Statoil has decided to cancel the contract with Stena Drilling for the mobile rig Stena Don.
The rig has been on contract to Statoil since 7 February 2014, performing operations for the Troll and Fram licenses. The original contract termination date is 7 February 2017.
The Stena Don drilling rig. (Photo: Stena Drilling)
The cancellation will take effect after the plugging activity on the Troll field has been completed, in early November. After this, Stena Don was committed to the Fram license.
However, the license does not have any work program for the rig, nor does Statoil have any other activities where the available capacity can be used.
Oceaneering International, Inc. (“Oceaneering”) (NYSE:OII) announces that it has acquired the assets of Blue Ocean Technologies, LLC (“Blue Ocean”), a privately held provider of riserless light well intervention (“RLWI”) services, for approximately $30 million in cash. Included in the acquisition are three RLWI systems, two of which are currently under construction, and are expected to be fully functional by mid-2017.
Oceaneering expects to invest approximately $10 million to complete construction of the two RLWI systems.
Subsea well intervention services are intended to maximize production and increase the recovery rate from offshore oil and gas reservoirs or, alternatively, prepare wells to be plugged and abandoned. Blue Ocean’s RLWI systems have the capability to perform a wide variety of cost effective services for well interventions, including well diagnostics, damaged well remediation and workovers, and well plugging and abandonment. Blue Ocean’s leading RLWI technology holds the current depth record for deepwater riserless intervention at 8,200 feet (2,500m).
Kevin McEvoy, Chief Executive Officer of Oceaneering, stated, “We are pleased to complete the acquisition of Blue Ocean, which we believe will enable us to further penetrate the subsea well intervention market and support existing and new customers with additional safe, cost effective subsea solutions. The services offered by Blue Ocean are complementary to our subsea products operations, and Blue Ocean will add talent and expertise that reflects our commitment to provide quality results with an integrated and expanded platform to drive growth. This acquisition fits our strategy on increasing our services and products offerings focus related to the production phase of the offshore field life cycle.”
Oceaneering intends to report the future financial results of Blue Ocean through Oceaneering’s Subsea Products segment, under its Services and Rentals business unit.
Dril-Quip, Inc. (NYSE: DRQ) has announced that it has entered into an agreement to acquire TIW Corporation, a 100-year old industry-leading manufacturer of consumable downhole products for the global oil and gas market, for approximately $143 million, subject to closing adjustments. TIW provides liner hanger systems and related equipment and services worldwide and is based in Houston, Texas.
Blake DeBerry, Dril-Quip's President and Chief Executive Officer, remarked, "We are pleased to include TIW Corporation as part of the Dril-Quip family, and look forward to significantly expanding our product offerings to our customers. TIW has a long history of success as a family-owned company and we intend to preserve that legacy by continuing to reliably serve our customers with our combined teams around the world. TIW is a market leader in the liner hanger business and we are particularly excited about its expandable liner hanger technology that is frequently utilized in deepwater or high pressure/high temperature environments.
"This acquisition will be the first in Dril-Quip's history and allows us to use our strong balance sheet to increase shareholder value in the long-term. TIW's products and services fit squarely with and complement our current product offerings. In addition to its offshore market, TIW's onshore presence, particularly in the Middle East and South America, will provide Dril-Quip with more market opportunities."
Steve Pearce, President of TIW, commented, "I believe this transaction will positively position our business for further expansion. Both TIW and Dril-Quip have a long and proud tradition of innovation and commitment to the oil and gas industry, along with a shared culture of customer service, quality products and continual product development. Dril-Quip's wider product offering and broader international footprint should allow for long-term growth of our liner hanger business."
TIW is being acquired on a debt-free, cash-free basis and Dril-Quip intends to fund the consideration with cash on hand. Dril-Quip anticipates synergies to be realized from this transaction, primarily driven by cost efficiencies as well as expanded sales opportunities. The transaction is subject to regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur during the fourth quarter of 2016.
TIW reached peak revenues of approximately $140 million in 2014. Revenue is expected to trough between $60 million and $70 million in 2016 and is expected to increase to between $80 million and $100 million by 2018. EBITDA margins are expected to be similar to Dril-Quip's margins once synergies are realized. Additional transaction details are available in the Investor section of Dril-Quip's website at www.dril-quip.com.
Evercore served as Dril-Quip's exclusive financial advisor and PPHB served as TIW's exclusive financial advisor for this transaction.
Launched on Monday, October 17, 2016, the powerful EV2 decision support platform enables oil and gas clients to determine the value of undrilled exploration acreage in the world’s most prospective basins. Combining the geological expertise of CGG Robertson with the commercial insight of Wood Mackenzie, EV2 represents an industry first in terms of coupling a flexible valuation tool with a rigorous and detailed geological knowledge base in an intuitive environment. Wood Mackenzie is a Verisk Analytics (Nasdaq:VRSK) business.
EV2 global coverage map, indicating the 100 priority basins now available in light blue and the additional 80 basins to be released by 1H17 in dark blue.
EV2 differentiates volume and value potential at basin, play, and block scales and combines this analysis with unique functionality, such as the ability to change underlying subsurface modeling assumptions. Users can incorporate proprietary knowledge from seismic, geologic data and in-house expertise to calibrate yet-to-find reserve assumptions, subsurface risk maps, and oil price assumptions. Custom scenarios allow quick comparison of farm-ins, license rounds, and new deal opportunities for new ventures teams, petroleum economists, and financial analysts.
The platform now covers 100 priority basins around the world in areas with leading exploration potential, upcoming license rounds, and high-profile prospects to help clients secure the best value return on their investment. A further 80 basins will be released between now and March 2017, resulting in a comprehensive global data set. EV2 allows users to value corporate acreage portfolios in an objective, comparable, and consistent manner, helping to fill a critical gap in the market.
The EV2 platform is prepopulated with detailed basin, play, and block data, distinguishing it from other offerings that simply provide modeling software. The solution delivers baseline geologic assessments, including play-level maps of combined common risk segment (CCRS), lead density, and hydrocarbon phase. Statistical yet-to-find (YTF) analysis, field development scenarios, and block-specific fiscal terms are also transparently presented in EV2. This data provides trusted insight to expedite the new ventures workflow.
Sophie Zurquiyah, chief operating officer, Geology, Geophysics & Reservoir, CGG, said: “Following industry interest in the prerelease EV2 ten-basin analysis multi-client product in 2014, we are delighted to be delivering the EV2 valuation platform. With our strategic ally Wood Mackenzie, we will continue to expand and update this offering to ensure it brings our clients accurate and reliable insight to increase their chances of success. At a time of continued low oil prices and reduced exploration spending, we believe EV2 will provide crucial input to explorers that will reduce the risks and increase the value of their decisions.”
Neal Anderson, president of Wood Mackenzie, said: “The unmatched alliance of Wood Mackenzie and CGG has created a completely unique offering for our clients. EV2 is timely, easy to use, and adds objectivity to decision-making. This is the first tool that provides an independent, transparent, and consistent view of volume and value potential for undrilled acreage. The ability to value corporate acreage portfolios will help explorers invest wisely.”
Unique System LLC (USA), a Unique Maritime Group company, is one of the world’s leading integrated turnkey subsea and offshore solution providers based in New Iberia, Louisiana and Houston, Texas. The company specialises in the supply of equipment for sale and rental to the diving and offshore industries in the Gulf of Mexico region.
Unique System LLC, Houston, has taken delivery of two EMO DOMINO-7 Mk-2 fibre optic multiplexer systems which are to be added to Unique System’s ROV rental pool of products.
EMO DOMINO-7 Mk-2 fiber optic multiplexer system
The EMO DOMINO-7 Mk-2 has been designed to offer up to 2000 watts of DC power distribution from a universal AC supply with power controlled by rugged locking switches at the DOMINO-7 topside mux rack. This multiplexer system offers a range of video, Ethernet, and serial data channels over a single or redundant fiber optic telemetry system. The system is rated for 3000 meters ocean depth.
The DOMINO-7 line is the most compact form-factor of working class ROV multiplexer systems available on the market today. The DOMINO-7 MUX system remains flexible to user requirements and can be rapidly reconfigured to meet the power and protocol needs of a large number of ocean tools and devices.
MacArtney Canada was fairly newly established with a view to consolidating MacArtney’s presence on the Canadian east coast as an independent unit under the MacArtney Inc. umbrella as the 6th regional operation in North America. The company serves MacArtney’s main markets representing oil and gas, ocean science, defence, marine construction, fisheries and marine renewables, including OEMs, shipyards and other suppliers catering to these markets.
Aker Solutions has been awarded the contract for upgrading the Mongstad terminal for Johan Sverdrup oil from late 2019.
The Mongstad terminal near Bergen. (Photo: Øyvind Hagen)
Its value estimated at NOK 350 million, the contract includes engineering, procurement and the construction of a pig receiver for the oil export pipeline from Johan Sverdrup.
In addition, the scope of work includes connecting the Johan Sverdrup oil pipeline to the existing storage caverns at the Mongstad terminal.
The engineering work will be performed at Aker Solutions’ office in Bergen. The pre-fabrication of pipes and steel structures will take place at Aker Solutions’ yard in Egersund, whereas the bulk of the construction work will take place at the Mongstad terminal.
"Starting in early 2017 the work at Mongstad will provide opportunities for local suppliers in the Mongstad area," says Kjetel Digre, project director for Johan Sverdrup.
"It is also gratifying that we can include Egersund as a location and contributor delivering on the enormous jig-saw puzzle that the Johan Sverdrup project represents. In Norway all of the big yards along the entire coast are now involved in developing one of the biggest industrial projects in Norway in recent years," says Digre.
Contracts at a value of more than NOK 60 billion have been awarded for Johan Sverdrup, more than 70 % of this won by Norwegian suppliers.
Click HERE to see the map of Johan Sverdrup contracts.
Underwater technology company, Sonardyne International Ltd, has appointed Scandinavian Aerospace and Industry AB (SAI) as a reseller of its maritime security products in Sweden, Denmark, Finland and surrounding territories.
Based in Tyresö, Sweden, SAI supplies, supports and integrates commercial-off-the-shelf (COTS) technologies for air, land and sea applications. It works with industrial and defense organizations across Scandinavia including harbor authorities, naval forces, maritime enforcement agencies and shipyards. Under the terms of the new agreement, SAI will now promote Sonardyne’s family of underwater security products; Sentinel IDS, NOAS and high resolution mine hunting sonar, Solstice.
Sonardyne has appointed Scandinavian Aerospace and Industry AB as a reseller of its maritime security products in Denmark, Sweden, Finland and surrounding territories.
Sentinel is the security industry’s most widely deployed intruder detection sonar, capable of reliably detecting, tracking and classifying divers and small underwater vehicles approaching a protected asset. Whether it is safeguarding a critical national infrastructure facility, strategic port or naval vessel at anchor, Sentinel provides a rapidly deployable, 360° underwater security solution for any scenario.
SAI is now amongst the first of Sonardyne’s resellers to have the opportunity to market the recently introduced Navigation and Obstacle Avoidance Sonar – NOAS. Installed in the bow of a vessel, 2D and 3D sonar arrays scan the water column looking for navigation hazards that could result in a collision or grounding. The system can be used as a standalone navigation aid or integrated into a vessel’s existing bridge management system.
Commenting on the appointment, Hans Sandström, Business Development Director with SAI said that the company was delighted to be adding Sonardyne to their portfolio of maritime surveillance capabilities. He said, “For many organizations, the underwater domain remains a vulnerability in their security and navigation capabilities. However with technologies such as Sentinel now available to us, it is one we can now help our clients to close.”
Trelleborg’s engineered products operation has successfully completed its supply of floatover equipment for the PETRONAS NC3 gas field, located in Block SK316, 200 kilometers North of Bintulu, Sarawak in Malaysia.
Trelleborg provided PAPE Engineering, an engineering company responsible for the transportation and installation of the platform jacket and topside, with four Leg Mating Units (LMUs), as well as four sway fenders, four loadout pads and four deck support units (DSU).
Mr. Olivier Beauclair, Director for Platform Transportation and Installation at PAPE, commented: Having worked closely with Trelleborg to great success on previous projects, we know that they're able to supply proven quality solutions with considerable ease of use and offer quick turnaround times - both imperative for a high stakes project like PETRONAS NC3. This meant that we had no hesitation it was entirely suited for the project.
In addition, Trelleborg site service engineers were able to provide supervised on-site support, ensuring a seamless LMU installation within the topside of the Central Processing Platform.
Performed at the fabrication yard prior to the floatover process, the LMU installation provided PAPE with assured and risk-free performance before the floatover operation commenced.
Vincent Tan, Sales and Marketing Manager at Trelleborg’s engineered products operation, commented: At Trelleborg, we aim to support every aspect of customer projects with a fast response and high quality solutions, whilst making sure we meet all delivery schedules and site requirements.
With a global reach and local support, we’re able to provide exactly that. Our manufacturing facility in Singapore ensured that PAPE had the local feet on the ground support, whenever it was needed.
For more information about Trelleborg’s engineered products operation, or any of its products and solutions, please visit the Trelleborg Engineered Products website.
Steen S. Karstensen joined the Group in 1986 and has had an impressive 30-year-career with the company in procurement, logistics, supply chain, in-house consultancy and other cross-functional areas. Currently Chief Procurement Officer, he is now appointed CEO of Maersk Supply Service with effect from 24 October.
Steen S. Karstensen
”Steen Karstensen is a widely respected leader who has built a strong global procurement organization serving all of Maersk's business units, generating significant savings. Additionally, he has been responsible for Maersk Oil Trading and Maersk Maritime Technology, which has given him in-depth exposure to also the Energy related aspects of the Maersk business model,” says Group Vice CEO Claus V. Hemmingsen who continues:
“In addition, Steen helped in creating Maersk Management Consulting from scratch, which has brought talent and new thinking to our businesses. I’m excited that he will now take on the challenge in heading Maersk Supply Service in their next chapter of the journey.”
Steen Karstensen’s previous role in Group Procurement included overseeing Maersk Maritime Technology, Maersk Oil Trading and Maersk Management Consulting. These areas combine a workforce of over 800 professionals globally, located in 20 different countries.
“I’m excited to take on this new role. Maersk Supply Service is currently operating in very tough markets, but nevertheless is well positioned to broaden its scope of operations,” Steen Karstensen says. “A strong balance sheet gives the business a position of strength, from which it can be part of the consolidation and restructuring that inevitably will take place in the industry.”
Jørn Madsen, former CEO of Maersk Supply Service, was recently announced CEO of Maersk Drilling. He will take on this role with effect 7 November.
The world’s leading manufacturer and supplier of Anti-Pollution and Safety Marine Breakaway Couplings (MBCs) has launched a series of new service packages that will allow end users of MBCs to maintain top level operational performance.
Offering four options, Gall Thomson will now provide customers of its field verified MBCs a flexible range of global service choices based on the customer’s operational requirements and logistics.
Regarded as a vital component for the safe transfer of crude oil and refined products, Gall Thomson MBCs successfully saved nine countries from catastrophic oil spills during 2015 following 14 activations.
Called ‘MBC4’, the new packages are seen as a further step to improved and safer transfer of oil and refined products, as well as achieving minimum down time and offering peace of mind for operators.
The four new packages include In-Field Service, GTAC* Engineer Visit, GT Approved Regional Service Centre and Return to GT UK Technology Centre. All four can be called upon for inspection, refurbishment or resetting of Gall Thomson MBCs.
Max Virgin, MD of Gall Thomson sees this new range of services as a way to consolidate the company’s reputation as the global leader in its field, with the ability to better service their customers’ needs and also feedback information into the continual product development process.
Max said: “Key to this approach is to support customers with a range of inspection and maintenance services to preserve the integrity of the MBC. As Gall Thomson is considered the industry standard with almost 2000 MBCs in service, MBC4 is complimentary to this strategy.
“The operational performance of Gall Thomson MBCs in 2015 speaks for itself. Making sure an MBC is in top working order is vital so that should an offshore accident take place the device will activate as intended when called upon and mitigate the risk of equipment damage and pollution.
“Having four options is the ideal solution for inspection, refurbishment, resetting, repair and upgrade where applicable, and gives our customers total flexibility.”
For those wanting to conduct an In-Field Service, work can be carried out by the operator's own maintenance staff using standard tools and equipment and a Gall Thomson spares kits/maintenance manual. No specialist tools are required and no additional equipment is needed such as assembly frames or complicated apparatus.
There are thee further options available to customers which carry the Gall Thomson Warranty and GTAC certification.
For GTAC Engineer Visit a qualified Gall Thomson engineer will conduct a site visit to carry out the work and is ideal for inspection, refurbishment or resetting.
The GT Regional Service Centre and Return to GT Technology Centre options will see the MBC serviced at one of Gall Thomson’s nine strategically located centers. Both are ideal for inspection, refurbishment, resetting and repair work.
Max added: “Our technology is proven in the field with more than 37 years of field experience and over 270 successful activations to date.
“Constant interaction with terminal operators and with hundreds of MBCs serviced both at home and abroad, has allowed Gall Thomson to amass an unrivalled knowledge bank on operational performance and best practice, providing our customers tailored servicing, MBC handling and operational procedures.
“The culmination of this lends itself to the reliability of the Gall Thomson MBC which has prevented millions of pounds worth of damage to offshore systems and protected the environment from oil spill.”
BRUNEI has become the first country in the world to commission International Minimum Industry Standard Training (IMIST), reaffirming its strong commitment towards ensuring the safety of its 20,000-strong oil and gas industry workforce.
Following the Bruneian government’s undertaking to put around 3,000 front line worksite supervisors through the OPITO global standard for health and safety training earlier this year, the country has now set a deadline of November 2017 to roll IMIST out to people in this role.
IMIST was launched by not-for-profit industry safety organis\zation OPITO in 2011 to enhance workforce safety and competence by providing a comprehensive and consistent level of training across the world. The standard ensures that workers – no matter where they are based or who they are employed by - have the necessary safety awareness and training to reduce risk and minimize the potential for incidents.
Used by oil and gas companies in almost 50 countries around the world, Brunei is the first in the region to introduce its use for workers engaged in exploration and production activities.
Steve England Head of HSSE at the Energy and Industry Department Prime Minister’s Office said: “The energy sector is a core driver of Brunei’s economy. It accounts for more than 60 percent of Brunei’s GDP. In line with our National Vision 2035 to have sustainable energy for Brunei Darussalam’s prosperity, we aim to boost the skills of Bruneians to achieve the vision’s goals. The introduction of this first phase of minimum HSE standards is the beginning of our (HSSE’s) commitment towards that vision.
“The Bruneian government has undertaken to put approximately 3,000 front line worksite supervisors through the OPITO global standard for health and safety training. We have set a deadline of November 2017 to roll IMIST out to its entire oil and gas front line worksite supervisor workforce.”
Delivered in classroom and digital learning format, three already approved invigilation centers will now provide the training to industry: Mahkota Maju Sdn Bhd, Brunei LNG and Megamas Training Company Sdn Bhd with more to follow.
David Doig, chief executive officer of OPITO Group said: “Every worker has the right to go to work and return safely at the end of the day. Our mission is to support the global oil and gas industry to build a sustainable, competent and safe workforce and to ensure that quality, innovation and partnership underpin everything that we do.
“IMIST provides uniformity in training and ensures that everyone, regardless of their employer, role or discipline, has the same basic safety understanding and can perform their role to the same standard. We have worked closely with the Brunei Government on the implementation of IMIST and firmly believe their commitment will set a precedent in terms of how energy-producing nations train their workforce.”
A unique, not-for-profit organization, OPITO is wholly owned by the oil and gas industry and is responsible for ensuring it has a safe, skilled and competent workforce. With operation centers in Aberdeen, Dubai, Cyprus, Kuala Lumpur and Houston, OPITO standards, qualifications and workforce development frameworks are currently used by employers in over 45 countries worldwide.
Maersk Oil has awarded a long-term contract to Lloyd's Register for a comprehensive suite of asset integrity services to support the development of Maersk Oil’s offshore operations in an efficient, safe and environmentally responsible manner.
Lloyd's Register will provide support in key areas of operational risk – change management, contractor management, inspection plans and reporting, asset optimization, risk-based assessments and written schemes of examination. Additional areas of technical expertise will also be provided on structural and pipeline integrity management systems, and corrosion monitoring.
“Ensuring consistent standards of integrity services across a network of high-value offshore assets is an increasingly complex task. Operators often face challenges that arise from differing operating regimes across different structures, work cultures and levels of asset maturity,” said James Drummond, VP Asset Integrity and Development Solutions from Lloyd’s Register.
Lloyd’s Register has a long standing relationship with Maersk Oil globally for the provision of integrity and compliance services, and has held the Integrity Contract with Maersk Oil UK since 2005, a testament to the quality of service provided and a commitment to improving the performance of its clients’ operations.
Although a key focus of the contract is to mitigate major threats, Lloyd’s Register experts will provide oversight in to the operation of each asset and also address challenging exploration requirements and specific operational needs.
“We are proud to be working with Maersk Oil to help enable their continued focus on safe production and operations to reduce risk. Lloyd’s Register is one of a very few third-party assurance providers with the diversity of technical expertise to fully support multinationals in this area, and we believe this agreement recognizes that,” highlights Drummond.
Jon R. Murphy has joined the Delmar Systems, Inc. global business development team. Based out of Delmar’s engineering and subsea office in Houston, Texas, Jon will be focused on strengthening and developing Delmar’s relationship with existing and potential new clients.
Jon R. Murphy
Jon has over 30 years of experience in the oil and gas industry, and is a veteran of the United States Marine Corps. Prior to joining Delmar, Murphy served as Director of Marketing and Contracts for Noble Drilling Corporation subsidiaries. “We are pleased to welcome Jon to Delmar,” said John Bodin, Delmar Director of Global Business Development. “His extensive world-wide experience and knowledge will open new and exciting opportunities for Delmar with both traditional drilling contractor contacts and oil and gas operators.”
Delmar specializes in mooring semi-submersible drilling rigs in some of the world’s most challenging environments. Headquartered in Broussard, LA with engineering and subsea services based in Houston, TX, Delmar System, Inc. has provided mooring and subsea installation services for over 48 years to oil and gas regions around the globe, with offices strategically located to serve the offshore industry.
ODE, is a leading international Oil & Gas and Renewables Engineering Consultancy, and an integral part of the DORIS Group. The company provides technical services across the full asset life cycle; from conceptual to detailed engineering of greenfield and brownfield projects, and from asset management through to final decommissioning. ODE has continued and strengthened its excellent relationship with DONG Energy by securing an engineering services and consultancy framework agreement.
Siri Platform. Photo courtesy: DONG Energy
ODE will provide support to DONG Energy’s oil and gas assets across the Danish, Norwegian and UK continental shelves. The scope of work includes front-end engineering, maintenance and modifications, discipline engineering (specialist services), late life and decommissioning and procurement services. The contract will run until 2020 with the possibility to extend to 2022.
The work, which utilises ODE’s full range of consultancy, engineering and operations capabilities, will be carried out from the company’s offices in both London and Great Yarmouth as well as within DONG Energy’s offices and asset locations when required.
ODE Managing Director Peter Godfrey said: “This new contract builds on our six-year relationship with DONG Energy and will ensure that ODE continues to provide value- enhancing support to DONG across its assets”
ODE, an integral part of the DORIS Group, was created in 1978 to support the North Sea oil and gas industry. The company provides worldwide cost effective, technically robust, consulting, engineering, project management and operations support services to the upstream oil and gas, and marine renewables industries.
Eni announces that the naming ceremony of the “Armada Olombendo” floating production, storage and offloading (FPSO) vessel was held this week in Singapore. The FPSO shall operate in Block 15/06, offshore Angola, for the East Hub Development Project. The vessel will soon be ready to sail to its final destination where, once in position, will commence mooring and hook-up operations.
Eni and its partners have reached a key milestone towards achieving the first oil from East Hub Development Project, which is planned by the first half of 2017. This follows the successful stream of start-ups in the West Hub Project, in the same Block 15/06, which is the only Block of those awarded in the 2006 bid round that has achieved production.
The East Hub Development Project encompasses 9 subsea wells, of which 5 are producers and 4 are water injectors, in water depth ranging between 450 and 550 metres. The hydrocarbons which are produced from these wells will be transported via a pipeline system to the FPSO to be treated and stored prior to export.
Eni is the Operator of Block 15/06 with a 36.84% stake. The other partners in the joint venture are Sonangol Pesquisa e Produção (36.84%) and SSI Fifteen Limited (26.32%).
Eni has been present in Angola since 1980 with net current production of 135,000 barrels of oil equivalent per day.
Leading international energy logistics group Peterson Offshore Group BV (“Peterson”),has announced its consolidated results for the 12 months ending 31st December 2015.
Commenting on the Group’s performance Erwin Kooij, CEO of Peterson said:
“Peterson has remained profitable in what continues to be a challenging time for the energy sector. We remain committed to supporting our clients to deliver safe, innovative, cost effective solutions that enable collaboration and drive efficiency in the supply chain. Throughout the downturn we continue to invest in the design of unique concepts, technology, equipment, infrastructure and in our people. In 2015, we committed £3.1m which included new cranes, trucks, trailers and SPMT’s (self-propelled modular transporters).”
The group’s UK based companies, including Peterson UK Ltd, 80:20 Procurement Services, Peterson Freight Management and Streamba Ltd contributed 50% of the group’s operating profit, with Peterson investing in new international opportunities. North Sea revenue1 was down on 2014 at £207m generating profit before tax of £4.4m down 32% on 2014.
We successfully retained existing contracts with Maersk, BP, ENI, Centrica, and were awarded new contracts with TAQA, Transocean and ONE. We are working in close partnership with a number of operators to establish a vessel pool to share resources in the Central & Northern North Sea (CNNS), similar to our long-established and successful model in the Southern North Sea. Our decommissioning facility in Great Yarmouth, which we opened in 2015, is now fully operational, and secured its first substantial decommissioning contract. We were awarded2 two long term contracts to provide logistics support for Statoil’s Dudgeon offshore wind farm; and we are firmly into the operational phase with our nuclear industry business.
We continue to invest to take our North Sea experience overseas. We opened new offices in Trinidad and Malta to support customers in these regions and we successfully secured a number of international logistics projects. Significant investment has been made in expanding the geographic footprint of our procurement business 80:20 and we are now operating in Norway, the Netherlands, Houston and Malta.
Our ongoing commitment to technology is focused on driving efficiency and generating maximum value across our clients’ logistics operations. We made significant investment into broadening our eSuite technologies. With a continued focus on asset utilisation across the industry, our new eHire application provides simple and effective visibility and control over all third party rentals, whether regular or high cost rental; and our receipt, store and pack tools support bar coding and Warehouse Management.
Sitting above all our applications is our unique proprietary technology VOR that seamlessly connects people directly and in real time to inventory and assets throughout the supply chain. VOR provides transparency, from ordering a piece of equipment quickly, to seeing what space is available on a vessel to ship it offshore, enabling better, data driven decisions.
Our people are fundamental to our ability to deliver operational excellence and we increased our headcount by 6% in the last year and currently employ 400 people in the Aberdeen area. We made a number of key appointments to further strengthen our management team and support the next phase of the company's growth.
Our parent company approaches its centenary with a strong balance sheet, this enables us to take a long view, invest for the future and allows our clients to trust in Peterson.”
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1. Revenue, inclusive of vessel charters was down sharply on 2014, mainly driven by the reduction in vessel charter day rates with oversupply of vessels.
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