013 to 1.8% in 2014. Estimates for 2015 range from 1.5% to 3%. The slow-down reflects the direct impact of the oil price on the Houston economy. Without the diversification of the last 30 years, these figures would be significantly worse.

Mix of peopleGiven all the negative news, it would be natural to assume that a black cloud must hang over the city. Yet that is not the case. I believe that the diversification of the citizenry has helped Houston just as much as the diversification of its economy. A surprising 23.1% of Houstonians are foreign-born. The mix of people having diverse backgrounds and experiences means that Houston’s atmosphere is ever-changing.

Maersk Drilling, USA seems to be a microcosm of Houston’s situation. On one side is the positive story of the Viking and Valiant, which are

one year into operation on strong contracts, driving high uptime and revenues. On the other side is the De-veloper, which is coming off contract with very few work prospects in the Gulf of Mexico. Much like Houston’s response to the downturn in the 80s, at Maersk Drilling, USA we are urgently reviewing our policies and procedures to ensure that we are fully prepared to weather this storm. We must build an organization that will not only be able to get through it, but will have the capability and capacity to grow after the market changes. It seems clear that the Gulf of Mexico will be the first region to drill a 20k well, and our team has to be poised to move quickly into this new frontier and beat the competi-tion.

Hoping for changeGiven the resilient nature of Housto-nians and the cyclical nature of the oil industry, one can only hope the current situation matches the local weather in the spring: “Just wait a little while and it will change”.

As I look out through my work window and watch the ongoing construction of the new Phillips 66 global headquarters and a high-rise apartment building across the street, I can only pause and think, “We are Houstonians. Not only will we get through this, we will come out of it even stronger”.

By Steve Schappell

The energy capital of the world is slowing down

Who’s who

Steve Schappell is Location Director at Maersk Drilling, USA. He has been with Maersk for more than seven years. Before joining the Maersk Group Steve spent ten years in the US Army. In Maersk he spent three years in procurement roles supporting US flag vessels, two years as a program manager in Japan overseeing a maintenance and procurement program, two years as Head of Supply Chain, Americas, supporting Maersk Drilling. Steve has been Location Manager Maersk Drilling, Houston for five months.

“Houston is regarded globally as an oil town, and given the current market conditions it would be easy to assume that the city’s economy is in free fall.”

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Hen

ry H

an


Lene Reitzel

Lene Reitzel started her career in the Maersk Group in 1989 as a Shipping Trainee. She spent 11 years with Maersk Drilling, latest as the Head of Organisational Development and Compensation & Benefits. From 2013, Lene was the Head of HR for Maersk Tankers and a member of the Maersk Tankers Executive Leadership Team. In her free time, she enjoys a good workout and spends a fair amount of time watching her two sons aged 14 and 17 play football all across Zealand on the weekends.

Anniversaries40 Years01 September Hans Christensen, Operations.

25 Years01 August Marianne Sorensen, CFO, Finance. 09 August Brian Kennedy, Maersk Integrator. 03 September Frank Eliassen, Operations. 05 September Jesper Hansen, Maersk Interceptor. 01 October Jan Franch Pedersen: Maersk Interceptor. 01 October Jens Lehmann Sorensen, Maersk Galant. 08 October Nigel Robinson, Waiting Pool. 09 October Jorgen Nielsen, Maersk Intrepid. 17 October Jarle Halvorsen, Mærsk Innovator. 07 November David Swanton, Mærsk Innovator. 08 November Lars Tynaes, Operations. 14 November Kaj Krabbe Nielsen, Operations. 19 November Bjarne Jorgensen, Marine Department. 21 November Jesper Wobbe, Maersk Integrator. 13 december Per Wetting, Operations. 14 December Jesper Krabbenhoft, Maersk Integrator. 18 December Hieu Trung Pham, Coating.

How is the HR department at Maersk Drilling navigating the current low visibility market in the oil industry?

The newly appointed Head of HR, Lene Reitzel, is ready to take on the challenge.

“I am very excited to join Maersk Drilling, and I am currently getting re-acquainted with the organisation,” Lene Reitzel says.

She continues: “I am also aware that I am joining the company at a

difficult time for the industry where we are having to navigate low visibility.”

Since 2013, Lene has been the Head of HR for Maersk Tankers and a member of the Maersk Tankers Executive Leadership Team.

Before that, she spent 11 years with Maersk Drilling, most recently as the Head of Organisational Develop-ment and Compensation & Benefits. She started her career with the Maersk Group in 1989 as a Shipping Trainee.

How can HR help the company to adapt to the new oil reality?“The low oil price has changed the scope of our work in the HR department. My predecessor, Jesper B. Madsen, successfully began the process of setting the organisa-tion up for the totally new oil reality we find ourselves in today. I intend to continue where he left off,” says Lene Reitzel.

“I see HR’s role in this process ensuring that Maersk Drilling has the organisation and people required to succeed both now and in the future – in other words, we are taking care of today, while actively preparing for tomorrow. But it is still too early for me to be able to identify all the factors that will enable us to achieve a match with our current and future needs.”

Lene Reitzel joined Maersk Tankers after it had endured years of cutbacks, at a time when its HR depart-

Ready for the job!ment was starting to rebuild the organisation using a new strategy.

Are you confronted with a similar challenge in Maersk Drilling?“In some ways. Maersk Drilling is having to adapt to a challenging market, and HR is a vital pivot for defining the transition and helping to maintain employee engage-ment at a high level during this journey.”

What is your impression so far?“My sense is of a cohesive organisation both on- and offshore that is committed to delivering quality service, and which is also widely recognised for doing so by our customers,” explains Lene Reitzel.


PERSONAL

Offshore Promotion List17/10/15Bo Johan Mattias Ottosson promoted from Assistant Marine Section Leader Trainee to Assistant Marine Section Leader, Waiting Pool

26/08/15Charles Velie promoted from Senior DPO, Maersk Developer, to Assistant Marine Section Leader, Maersk Developer

23/09/15Alexander Heil promoted from Marine Section Leader, Maersk Developer, to OIM, Maersk Developer

Rolling 12 month trend

• Improved TRC and LTI frequency trends when looking at rolling 1 year or 5 year overviews.

• No well control incidents since the launch of the revised Well Control Manual that integrates Human Factors into the procedures

• 54 “perfect” days (2015 YTD) of incident free operations across the entire MD fleet – including all incidents (w/ first aid cases) and near misses

DATE UNIT/LOC INCIDENT BRIEF DESCRIPTION

09October 2015 Maersk Viking MTC Left thumb injury while rigging up outer solid body elevator

Rolling 12 month Actual vs. Target

By Asset Team

By Type

0,0

1,0

2,0

3,0

0

1

2

3

4

5

Nov

-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

LTI TRC LTIF TRCF

0,0

1,0

2,0

3,0

0

1

2

3

4

5

Nov

-14

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

LTI TRC LTIF TRCF

1 1 1 1

2 4

1 1 1

2 1

3

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

nov

./1

4

dec

./1

4

jan

./1

5

feb

./1

5

mar

./1

5

apr./

15

maj

/15

jun

./1

5

jul./

15

aug.

/15

sep

./1

5

okt.

/15

Critical Serious Regular

4

3

2

1

0

5

4

3

2

1

0

6,00

5,00

4,00

3,00

2,00

1,00

3,0

2,0

1,0

0,0

3,0

2,0

1,0

0,0

nov

. 14

dec

. 14

jan

. 15

feb.

15

mar

. 15

apr.

15

may

15

jun

. 15

jul.

15

aug.

15

sep

. 15

oct.

15

nov

. 14

dec

. 14

jan

. 15

feb.

15

mar

. 15

apr.

15

may

15

jun

. 15

jul.

15

aug.

15

sep

. 15

oct.

15

Counts

Counts MD LTI &TRC Freq.

2011

TRCF LTIF

LTIF TRCF Linear (LTIF) Linear (TRCF)

2012 2013 2014 2015YTD

3,08

0,37

2,48

0,57

2,23

0,37

4,92

1,12

4,73

1,40

DeepWater

Harsh Env. J/U

International J/U

Marine Operations

Maintenance and Technical Modifications

Transport

Drilling/well activities

Other Process

2

1

1

1

2

2

3

4

2,16

0,51


SAFETY UPDATE

IADC Aligned Safety Performance as of end October 2015

2011-2015 YTD LTI and TRC Frequencies High Potential Incidents

Well Control Incidents

Safety Performance comments

Recordable Incident details since last update

was the Q3

EBIT marginA decrease from 44% in Q3 2014. But well above the 28.6% for 2014.

in Q3. For floating rigs the uptime was even higher, 98% versus 96% in Q3 2014.

in October 2015. The score was 6,2 in 2014, but 6.4 in Q1 and Q2

Retention

ON- SHORE

OFF- SHORE

in Q3 2015. The off-shore retention rate is at a very high level. It was 94.7 in 2014.

With the current pipeline of contracts we have solid contract coverage for the coming years – especially in the light of the bleak market conditions expected in 2016.

2015 2016 2017

85%70%

49%

Published by:Maersk DrillingEsplanaden 50DK-1098 CopenhagenTel: +45 63 36 00 00Fax: +45 63 36 31 82Mail: [email protected]

Volume 29, No. 2 · December 2015

Editor: Nicolai Østergaard. Tel./Fax: +45 23 27 87 55. Mail: [email protected] & production: Datagraf CommunicationsCopies: 5,000Deadline next issue: January 2016

This Newsletter is published for the employees, retirees and business connections of Maersk Drilling. The NewsLetter is printed on Forest Stewardship Council (FSC) paper. Reproduction permitted only after agreement with the editor.

Contract coverage

Operationaluptime

6.3

Our customersatisfactionscore of

97%

36.8%

89.45%

97.5%

KPI CORNER

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