knowledge required to_enter_the_norwegian_markets_kvaerner
DESCRIPTION
Ms. Heidi Palmgren, Managing Director, Kvaerner Finland Ltd.TRANSCRIPT
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Knowledge required to enter the
Norwegian Markets
MI14 seminar June 11 2014
Kvaerner Finland Oy
Heidi Palmgren
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© Kvaerner 2013 12.06.2013
Contents
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1. HSSE – Just care
2. What is Kvaerner AS and what is Kvaerner Finland Oy?
3. Norwegian market – Great Expectations
4. Experiences
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© Kvaerner 2013 12.06.2013
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Health, Safety, Security, Environment
HSSE Awareness
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Safety moment
Risk Observation
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© Kvaerner 2013 12.06.2013
Concrete 33 %
KCI 2 %
Contractors Norway
57 %
0 %
Total worked hours = 1 563 842
May Year to date
0 0 0 0
Total worked hours = 7 790 179
8 Serious incidents or serious near miss
Fatality 0
Serious with disablement 1
Medical Treatment (TRI) 17
Injury (LTI) 1
219 Near miss
25 190Observations
Fatality 0
Serious with disablement 0
Medical Treatment (TRI) 5
Injury (LTI) 0
22 Near miss
4 503Observations
3 Serious incidents or serious near miss
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Concrete 40 %
KCI 2 %
Contractors Norway
52 %
0 %
© Kvaerner 2011
Corporate 0,5%
Jackets 8 % Corporate 0,3% Jackets 5 %
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2. What is Kvaerner AS
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© Kvaerner 2013 12.06.2013
An international company
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Kvaerner offices Target markets
Canada
North Sea Barents Sea North West
Russia Far East Russia
Australia
Kvaerner well positioned in booming markets as well as “blue oceans”
Caspian Sea
China/SEA
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© Kvaerner 2013 12.06.2013
Kvaerner Profile - Business Areas and product range
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CONTRACTORS NORWAY
Topsides Floaters
Onshore upstream facilities
Leading EPC contractor to the North Sea market
CONTRACTORS INTERNATIONAL
Topsides Floaters
Spearhead for international expansion
CONCRETE SOLUTIONS
Concrete substructures
Russia
Global leader in gravity based
concrete structures
Large steel jackets for oil & gas installations
European leader in steel jackets
JACKETS
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Kvaerner - EPC projects in the field development phase
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Licensing Exploration Field Development Production Abandonment
Feasibility, concept, FEED
Procurement
Assembly and Integration
Studies to evaluate potential field development solution Global design of chosen solution
Completion & Commissioning
Engineering
Construction
Marine operations
Engineering management System definition Detailed design/volume engineering Follow on engineering
Technical procurement Commercial procurement Sourcing Labour Subcontractors
Construction management Shop engineering Pre-fabrication Fabrication
Logistics Assembly procedures Assembly Integration
Tow-out Tie-ins HUC
Start up and testing
Seismic data Government auctions and leases to operators
Reservoir info Exploration drilling Appraisal drilling Well completion
Front End EPC projects Ready for operations
Production drilling Field maintenance Reservoir stimulation Logistics and supply
Decommissioning Abandonment (plugging the well)
2-3 years 1-2 years 1-2 years ~4-8 years ~10-40 years
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A focused Front End and EPC organisation
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Project management
Analysis
Concept selection
Concept development
Definition
Cost estimate
Requirements
Design elements
Detailed engineering
Materials
Labour
Sub-contractors
Construction management
Construction
Installation
Hook-up
Pre-start up
Onshore disposal
Concept FEED Engineering Procurement Construction Completion Decommissioning
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2. And what is Kvaerner Finland Oy
Kvaerner Finland Oy, Ulvila
100% owned subsidiary of Kvaerner AS
Founded 2001, part of Kvaerner since 2008, belongs to Contractors International BA
Turnover 4,35 MEur Y2013
33 Employees
DNV ISO 9001:2008 certified
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© Kvaerner 2013 12.06.2013
Finnish Offshore History - Kvaerner Finland background 2000 2008 1995 2011
Kvaerner Finland Oy
Company Sale 1995
Company Sale 2000
Corporate Merger 2002
Aker Offshore Oy
Corporate Demerger 2011
RR Offshore Oy
Company Sale 2008
Corporate Merger 2002
Re-Branding 2008
Spin-Off 2001
Rauma Offshore Contracting Rauma Offshore Works
Aker Rauma Offshore Mäntyluoto Works
CSO Aker Rauma Offshore Mäntyluoto Works
Technip Rauma Offshore Mäntyluoto Works Technip Offshore Finland
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© Kvaerner 2013 12.06.2013
Strategy since April 2012 :
Resource and Service Provider to Kvaerner, Aker and third
party companies
Kvaerner Finland Strategy & key business
Finland Engineering HUB
Finland Resources
Construction management
Shortage of engineers and project management resources
Promote Finnish potential in Norway
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Kvaerner Finland services
Own competence and qualified Finnish network and subcontractors Construction/Project Management
Procurement & logistics, Construction management, Project planning & support/administration, incl. experience in Russian projects
Engineering services Steel structures & Outfitting, Piping:
Engineering, all phases – FEEDs, basic, detail and workshop engineering
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3. Norwegian market - Great Expectations
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Growth potential in 2012 but Several North Sea projects were lost in 2012/13
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Topsides Mariner Daewoo/CB&I Martin Linge Samsung HI/Technip Aasta Hansteen Hyundai HI/Technip Ivar Aasen Semcorp Marine/Mustang (Gina Krog) Daewoo/AKSO
Jackets
Mariner Dragados/SNC Lavalin Gina Krog (Dagny) Heerema/SNC Lavalin Ivar Aasen Saipem
Global competition represented by Korean EPC players fastening grip in the North Sea Contracts worth ~40 bn NOK went abroad in 2012 Norwegian contractors 5-40% more expensive than the Koreans
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New tender round 2014/2015 Opportunities for Finnish potential
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Project management resources Engineering resources Construction management Project resources Procurement Construction – potential for Finnish yards (modules, assembly etc.) Norwegians – busy Good historical offshore traditions
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Cost awareness - Cut cost level min 15 % - Develop delivery model – COOEC Nyhamna modules to be fabricated at COOEC in China (Oct 2013)
Possibility for Finnish services – deliveries – subcontracting – resources
Turnaround
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Subcontracting opportunities In a typical EPC project, procurement represents more than 50% of the total project value
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11 500 tonnes structure steel
4 900 tonnes mechanical equipment
2 500 tonnes pipes
6 800 valves
340 000 metres of cable installed
25+ nationalities 250 companies involved
~3 900 000 working hours on site
Total of 3 500 people involved in the project
Ormen Lange example
Typical procurement value of NOK 3-4 billion
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4. Experiences
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Lessons learnt – Entering Norwegian Market
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Why Finland? Existing Offshore tradition High level education Flexibility Firm commitment Quality, reliability Skills Ethics Stableness Cost level
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Promote Finnish potential in Norway
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Very limited knowledge on the Finnish potential
Companies struggling with limited marketing resources
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Lessons learnt – Entering Norwegian Market
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Need to do Customer Focus – know your Client
Sales skills - Service mind-set
Prepare, do the homework Contact – take actions – fulfil – follow up > take it to the finish Make it easy for the Client
Cost competiveness Korea – Finland – Norway
Competence and Performance
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Thank you!
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© Kvaerner 2013 12.06.2013
Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction. Disclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction. Disclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Kværner ASA and Kværner ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Kvaerner’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Kværner ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Kværner ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.
Copyright and disclaimer
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