ON/OFF. Topic: Maritime Offshore. Maritime offshore a growing field of business. Floating hotels for the offshore sector

Transcription

1 Offshore Center Danmark December ON/OFF A news magazine on offshore business in Denmark NEWS Topic: Maritime Offshore Maritime offshore a growing field of business Floating hotels for the offshore sector Offshore sector receives many applications New port-concept involves Danish Niels Winther & Co. Shell thinks big very big SubC Partner designs unique crane for offshore sector Special vessels will exploit wave energy Photo: A2SEA

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3 Welcome The offshore sector conjures up images of platforms on giant legs and large wind turbines at sea. But the huge set-up of floating cranes, barges, supply and personnel vessels and other maritime units needed on permanent installations do not necessarily come to mind. Director Peter Blach All these service and supply vessels, mobile installation vessels and logistic service companies are together called offshore maritime and constitute one of the fields of business where Danish offshore companies have built up critical expertise. Efficiency and flexibility are key words here because the offshore sector can function only if equipment and personnel can be transported to the locations where they are needed on schedule. As the oil and gas installations in the North Sea are developed and still more offshore wind projects are completed on the drawing board, the need rises for base and supply service, towing and erection of offshore wind turbines, logistical solutions and floating accommodation facilities. An example of this is Greenland where, in 2011, 16 ships have been involved solely in the offshore sector at a point in time where production of oil has not even begun. And offshore maritime is a field in which the Danish offshore sector can make itself noticed even more than has so far been the case. The fact that the oil and gas sector and the offshore wind sector are busy is a promise of a bright future and, when one more field of business is added where Danish companies can make their mark globally, we can face the future and have confidence in what it will bring. Kind regards, Peter Blach Next topic: Offshore city Esbjerg Content: FOCUS: Maritime Offshore Maritime offshore a growing field of business Offshore Center Danmark keeps an eye on positive development in offshore sector...6 Floating hotels for the offshore sector Blue Water Shipping and International Shipping Partners collaborate on hotel ships...8 Offshore sector receives many applications People employed in traditional industries apply for offshore jobs...10 New port-concept involves Danish Niels Winther & Co. The Danish port service company team up with Clarksons Plc to offer new port-concept to the offshore renewables industry...11 Shell thinks big very big Oil company about to launch world s greatest floating facility to exploit gigantic gas field north-west of Australia...12 SubC Partner designs unique crane for offshore sector The company has applied for patent on Flex Crane that makes loading of equipment easier...14 Special vessels will exploit wave energy Untraditional, new concept emerges for storing and transporting wave energy...15 Offshore Energy opens many doors Specific initiatives presented at mid-way conference on October Sketches of a new product for the offshore industry Module-based cabinet the result of new collaboration between plastic suppliers and offshore sector...17 Aalborg University Esbjerg launches charm offensive Day of inspiration: Offshore what is that? Offshore sector s attractions explained to teachers and career guides...18 Good results made OWIB a success Record turnout for Offshore center Danmark event on November 9 and 10 resulted in orders and new collaborations across borders...19 Offshore contracts: a supplier should only be left with the liabilities that should belong to him Advise from Law Firm how offshore suppliers can maintain profitability of their contracts...20 Meeting safety requirements in design and assessment of structures Senior Chief Consultant in Ramboll Oil & Gas and Chairman of S-406 Offshore Oil & Gas, John Wægter, is convinced that for many years to come the industry will still have a drive to develop new oil and gas fields and extend the life of existing installations. He underlines that the ISO standard series apply to both new and existing structures. In this article he digs into the ISO design code for fixed steel structures and explains the recommendations set out...22 Greenland - the new frontier Offshore Center Danmark and Danish subcontractors participate at conference at the invitation of Cairns Energy...24 Offshore sector presented with future constructions Offshore Structures of the Future conference offered ideas for weight and cost reductions...25 Welcome to new members...26 Notes & News...28 Names in News...30 Upcoming Offshore Events...31 ON/OFF NEWS - DECEMBER

4 210x297_room for big thoughts.indd 1 12/10/ :57:39 AM Colophon ON/OFF News is the magazine with offshore related news for the Danish offshore industry. The target group is operators, service companies, suppliers, authorities and educational institutions within the oil and gas industry, the offshore wind industry and within the offshore related maritime industry as well as international partners of Offshore Center Danmark. ON/OFF News is published 6 times yearly. Publisher: Offshore Center Danmark Niels Bohrs Vej Esbjerg Denmark Web: news@offshorecenter.dk Phone: Make your company visible in the offshore sector in 2012 ON/OFF Yearbooks The 2 best spaces for the offshore sector in 2012 Director: Peter Blach pb@offshorecenter.dk Editor: Morten Holmager mh@offshorecenter.dk 2009 Yearbook Offshore Industry in Denmark ON/OFF Offshore Oil & Gas Offshore Wind Power Health, Safety, Environment and Quality (HSEQ) Offshore Center Danmark Projects 2010 Yearbook Offshore Industry in Denmark ON/OFF Offshore Oil & Gas Offshore Wind Power 2011 Yearbook Offshore Industry in Denmark ON/OFF Offshore Oil & Gas Offshore Wind Power Editorial staff: Søren Dybdahl sd@offshorecenter.dk Advertisements: Søren Dybdahl sd@offshorecenter.dk Rikke Kofod news@offshorecenter.dk Graphical production: Jan C Design & Kommunikation Print: Chronografisk Isues: 3,000 Next issue: February 2012 ISSN X (print) ISSN (WEB) Articles and news: Please feel free to forward offshore related articles and personnel information to the editor, however responsibility cannot be taken for such material. Articles in ON/OFF News are brought with copyright and may be quoted according to existing existing guidelines/laws. Articles and photos may not be published in other connections, without prior written consent. Subscribtion: Free subscription can be obtained at or by contacting Offshore Center Danmark. COPSØ A/S ON/OFF Yearbook Offshore Industry in Denmark 2009 Offshore Center Danmark Members Members ROOM FOR BIG THOUGHTS The right solutions depend on the creativity, insight and integrity of our employees. That is why we believe it is important to empower ON/OFF them, 2012 embrace their differences and enable them to produce inspired solutions. learn more about ramboll oil & gas and see the list of available jobs on our website OIL & GAS COPSØ A/S ON/OFF Yearbook Offshore Industry in Denmark 2010 Health, Safety, Environment and Quality (HSEQ) Offshore Center Danmark Projects Offshore Center Danmark Photo courtesy of DONG Energy On Off Yearbook Oil & Gas 2012 ON/OFF Yearbook Offshore Industry in Denmark 2011 Health, Safety, Environment and Quality (HSEQ) Offshore Center Danmark Projects Offshore Center Danmark Members ON/OFF 2012 RENEWABLES In future Offshore Center Danmark s Yearbook will be divided into 2 strong and independent publications: one for the oil and gas market and one for the market for sustainable offshore energy. Each publication will focus closely and efficiently on its field, and both publications will be critical in the effort to strengthen and market the Danish offshore sector in Denmark and abroad. Please contact Søren Dybdahl if you need further information on opportunities available for promoting your company to the offshore sector in Søren Dybdahl Phone sd@offshorecenter.dk 4 ON/OFF NEWS - DEC. 2011

5 Maritime offshore a growing field of business Offshore Center Danmark keeps an eye on positive development in offshore sector The offshore sector is one of Denmark s largest industries in terms of turnover and, even though the financial crisis has had an impact on the sector s development in recent years, things are now moving fast again. Positive trends both on the Danish and the international market have brought back optimism to the sector. Growth is present especially in maritime offshore. This business area includes products and services on ships and mobile installations such as supply service, transport and logistics plus transport and installation of offshore wind turbines - a field that is seeing growing demand from abroad. Morten Holmager, Development Manager, Offshore Center Danmark says: Danish suppliers to the offshore wind sector have made up the growth locomotive in the past few years. Danish companies expertise and innovative approach to complex assignments have helped Danish suppliers in their success in obtaining a share of the assignments resulting from the rising number of offshore wind projects in UK, Germany and, most recently, France. Morten Holmager adds: This development will benefit suppliers of products and services in maritime offshore, which is why we re keeping an eye on this field. Limited prospect for growth Companies such as the transport and logistics businesses Blue Water Shipping and Niels Winther & Co., the project company A2SEA and the cable-laying company CT Offshore are the most prominent ones in the maritime offshore sector with their products and services in supply service, towing and handling of equipment plus erection and installation of offshore wind turbines. Most of A2SEA s installation ships are booked several years ahead; the company is doing a great deal of business in maritime offshore. Photo: Tony West ON/OFF NEWS - DECEMBER

6 However, it is not only in offshore wind that the business area offshore maritime is growing. Oil and gas are still extracted in the Danish part of the North Sea and, after a few years with a decrease in total production, it seems that production will grow slightly in Furthermore, the most recent oil finds in the Norwegian part of the North Sea have given rise to great demand. Development Manager Morten Holmager, Offshore Center Danmark, observes that Danish companies expertise and innovative approach to complex assignments help Danish companies have success not least abroad. One of the companies that has seen greater demand is Norwegian Furmanite, that opened a department in Denmark in So far the company has managed the Danish market from Norway, but increasing demand has made it necessary for Furmanite to establish representation in Denmark. Limited market One of the company s business area is mobile machining. By means of mobile equipment for, for instance, drilling, milling and turning, Furmanite is capable of carrying out complex reparations of pipelines, constructions and tanks on site on rigs, installations, FPSOs and service vessels no matter if it is on a stationary installation or a floating unit. Einar Thorén from Furmanite Danmark says: Compared to a country such as Norway, the Danish market is limited, but many assignments have surfaced in recent years. It seems that we re one of the few companies on the market for mobile machining, and we believe this business area offers many opportunities. So we ve decided to establish ourselves in Denmark to be able to get a share of the growth. Room for new companies The Norwegian-owned company specialises in sealing of leaks and surface treatment. Based in Norway, Furmanite has been leading the market in its field for many years. New or interested suppliers can also have their share of the growth in the offshore sector through the development project Offshore Energy, which was initiated by Offshore Center Danmark in collaboration with a range of players in the sector. The aim of the project is to create jobs in the sector; one of the ways in which this is done is through guidance and consultancy services provided for small companies for them to prepare their business plans, objectives and strategies. Michael Ahring Petersen from the subproject Offshore Supply under Offshore Energy explains: The offshore sector is generally a growth area, and this can benefit many companies. But an effort is made also to identify companies that can help increase growth in the sector. One way in which they can do this is through competence screening to determine qualification levels. Offshore Supply has the ability to support strongly the international potential of interested companies. Obviously, this requires companies to offer products relevant to the offshore market as well as it requires that they want to and have the capacity to enter new export markets. Michael Ahring Petersen still receives requests from interested companies, and Offshore Center Danmark also keeps an eye on how things are developing with a view to initiating relevant development projects to support and maintain growth. 6 ON/OFF NEWS - DECEMBER 2011

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8 Floating hotels for the offshore sector Blue Water Shipping and International Shipping Partners collaborate on hotel ships What do you do if you have 100 or 500 offshore employees who are going to spend a couple of months repairing or building an offshore installation and the shore and the nearest hotel are far away? Blue Water Shipping specialises in transport of equipment and personnel in the offshore sector and has faced this challenge many times and, due to increasing activity in, for instance, the offshore wind sector, the shipping company has entered into a new collaboration about hiring out hotel ships. Blue water Shipping has partnered with ISP International Shipping Partners and the two giants in transport and logistics are able to provide hotel ships for many types of assignments where there is a need for accommodation and catering close to projects at sea. The agreement has been named Comfort at Sea and includes the entire ISP 23- vessel fleet, that consists of ferries and hotel ships equipped with accommodation facilities for up to 1,200 crew. ISP is responsible for the technical side of things and for manning the ships while Blue Water Shipping is responsible for international marketing, and the order book is slowly being filled. Amazing start The collaboration between Blue Water Shipping and American ISP has so far resulted in the companies being hired twice for offshore assignments. Since May Siemens Wind Power has chartered Sea Spirit for an offshore wind project in the North Sea and, until November, Canadian EBC-IGLU has chartered Sea Voyager for accommodation for 160 construction workers who are establishing a harbour in Deception Bay in Canada. Because of the Canadian winter this latter assignment must be completed in November. Blue Water Shipping founder and CEO Kurt Skov says: Comfort Sea has had an amazing start after having been established only a few months ago. Having entered into agreements about hiring out 2 vessels in a few months time is very satisfactory. A range of other agreements are being completed, and we re looking forward to developing our collaboration with ISP. He adds: ISP has extensive experience of operating hotel vessels with offshore track records from the Mexican Gulf, where they supplied living quarters in News Orleans after the hurricane Katrina, and in Haiti, where they accommodated local UN workers helping out after the 2010 earthquake. Strong brand Logistical solutions for companies and personnel for offshore wind projects make up a still bigger part of Blue Water Shipping s portfolio, and the hotel ships constitute a natural addition to the company s activities. By collaborating with ISP, Blue Water Shipping will avoid having to invest in the vessels. Kurt Skov says: Our collaboration will result in a strong brand in the offshore sector, and we intend to lead the market in this field. Expects rising demand Offshore Center Danmark warmly welcomes the initiative, and director Peter Blach expects a rising demand for floating hotel facilities as offshore wind projects move farther and farther away from land. Peter Blach observes: Danish companies must think in innovative ways to attract assignments internationally, and the collaboration between ISP and Blue Water Shipping meets the offshore sector s challenges relating to increasing costs of transporting personnel to and from offshore wind projects. An overview of hotel ships for brief or long-term chartering is available at 8 ON/OFF NEWS - DECEMBER 2011

9 BRAZIL the market of opportunities The ability to operate in a market using the local language while displaying awareness and sensitivity regarding cultural aspects are vital to success when forging new business. ABP OFFSHORE focuses on consulting services within management, administration, logistics and procurement for projects within the oil & gas sector. Establish your business in the fastest growing offshore market in the world Position your business well through excellent network Portuguese-speaking service Tailor-made set-up suiting your business ABP OFFSHORE contributes with consultancy services for companies from abroad in the critical startup phase and over a 1-2 year period, until businesses are on a sound footing. Previous experience has covered markets like Singapore, Spain, Portugal and northern Europe, with Brazil as the focal point over the last 3 years and for many years to come. Rua da Assembléia 10 / 1718 Centro - Rio de Janeiro - RJ CEP: Brazil (Brazil) (Cell - Brazil) Sjøgata 4 (312) 0250 OSLO Norway ON/OFF NEWS - SEPTEMBER

10 Offshore sector receives many applications People employed in traditional industries apply for offshore jobs While the offshore sector expects still more business in the coming years, things are different in the more traditional industries such as the iron industry, the machine industry and in manufacture and construction. Unemployment is great in a range of industries, and this has resulted in a number of people wanting to leave the unemployment queue and work offshore. These people are technicians, machine operators and seamen. The company A2SEA specialises in transport and installation of offshore wind turbines and possesses a fleet of installation vessels. CEO Hans Schneider says: The offshore sector is currently growing, and a lot of people are moving from more traditional industries to the field of maritime offshore. In the machine industry and in construction they ve discovered that the offshore sector is an exciting industry with good future prospects. This is evident to us, and many workplaces are currently being moved. Hans Schneider adds: Not much happens in construction, and Danish shipping companies are still laying off a lot of Danes and hiring foreign people instead. A2SEA is still a smaller shipping company compared to other shipping companies, but many people have had their eyes opened to the opportunities in the offshore sector. Recruitment is easier Not only machine engineers, ship s mates and other people from the sea obtain employment in the offshore sector. An equally large number of A2SEA s new people are employed in back office functions, and it is no longer a problem to attract people. Hans Schneider goes on: We re seeing a big difference. We used to have to contact people; now they re contacting us. Hans Schneider adds that, in 4 years, A2SEA s number of staff has increased from 100 people to 300 people. Recently, A2SEA completed the installation of 30 turbines in the Irish Sea for Vattenfall, and the company is in full swing erecting some of the many turbines at London Array, which will constitute the largest offshore wind farm in the world. Several other assignments await in future, and A2SEA is one of the several Danish companies waiting for the results of the Round 3 bidding round in Britain, that is likely to mean more offshore wind projects. Hans Schneider says this may result in bottleneck problems in the coming years, but he also believes the challenge is primarily about solving the emerging capacity and match problem within recruiting. Maintains position Hans Schneider explains: We ve no difficulty in recruiting labour, but it s difficult to find the people with the right qualifications. Applicants may have the right training but not the right experience. This is a problem because there are so few places where they can obtain the right experience. A lot of training happens through on the job training, and that s possible only if you re working on a project. It s hard for us to supplement our staff with new people, because it takes to time to train them. So recruitment is an important effort area for A2SEA. However, A2SEA still leads the market. One of the things they do is to carry out 10 ON/OFF NEWS - DECEMBER 2011

11 Photo: A2SEA New port-concept involves Danish Niels Winther & Co. The Danish port service company team up with Clarksons Plc to offer new port-concept to the offshore renewables industry installations in very low water at London Array. The company secured this assignment because other companies do not have vessels that can operate in such low water. A2SEA succeeded in completing the installation in the Irish Sea 4 weeks earlier than expected. Hans Schneider says: We re using a tried and tested set-up that makes our installations very efficient, and we waste very little time, which is an important competition parameter. Hans Schneider expects A2SEA will grow also in the coming years. A2SEA A/S is a market leading specialist within installation of offshore wind farms. A2SEA s track record includes installation of more than 750 of offshore wind turbines installed worldwide. To support the position as the preferred marine contractor for safe and efficient transport, installation and service of offshore wind farms worldwide A2SEA has ordered a new large installation vessel for delivery in A2SEA is owned 51% by DONG Energy Power and 49% by Siemens Wind Power. The Danish port service company Niels Winther & Co. has joined forces with UK based Clarksons Plc to offer the offshore industry a tailored concept in the UK. The initiative has been welcomed by the industry and involvement in three UK offshore wind farms has already been secured. A central aspect in the new venture is a redefinition of the role of the port agents in the offshore renewable projects. Instead of just handling one-off port calls at a fixed standard tariff, Clarkson Port Services and Niels Winther Shipping offer a complete package that can encompass everything from consultancy services on port selection and logistical solutions to short and long term agency, husbandry, and stevedoring services in the base ports. We felt that there was a need for a dedicated port services company in the UK with experience from the offshore renewables industry and we have been asked by several clients to establish a presence. Clarksons have an extremely strong brand and presence in the UK and share our values so they are the ideal partner for us, says Henrik Otto Jensen, Managing Director of Niels Winther Shipping. Cutting costs The aim is to cut costs in the supply chain and introduce a higher degree of flexibility to the various parties involved in the offshore projects. At the same time the new venture will offer substantial expertise within offshore renewables port services in combination with a strong physical presence in the UK. London-listed Clarksons is a household name in global shipping, particularly known for its broking and research activities. In the UK, Clarksons are represented in a range of ports well positioned for the existing and future offshore wind projects and new offices will be established according to the needs of the industry. Esbjerg-based Niels Winther Shipping is a pioneer within offshore renewables port logistics, where the company has been very active since the Horns Rev I project in At that time Niels Winther handled the full port logistics in Esbjerg, and since then the company has been involved in numerous other offshore projects, including Horns Rev II. In the UK Clarkson Port Services and Niels Winther Shipping are already actively involved in three different projects - London Array, Sheringham Shoal and Lincs and more are expected to follow. ON/OFF NEWS - DECEMBER

12 Shell thinks big very big Oil company about to launch world s greatest floating facility to exploit gigantic gas field north-west of Australia Natural gas will be the new gold in the offshore sector as oil is exploited still more efficiently. Consequently, demand is expected to increase in the coming years. This is the reason that oil company Shell will now invest in the world s largest facility for production and processing of floating natural gas. With its 488 metres, the facility will be about as long as 10 football fields, which makes it by far the largest floating offshore facility in the world. In partnership with Maersk Oil and Gas, Shell is involved in several fields in the North Sea while the new facility is to be used at the other end of the world the Prelude gas field 200 km north-west of Australia in far more impassable waters than the North Sea. Here tough weather conditions and frequent cyclones have so far made the erection of permanent offshore facilities difficult, but Shell is hoping to overcome this problem by means of this gigantic facility, which can be moved when the weather is bad. If the weather becomes too tough, Shell Prelude FLNG can be manoeuvered away from the area until gas extraction is possible again. Volume reduced by 600 times The development of the facility is being done as part of the concept FLNG Floating Liquefied Natural Gas which is about producing and processing natural gas and condensates at the location where it is extracted. By converting natural gas into a liquid immediately after it has been extracted, its volume is reduced by 600 times. However, this requires the gas to be cooled down to 162 degrees, which is a process that has so far been possible only onshore. With it colossal size, Shell Prelude FLNG has room for both the required technology and production capacity to make it capable of extracting gas from, for instance, the Australian Prelude field. This field s weather conditions and geographical location would otherwise make it too complicated and costly to install a system of pipes from the shore to the facility. Great potential This facility has the potential to change completely the way in which we produce natural gas, said Wouter Mering, Shell s manager of LGN development to British magazine The Engineer when the building of the facility was initiated in the spring. Shell s Executive Director Malcolm Brinded added: Our decision to go ahead with this project is a true breakthrough for the LNG industry, giving it a significant Facts on Shell Prelude FNLG Shell Prelude FNLG is a floating production facility designed as a ship that will not just be the world s largest offshore installation but also the world s largest vessel. Length: 488 metres Weight: 600,000 tonnes, including 260,000 tonnes of steel Production capacity: no less than 5.3 million tonnes per annum (mtpa) of liquids: 3.6 mtpa of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG Expected cost: between 7 and 8.7 billion boost to help meet the world s growing demand for the cleanest-burning fossil fuel. The ability to quickly construct and deploy LNG facilities that could be utilized on multiple fields will become critical as global energy demand rises. An impressive number of engineers have so far spent 1.6 million hours developing Shell Prelude FLNG, which will now become a reality at the South Korean Geoje Island Shipyards, which is one of the few shipyards in the world with a dry dock large enough for the enormous construction. It is yet not known at what point in time the facility will be ready for launch. However, the cost might take your breath away: no less than somewhere between 7 and 8.7 billion. 12 ON/OFF NEWS - DECEMBER 2011

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14 SubC Partner designs unique crane for offshore sector The company has taken out a patent on Flex Crane that makes loading of equipment easier On a 1:4 scaled model of the Flex Crane Sales & Marketing Manager Mads Obling Rasmussen, SubC Partner, demonstrates the principles of the crane to a french business delegation visiting Denmark. Inventiveness in the offshore wind sector is great and, as still more countries focus on energy from offshore wind farms, the number of suppliers rises as well. New ideas are developed and new constructions are designed that optimise and improve products and processes. One of the fields in which products are developed and improved has to do with the transfer of equipment and personnel between supply ships and offshore wind turbines. Currents and waves can complicate transfer of personnel and equipment, and the sector is looking for solutions to meet these challenges. This is why Danish company SubC Partner is on the brink on launching an entirely new invention that will ease transfer from supply ships to offshore wind turbines. The company has taken out a patent on the so-called Flex Crane which, when it is mounted on a turbine, can move with the vessel around the turbine, if necessary. Flex Crane s construction is unique in that it is designed somewhat like a bicycle chain, whose links are flexible but also very strong. Because of this design the crane can lift equipment from a transfer vessel, place the crane around the turbine tower and unload the equipment on the other side of the turbine. Significant cost-savings The crane consists of modules, and each module does not weigh more than 50 kilos. For this reason the crane can easily be hoisted from a ship onto the turbine platform and be assembled. This is done in a few hours; then the crane is functional and capable of lifting everything from spare parts to personnel. Tonny Klein, director of SubC Partner s project division, explains: Weight is an important issue when wind turbines are installed especially in the mounting phase. Significant cost-savings will be achieved by the help of this crane compared to having to transport a jackup or a bigger crane to a destination. The Flex Crane construction is one of the visible results of SubC Partner s effort into aluminium constructions, and Tonny Klein believes there are many more opportunities for product development in this field. He says: Originally we began working with aluminium because there was a specific need for this. We were also convinced that a market for aluminium constructions would emerge in future. One advantage of aluminium is that this material is much more flexible than other materials. Only a few types of steel profiles are available, whereas aluminium allows you to design exactly the one that you need. In on the act from the beginning Over the years SubC Partner has also achieved specialised knowledge of working in the splash zone of an offshore wind turbine, and the company is seeing increasing demand as planned projects in Britain, Germany and other European countries are realised. Tonny Klein adds: We re pleased to have been in on the act from the beginning in the offshore wind sector. That means we have some important advantages in the competition with the suppliers that have emerged on the international market in recent years. Our effort into aluminium has made our market bigger and our opportunities better. 14 ON/OFF NEWS - DECEMBER 2011

15 Special vessels will exploit wave energy Untraditional, new concept emerges for storing and transporting wave energy This is what a special vessel for harvesting wave energy could look like. The concept was presented at the Clean Technology 2011 conference in Boston earlier this year. Wave energy is a future energy source, and an entirely untraditional, new concept for harvesting wave energy will now see the light of day. Special vessels are going to replace stationary wave energy plants and will be capable of storing energy in large batteries on board the vessels. The 50 m long special vessels that are to compete with traditional wave energy plants were presented at the Clean Technology 2011 conference in Boston, USA in June this year. The vessels are designed to harvest wave energy by means of rotating buoys fixed to the sides of the vessels. The wave energy vessels will sail to a suitable position, anchor and then generate power by the help of wave energy. When the vessels batteries are fully charged, the vessels will return to a harbour, from where they will transfer energy to the distribution grid onshore. Contrary to stationary wave energy plants, the vessels can be moved to areas with favourable wave conditions or stay in their harbours when the weather is bad. Consequently, wear and tear is a much smaller problem than goes for stationary plants, and wear and tear is one of the major challenges to be overcome by the wave energy sector. Costs can be reduced Costs related to the establishment of the wave energy vessels can be reduced even more if existing vessels are used; they can be rebuilt to fit the new job. Alternatively, barges can be used instead of ships if they are towed from one harbour to another. According to New Scientist magazine, fewer cables need to be laid out for the stationary wave energy plants if these special vessels are put into operation. This will result in cheaper power compared to the wave energy solutions currently at work. Andre Sharon from Boston University and the Frauenhofer institute says in New Scientist: Contrary to traditional wave energy plants, this solution won t require expen- sive sub-sea cables running to the shores. These cables typically cost more than 336,000 per km and so make up a significant part of the costs related to power production at traditional wave energy plants. Andre Sharon has designed a scale test prototype by the help of 3D prints and tested it in relation to a wave energy plant. Data from the test have helped document the fact that the wave energy vessels would be capable of delivering power at a cost of around 0.10 per kwh. This will be cheaper than power delivered from existing wave energy plants, where a kwh costs DKK. Profitable exploitation of wave energy has not yet been achieved, but Danish companies such as Wave Star Energy and DEXA Wave Energy have come far in terms of developing prototypes. According to the Danish wave energy association, more than 1,000 patents have been obtained worldwide, and Danish projects make up a great part of these. However, no Danish suppliers are involved in this special vessel concept. ON/OFF NEWS - DECEMBER

16 Offshore Energy opens many doors Specific initiatives presented at mid-way conference on October 5 The Offshore Energy mid-way conference attracted a high turnout. Visitors were updated on the latest developments of the project. One and a half year s efforts to create growth in the offshore sector now bear fruit. A range of specific initiatives have been taken, and thorough analyses of the sector help indicate where resources should be spent to best bring about new jobs and future-proof the sector. This news emerged after the mid-way conference relating to the development project Offshore Energy on October 5 in Ribe Leisure Centre, where around 50 people were updated on the latest developments of the project. Project Manager Marianne Tølbøll from Offshore Center Danmark has the overall responsibility for the project. She says: The five sub-projects have made good progress in terms of analysing and planning the effort that is to result in exciting, new training programmes and products in the offshore sector and raise employment so that we ll reach our target of creating 7,000 jobs before She adds: Not least have some exciting analyses been initiated of challenges and oportunities in the future offshore sector, and these analyses have helped turn the spotlight on important effort areas. Many doors have been opened, but it s equally important that we can shut some other doors because analyses have revealed there are parts of the offshore sector value chain where Danish companies don t have any chance of growing. Offshore Energy is very useful in terms of showing the sector which direction it should take in future. A series of people spoke at the midway conference. Senior analyst Jakob Stoumann Jensen from Oxford research presented the results of the analysis The Supply of and the Need for Competence Development in the Offshore Energy Sector in Denmark, Norway, Britain and Germany. The report indicates a range of possible effort areas relating to training and recruitment in the offshore sector: - The German market seems to be the most promising market among those examined. The market in northern Germany has difficulty in attracting qualified labour - The customer potential for suppliers of courses and further training lies primarily among small sub-suppliers to the offshore sector - The internationalisation potential for Danish suppliers of oil and gas training programmes seems to be very modest on the attractive, international technical offshore markets Apart from Jakob Stoumann Jensen, the conference featured a speech by associate professor and licentiate in political science Andreas P. Cornett from University of Southern Denmark in Esbjerg. He spoke about the offshore sector s regional significance, and professor and Master 16 ON/OFF NEWS - DECEMBER 2011

17 Sketches of a new product for the offshore industry Module-based cabinet the result of new collaboration between plastic suppliers and offshore sector of Law PhD Bent Ole Gram Mortensen from University of Southern Denmark in Odense explained about legal aspects of future wind farms in Denmark. Offshore Energy is a 3-year development project that is supported by the EU regional fund and South Danish Growth Forum. The next conference will focus on the results from the 5 sub-projects and will take place in the spring Presentations and other material put forward at the mid-way conference on October 5 are available and can be downloaded from dk/præsentationer.asp. An unique collaboration in the offshore sector has brought about a new product to the sector. Initiated by the project Substitution of Materials Offshore a range of plastic suppliers, North Sea operators and suppliers have started developing a module-based multi-purpose cabinet made of robust plastic, that will meet a number of the offshore sector s needs. The multi-purpose cabinet has so far been presented as sketches, but the plan is to find a company, who is interested in participating in the further development and manufacturing of a prototype, before the multi-purpose cabinet is put into production and marketed internationally. The idea of a multi-purpose cabinet in robust plastic is an attempt to introduce other materials than steel, which is otherwise the material most used in the offshore sector. Compared to steel, plastic has the advantage that it doesn t corrode in the offshore environment. The hope is, that the new product will meet specific protection needs in the offshore sector, and hopefully create jobs in the plastic industry in Denmark as well. Bente Nedergaard Christensen from Plast Center Danmark, manager of the subproject Substitution of Materials Offshore, says: Perhaps a cabinet doesn t seem like big news, and is yet to be fully developed, but this is actually the result of a unique collaboration between the offshore industry and the plastic suppliers. Besides that, it is not just a cabinet. One of many suggestions is to supply the cabinet with a heating element and a fan, which are to be powered from solar cells. In this way a temperate atmosphere can be created inside the cabinet, and sensitive equipment can be protected against the harsh corrosive environment offshore. She further adds: Plastic doesn t need to be painted or maintained. This is a huge advantage of cabinets made of plastic compared to cabinets made of steel or aluminum. The first sketches of the new cabinet were presented by the sub-project Substitution of Materials Offshore under the development project Offshore Energy at a mid-way conference on October 5th 2011 in Ribe, Denmark. The multi-purpose cabinet is one of the visible results of an idea generation day last year initiated by Substitution of Materials Offshore, where the offshore sector s need for innovative products was presented, and the plastic industry s ability to meet this need was tested. The results were gathered in a catalogue of ideas for products that can advantageously be manufactured by the help of plastic and plastic composites as a supplement to steel and other metals. The modulebased multi-purpose cabinet was chosen as one focus area, other constructions made of plastic and plastic composites are also being developed. A cabinet that can be adapted to individual needs and purposes will now be marketed in the offshore sector. It is made of robust plastic materials. ON/OFF NEWS - DECEMBER

18 Aalborg University Esbjerg launches charm offensive Day of inspiration: Offshore what is that? Offshore sector s attractions explained to teachers and career guides The offshore sector is an exciting and future-proof industry in which to work. Representatives of the sub-project Recruitment and Profiling under Offshore Energy did their best to convince their guests of this fact when they attended an event on Monday September 19 at Aalborg University Esbjerg. Under the heading Offshore what is that? the guests had the opportunity to learn about drilling for oil and gas in the North Sea and about the huge effort that is done to extract energy from the underground. The guests were told also about the exciting challenges posed by offshore wind and wave energy. Sub-project manager Tove Morell and associate professor Torben Rosenørn from Aalborg University were at the helm and presented the various speakers, and the around 80 participants were encouraged to keep in mind the offshore sector and conceive of it as a career path. This is relevant no matter if you are a student who is about to choose what to study or if you are a teacher or career guide attempting to help students make their choice. Torben Rosenørn said: If we can inspire some of the young people in the grade to train themselves for the offshore sector, that would be great. Our need for bright people will increase if we want to maintain productivity in the North Sea, and we have to make sure they take an interest already when they re very young and still in school. He added: When it comes to what they can do in the classroom, there are many subjects they can delve into, and many fascinating experiments can be made based on knowledge of the offshore sector. Maersk Oil and Gas, Vestas, DONG Energy and Offshore Center Danmark were some of the companies that had been invited to speak about their projects and, by the help of technical drawings and Power Point presentations, the guests were taught about the process on an installation in the North Sea and about how offshore wind turbines and wave energy plants work. A lot of questions were asked before the guests were given a soda and some fruit at the end of the session and had the chance to talk to some of the speakers. The event Offshore- what is that is one of several initiatives taken by the subproject Recruitment and Profiling in the effort to attract more students to Esbjerg. A 24-hour camp about wave energy for young people took place some time ago, and upcoming events are to be found at 18 ON/OFF NEWS - DECEMBER 2011

19 Good results made OWIB a success Record turnout for Offshore center Danmark event on November 9 and 10 resulted in orders and new collaborations across borders Orders for safety equipment, deals on supply of constructions for offshore wind turbine towers, new collaborations across borders and great media interest. The OWIB Offshore Wind International Business2Business Event 2011 was a positive experience for many participants, and several of them secured specific orders at the gathering, which took place in Esbjerg Concert Hall. No fewer than 308 people from 11 countries turned up for the OWIB, where interested manufacturers, suppliers, energy companies and organisations had brief, informal meetings. 1,700 meetings were held in one single day, and many guests from abroad also went on guided tours to some of the Danish offshore sector s key companies and on a helicopter ride to the offshore wind farms Horns Rev 1 and Horns Rev 2. Offshore Center Danmark is responsible for the OWIB. Development Manager Morten Holmager says: We ll now evaluate the results, but we had much positive feedback already in the days immediately after the event. The OWIB isn t a traditional conference; it s a meeting place for players in the offshore wind sector, and the aim is to gather the sector. This has resulted in many new collaborations and specific orders, and a lot of people have begun talking about collaboration in future. Thousands of business cards changed hands during the OWIB, and one of those who made a sale already at the gathering was sales manager Peter Enevoldsen from Procurator. He secured an order for supply of personal safety equipment with the customer s logo from a specific company that had asked to meet Procurator at the OWIB. Peter Enevoldsen said: The reason for us to take part in the OWIB was to meet a lot of companies and acquire new contacts. Many of the people we met today expressed their interest in entering into agreements, so it s been very rewarding for us to be here. Also the German supplier of towers, pipes and tanks Reuther GmbH had several fruitful meetings that CEO Finn Melgaard will follow up on in the immediate future. He said: So far Reuther GmbH has secured only a few orders from the offshore sector, and we were looking to involve ourselves more in that sector. We had 17 planned meetings at the OWIB with companies that we had asked to meet and with companies that wished to meet our company. No later than at the second meeting a company was interested in agreeing on collaboration with us. The offshore sector is interesting to us because - contrary to other sectors the offshore sector is growing, and a deal isn t only about selling a product; it has to do also with new knowledge and collaboration to the benefit of both parties. We wanted to achieve this through our participation in the OWIB. The OWIB took place for the fifth year running. This year the event was organised in collaboration with Invest in Denmark, which is an organisation under the Ministry of Foreign Affairs of Denmark. The aim of the collaboration with Invest in Denmark is to make visible the OWIB in relation to foreign companies interested in establishing themselves in Denmark. Offshore Center Danmark s Morten Holmager says: Invest in Denmark has communicated the message about the OWIB in the countries that have begun to take an interest in offshore wind farms such as France, Germany and China, and it was very positive to have participants from all these 3 countries at the OWIB. I m convinced that we ll see even greater international interest in visiting the OWIB in future, and we ll now embark on preparing the framework for next year s event. Some of those reporting on the OWIB were the Chinese Xinhua News Agency and a French TV-crew a total of 18 invited journalists and photographers - and the event has made it into the headlines in, among others, Chinese media. ON/OFF NEWS - DECEMBER

20 Offshore contracts: a supplier should only be left with the liabilities that should belong to him Advise from Law Firm how offshore suppliers can maintain profitability of their contracts A sub-supplier was asked to take the risk of the customer suspending offshore operations due to a delayed drilling rig. This cost the sub-supplier more than 175,000. It could have been avoided. In a series of three articles Sandroos Law Firm focuses on how offshore suppliers can maintain profitability of their contracts. This article will take you through some tips to enable you to navigate through legal liabilities. According to Bo Sandroos, who is a lawyer specialized in offshore oil and gas contracts and regulations, there are a number of issues in a contract that can mean an increased liability for the supplier if he is not attentive: Defective delivery of goods/services Delayed delivery Product liability Liability for intellectual property rights (such as patents) Damage to property, equipment etc. Death or injury to personnel, staff etc. Liabilities for external events, force majeure, new rules and regulations Liability for events caused by the customer himself Each of these must be dealt with on its own merit. For instance, to minimize the supplier s contractual liability for late delivery, deficient products or defective offshore services, the supplier may seek a limitation of liability.we recommends that this limitation is a percentage of the contract In a series of three articles we will focus on how offshore suppliers can maintain profitability on their contracts. This article deals with securing payment. In the next two issues of ON/OFF News Bo Sandroos will provide some tips to enable you to navigate through legal liabilities and protection of intellectual property in the offshore oil and gas business. price, a percentage of the last year s turnover under the contract, or a fixed amount. Often this can be justified, e.g. on the grounds that the component being delivered is a small part of a large project (and hence liability should not be unreasonably large). Consequential or indirect damage, such as the customer s loss of profits, should always be avoided, Bo Sandroos explains. For damage to property, equipment and facilities, and for the liability for deaths or injuries to personnel of both parties, most contracts contain the knock-forknock provisions. According to these, each party is responsible for damage to his own property and injury to his own staff. This is in principle irrespective of who has caused the damage or injury, or how or where it took place. This avoids long and difficult discussions of what happened, why was it not avoided, who is to blame, who should compensate the other, how the loss should be calculated etc. According to Bo Sandroos, this principle is sound and efficient and ensures that offshore operations are not disturbed by protracted discussions and lawsuits. The liabilities are supplemented by insurance that cover each party s exposure. Here, often the supplier s need for limitation of liability is covered by the knock-forknock principle and the corresponding insurances. Still, the supplier may ask for a limitation similar to those requested for other liabilities. What about the situation where the customer suspends the contract, e.g. for a week (or for three months) this has a cost impact on the supplier; who should carry that cost? According to Bo Sandroos it depends, primarily on what or who has caused the suspension. Often the suspension is decided by the customer (for operational reasons) or by external events. In these cases the supplier should ask that his costs of suspending work be covered, e.g. by a provision as FIG 1. Another piece of advice for sub-suppliers is to get started early. The customer will often demand a back-to-back contract, i.e. impose on the sub-supplier the exact terms he signed with his customer. If you are involved in the project late, it can be 20 ON/OFF NEWS - DECEMBER 2011