Annual Report
2015
20 15
Oil Gas Denmark is the upstream, oil and gas industry organization in Denmark Oil Gas Denmark is a non-profit, member driven organization representing all types of companies operating in or supplying goods or providing services to the Danish oil and gas industry, both onshore and offshore Denmark. Oil Gas Denmark is striving to
Our strategic aims are to
• Enable the upstream oil and gas sector to enhance value for the industry and society • Be the trusted voice of the Danish oil and gas sector, promoting understanding and recognition of the sector’s role in the Danish society • Develop and represent sector views, optimize business oppor tunities, develop/support new initiatives to strengthen HSE, and strive to enhance value creation for the sector and society
• Continuously develop the sector • Work for enhancement of health safety and environment • Raise the positive profile of the industry and ensuring a skilled labour force • Support the Danish industry supply chain
We will work in line with our values which are • Meeting the industry needs by engaging our members and stake holders and seeking impact • Remaining focused as a lean and agile organization Oil Gas Den mark is the leading upstream, oil and gas industry organization in Denmark • Promoting a learning culture
Table of contents 6/ 8/ 10/ 12/ 4
Foreword by Martin Næsby, Managing Director
Board of Directors
Highlights of 2015: Troels Albrechtsen, Chairman
Highlights of 2015: Verner Andersen, Vice Chairman
Oil Gas Denmark — Annual Report 2015
Table of contents
14/ 26/ 28/ 30/ 32/
Key achievements of 2015
Financial performance 2015
Current members
Organization
Committee, Subcommittee and workgroup members
Annual Report 2015 — Oil Gas Denmark
5
The oil price continued to fall in 2015. The effect on the global oil and gas industry at large has been profound and this also applies to the Danish oil and gas industry. The oil companies have struggled with reduced income and in creasing cost of maintenance and production cost on top of issues related to ageing facilities and difficult fields. The supplier industry has been caught in a downward spiral of reductions of new orders and demands for reduced prices for ongoing and new work. Unfortunately, in all camps reductions in work force has been the inescapable consequence. It is with regret that we see skilled employ ees leaving the industry. At the same time and throughout the year, our dialogue with the Danish Government on a long term strategy for the North Sea has continued with large resources put into the work by authorities, oil companies and suppli er companies alike. Oil Gas Denmark has continued its role as facilitator and driver of the processes with limited external resources. The strategy work has required not only dedication but also – and in particular – a substan tial effort from our members, including participation in a large number of meetings, providing of data, discussions, report writing etc.
6
Oil Gas Denmark — Annual Report 2015
It is expected that the report will be released in 2016. I would like to thank all members for their contributions and continued support to the process. Especially I would like to commend the large number of companies which have – despite the difficult times – allocated key person nel to the Committees and work groups. Consolidation of Oil Gas Denmark has been secured in 2015 as the General Assembly approved alignment of procedures and Articles of Association. It is with great satisfaction that this work has been finalized with a good and operational result. It has from the very beginning of Oil Gas Denmark been our ambition to be the trusted voice of the Danish oil and gas sector, promoting under standing and recognition of the sector’s role in the Danish society. This ambition is being fulfilled with the consoli dation. Establishing Oil Gas Denmark’s office in Esbjerg has been finalized with a good result. Thereby several strategic goals have been achieved, including strengthening of the HSE collaboration in the industry, facilitation of the im plementation OPITO as the safety training standard in
Foreword by Martin Næsby, Managing Director
“Especially I would like to commend the large number of companies which have – despite the difficult times – allocated key personnel to the Committees and work groups”
the Danish Sector of the North Sea and in general Oil Gas Denmark’s presence in Energymetropol Esbjerg, in the southern region of Denmark. Other activities have been kicked off by the office, including among other a ‘lessons learned’ web site, HSE network for the industry etc.
In April the industry gathered in Esbjerg for Oil Gas Denmark’s annual offshore safety Conference, Task Force Zero. This signi ficant industry event has truly become the forum where the in dustry is discussing safety leadership, attracting among other authorities, academia, international participants etc.
Despite the considerable pressure the industry is facing at the moment, the membership base for Oil Gas Den mark has been retained. We thank our members for the support. We hope that among other finalization of the 7th Licensing Round and the implementation of the long term strategy will give Oil Gas Denmark an opportunity to enable the upstream oil and gas sector to further en hance value for the industry and society.
The Oil and Gas Summit in October naturally centered on the development in the oil price and the effect that has had on all parts of the oil industry both domestically and abroad. The main message from most professional actors in the industry was that the industry has lived with var iations – also large ones – in the oil price over the last 50 years. However, the need to look for incentives and to make the required decisions was also evident.
The EU Safety Directive was implemented timely in Dan ish legislation in July 2015 with a satisfying result. The col laboration with Danish Working Environment Authority (‘Arbejdstilsynet’) and OGD's HSE Committee has been further enhanced, including implementation of OPITO. Oil Gas Denmark has in collaboration with the Commu nication Committee continued development of the com munication strategy. Media presence during 2015 has been satisfactory.
Oil Gas Denmark has during 2015 set a direction for 2016 with due respect for the general and very challenging fi nancial situation in the industry. Oil Gas Denmark relies on its membership for support, input and advice. We will strive to continue the member-focused oil and gas indus try organization. We look forward to overcoming the challenges together with you during 2016.
Annual Report 2015 — Oil Gas Denmark
7
Board of Directors
Troels Albrechtsen
Sjur Arneson
Troels is Head of Corporate Technology and Projects. He holds an Msc in Geology from Copenhagen Univer sity. Troels has held a number of managerial positions with Maersk Oil in UK, Qatar and Denmark.
Sjur has more than 20 years of experience in produc tion and reservoir management, planning of devel opment and production, reservoir modelling and un certainty analysis from both Norwegian and foreign companies. Sjur has an MSc in petroleum technology from the NTNU.
Verner Andersen
Flemming Horn Nielsen
Verner is Vice President of Semco Maritimes Opera tion Support Division. His background is an Electrical engineer. He joined Semco Maritime after having held a number of managerial positions in various offshore companies in Scandinavia.
Flemming is responsible for operated licenses. He started in the industry 26 years ago and has had vari ous technical and managerial positions including cross posted to Holland, Qatar and UK in Maersk Oil and DONG.
Senior Vice President, Maersk Oil, Chairman of Oil Gas Danmark
Vice President, Semco Maritime Vice Chairman of Oil Gas Denmark
8
Oil Gas Denmark — Annual Report 2015
Director Production and Reserves/VNG Danmark
Senior Vice President in DONG Oil & Gas
Kim Johnsen
John Sørensen
Kim is responsible for global technical sales in Welltec A/S. Kim has a PhD in engineering from the Technical University of Denmark, and has a background from dif ferent commercial and strategy management positions in McKinsey & Company, Schneider Electric and Imple ment Consulting Group.
John has more than 27 years of experience from the global oil and gas industry. He has contributed to driv ing Ramboll Oil & Gas’ growth with close to 1,000 em ployees based at ten offices in Denmark, Norway, Qatar, Abu Dhabi, India and the UK.
Director with Welltec A/S
Managing Director Ramboll Oil & Gas
Anders Nymann
Director of Hess Denmark Aps
Anders has an MSc in Engineering from the Technical University of Denmark and has worked in various off shore and onshore roles for Hess in the UK and Den mark.
Annual Report 2015 — Oil Gas Denmark
9
Chairman, Statement
“For me 2015 is a year where collaboration was essential. Industry-wide, we have been standing together in a tough time and we have taken constructive steps in securing the foundation for the future” With the challenges presented by the fall in oil prices and the resulting instability in the oil industry, in the last year, it is important that we keep up the good work and focus on our shared goal: to unlock the potential of the Danish North Sea and increase the value for all parties – from operators and suppliers to authorities and government. Realising the resource potential and value creation are the key drivers behind our work in Oil Gas Denmark. We want to find the best way to optimise the value in the Danish North Sea. We know that several billion barrels of oil and gas can be recovered however, how to extract it efficiently and maximise benefit to society is not an easy path. The strategy work, initiated by the Danish govern ment and done in collaboration with industry and au thorities this past year has resulted in a big step forward in establishing a common ground and good foundation to build on. Lately, there has been intense debate about the future of the North Sea, triggered by a number of significant in frastructure and project announcements. Renewal and maintenance of aging infrastructure is costly but also cru cial if we want to extract the most value out of the Danish North Sea. Without central hub facilities, where new ex ploration discoveries can be linked to, we will lose out on significant potential. Similarly, it is important that industry and government create conditions where we can extract also more mar ginal resources. Reducing the cost base in the industry provides an opportunity to make a larger share of the re maining barrels profitable and thereby transition to va lue generation. Also, here the full supply chain has a role to play.
Even though we increased our focus on cost reduction and value creation, we must remember that strong safe ty performance is our license to operate and we should all have safety at the centre of attention – from the engi neer’s first design drawing to the offshore worker turning a valve or an office employee drafting a new procedure. Safety has always and will always be vital for our indus try. I am proud that we, in Oil Gas Denmark, have started a new collaboration with the Metro Company where we can share learnings and best practices, collectively gen erated by the industry over half a century. Quoting the Danish Minister for Employment: The offshore industry is a fine example of how far one can come when the lead ership take charge of a professional safety culture where one learns from mistakes and prevent accidents. For me 2015 is a year where collaboration was essential. Industry-wide, we have been standing together in a tough time and we have taken constructive steps in securing the foundation for the future. 2016 will be a defining year for the oil and gas business in Denmark as many important decisions are on the table. We have a lot of hard work ahead of us. In Oil Gas Den mark, the Danish oil and gas industry has established one voice and we know why we are here – to create long term value for both industry and society.
Troels Albrechtsen Chairman Oil Gas Denmark
Annual Report 2015 — Oil Gas Denmark
11
Verner Andersen, Vice Chairman
“The need for cooperation between oil companies and service industry has never been more important than it is today”
2015 has been a very tough year for the service industry. The levels of operator investment and activity have been low, and unfortunately this has had a direct knock-on ef fect resulting in lower order intake and consequently re dundancies in the service industry. Thus, the oil industry is challenged both in respect of lack of incentives for fur ther investments and the low oil price.
Throughout 2015 Oil Gas Denmark and member organi zations have worked dedicated to ensure, that the North Sea strategy report will launch the initiatives to ensure a Danish oil industry in the future. I cannot stress enough the importance of being represented as one industry in a process like this.
We can then be proud and pleased that the accident fre quency rate in the oil and gas industry is the second low est in 10 years. Not the least due to the strengthened col laboration in Oil Gas Denmark.
The future certainly will not be less challenging for our industry and will require our full attention. The need for cooperation between oil companies and service industry and between the entire sector and the authorities has never been more important than it is today.
What will 2016 and the future bring? We still have oil and gas reserves in the underground which should be ex tracted at some point. Also existing installations are still to be maintained and optimised, so the service industry and the oil companies will have to get together and think innovatively in terms of solutions that can reduce costs, preserve jobs and ensure a high level of safety.
Verner Andersen Vice Chairman Oil Gas Denmark
Annual Report 2015 — Oil Gas Denmark
13
Key Achievements in 2015 Organization Changes of Oil Gas Denmark’s governing articles and procedures
New Offices At the Annual General Meeting in 2014 it was decided to expand Oil Gas Denmark to Esbjerg partly in order to se cure local presence, to establish a closer collaboration in the health and safety area and lastly to establish an entity to secure implementation of a new scheme on the basic offshore safety training. Oil Gas Denmark’s Esbjerg Office has now been fully operational for more than a year. The focus for our Esbjerg office is mostly operational sup port e.g. sharing of incident reporting, lessons learned, new legislation, procedures, safety tools, safety statistic, networking etc. with the overall ambition to improve safety performance and to reduce cost. The head quarter in Copenhagen moved from Knabro stræde 30 ground floor in 2015, to the first floor in the same building. The relocation of the office was done due to the need to fit in more working stations to cater for a significantly higher workload within the organization as a direct consequence among other of the ongoing long term strategy work but also the general increase in activ ities.
From the left: Jesper Sjørvad, Johnny Søtrup, Martin Næsby
14
Oil Gas Denmark — Annual Report 2015
As the organization has been settled, the Board of Direc tors suggested an amendment of Oil Gas Denmark's Ar ticles of Association (AoA) at the General Assembly. The goal was to streamline the articles and to secure a similar governance structure for the two councils. The changes in the AoA were adapted unanimously and subsequently changes in the rules of procedure for the supplier and oil company councils were adapted.
Key Achievements in 2015
Sector development
Skills and Capabilities
Establishment of a Long Term North Sea Strategy has in 2015 been the top priority. In April 2014, the government released the Terms of Reference in relation to develop ment of a Long Term Strategy for the oil and gas produc tion from the North Sea. The strategy work was kicked off after the summer 2014. The primary focus for the strate gy work has been to establish a common understanding of the size of the remaining potential and how to over come barriers. Throughout 2015, substantial resources in the member companies have been allocated toward the establishment of this strategy. A number of workgroups governed by Oil Gas Denmark were established and a high number of qualified subject matter experts from Oil Gas Denmark’s member companies were allocated to the work groups. Similarly, a large number of highly qualified experts from the authorities were allocated to the work.
The work in Oil Gas Denmark’s Skills and Capabilities Committee has in 2015 largely been focused around the formulation of the North Sea strategy. Oil Gas Denmark has been project manager with focus on how to secure skilled workers to the industry. The work toward the strategy has been handled by the Committee in close cooperation with the Danish ministry for Business and Growth. A comprehensive analysis has in this collabora tion been prepared.
The strategy work has focused on four work streams: • The potential for recovery of oil and gas from the Danish part of the North Sea, including collection and aggrega tion of exploration data as well as collection and aggrega tion of data regarding the technological potential • Coordination of renewal and renovation of the existing infrastructure for production, treatment and transport of oil and gas • Possibilities for securing that a highly educated work force with the necessary competencies for exploration, recovery and connected industry is available also in the future, including collection and aggregation of data as regards the work force • Framework for future exploration
World Careers
Another part of the comprehensive work has been focus ing on image analysis with specific focus on five different core target groups among students. A final part of the study has been a socio-economic analysis of the oil & gas industry's contribution to the Danish society.
In addition to working with the North Sea strategy, the Oil Gas Denmark Committee on Skills and Capabilities has as previous years in cooperation with the World Ca reers employer branding campaign participated in two offshore events – one in Copenhagen and one in Esbjerg. Despite the general crisis in the industry, these events drew full houses and with great positive feedback from students.
The analysis shall result in a report containing recommen dations to the Government. Scoping of the strategy work, securing and allocation of resources, preparation of data, collection, submission and aggregations of same as well as drafting and discussions have been time consuming during 2015. In order to secure a thorough understanding of the potential and the barriers it has been necessary to extend the timeline for finalizing the work. It is expected that the recommendations to the Danish Government will be presented during 2016.
Annual Report 2015 — Oil Gas Denmark
15
Key Achievements in 2015
HSE:Health Safety Environment HSE Committee
Health and Safety Subcommittee
The HSE Committee is aiming at creating a still closer col laboration between companies in the oil and gas industry with the overall objective to work for a safe and environ mentally responsible operation in the most efficient way by retaining and establishing collaboration between all companies in the oil and gas sector.
The overall objective for Oil Gas Denmark’s health and safety activities has been to further develop the indus try’s vision of “Working Together”. That vision was en hanced following the TFZ Safety Conference 2014, where the theme for the first time was verbalized by F1 motor sport executive Mark Gallagher.
Oil Gas Denmark’s HSE Committee has in 2015 estab lished a number of goals to be pursued in the work car ried out in the Health and Safety Subcommittee and the Environmental Subcommittee including several task workgroups. For 2015 the primary target was implemen tation of the OPITO safety training standard in the Danish Continental Shelf. The HSE Committee has throughout 2015 focused on establishing collaboration in a number of new areas as noted in the brief underneath regarding the health and safety related activities and environmen tal activities.
Oil Gas Denmark’s Health and Safety Subcommittee focuses on safety which among other will result in an enhanced collaboration among operators as well as en hanced collaboration among suppliers, operators and au thorities both from a tactical and operational perspective. During 2015 the Health and Safety Subcommittee has held quarterly meetings reviewing the ongoing projects initiated by Oil Gas Denmark. The Health and Safety Sub committee serves as the focal point for the health and safety activities on an operational basis.
In 2015 a number of replacements of company represent atives have taken place in the HSE Committee. The HSE Committee chairman Finn Primdahl Brodersen from DONG Oil & Gas stepped down due to retirement and was replaced by Jacob Heinricy Jensen from DONG Oil & Gas. Vice chairman from Maersk Oil Jonathan Smith has been replaced by Simon Byrne from Maersk Oil. Børge Mathiesen from Schlumberger was replaced by Jeffrey Samuelsen from Schlumberger and Søren Risgaard Jeppe sen from Maersk Drilling was replaced by Bent Nielsen from Maersk Drilling. Oil Gas Denmark is thankful for the contribution from members stepping down and welcomes new members in the HSE Committee.
16
Oil Gas Denmark — Annual Report 2015
Safe Recruitment tool During 2015 the HS Subcommittee has worked together with “Sea Health” on developing a tool to assist the va rious companies in recruiting safety minded personnel. The tool is not yet fully developed but the industry is looking forward to see the final result from Sea Health.
Cargo/Rigger Handbook The aim is to align procedures and best practice within the industry regarding rigging, lifting and cargo handling, HS Subcommittee has communicated and negotiated with NSL regarding publishing common handbooks for best practice on the Danish continental shelf. The process is ongoing but no final decision has been made.
Key Achievements in 2015
From the left: Morten Nordtofte Gustavsen, Hans Vang, Martin Næsby, Finn Brodersen
Oil Gas Denmark’s HSE Network
Offshore Safety Award
The focus on "Working Together" has in 2015 been cen tral for the industry as means to achieve the highest possi ble safety performance. To strengthen this collaboration among member companies, Oil Gas Denmark established a HSE Network Group. This network serves as a forum for all HSE representatives in the industry to share informa tion, build alliances, get knowledge and as a place for Oil Gas Denmark to inform about our activities.
As in previous years, at the Annual Safety Conference 2015, Oil Gas Denmark presented two safety awards. One award (personal award) was given to a person who had done something extraordinary to improve employee safety behavior or reduce the likelihood of accidents. The main award consisted of a bronze sculpture, DKK 10.000, generously sponsored by Shell and a safety award di ploma. The award was handed over to Umberto Vergine from Saipem.
The purpose of the OGD HSE Network is to strengthen the information sharing and knowledge about legislation, methods, safety tools and achievements gained by the in dustry, and also to share lessons learned from handling of risks and impacts caused by the oil and gas activities, all with the aim to work towards safe workplaces across the oil companies, service industry and supplier companies. The HSE Network has four ordinary meetings a year. All meetings are facilitated at a member company. At all meetings, themes are discussed and speakers arranged who give their point of view regarding the actual theme. In 2015 one networking meeting was held. At that meeting, the “bowtie” safety analysis tool was discussed.
The second award – the company safety award was given to Fanø Kranservice for their initiative to conduct safety courses and inviting colleagues from other companies to participate for free. The company safety award was generously sponsored by Roxtec and consisted of a safety award diploma. All companies in the industry have had the opportunity to nominate candidates for both persons and companies for the Awards.
Annual Report 2015 — Oil Gas Denmark
17
Key Achievements in 2015
Safety Training Oil Gas Denmark has developed guidelines for basic safety training on the Danish continental shelf in both Danish and English. To ensure a common Safety Standard and in order to be aligned with the other North Sea countries, the guide lines recommend that the courses from OPITO (BOSIET and FOET) will be the standard on the Danish continental shelf in the future. The guidelines are under review by au thorities, and Oil Gas Denmark is ready to implement and distribute to relevant companies and organizations. This process is still ongoing with participation from ope rators, training vendors and unions.
Helicopter Safe Transport Group Helicopter Safe Transport Workgroup is a forum repre senting the oil and gas operators and helicopter opera tors on the Danish continental shelf with the purpose of increasing the safety in helicopter transport, sharing knowledge and learnings, and to be the industry voice in relation to authorities. The Helicopter Safe Transport Work Group is representing the operators in the Danish sector and the two helicopter operators. Meetings have been held with relevant authori ties, discussing a number of issues related to safe operation of helicopter services on the Danish continental shelf. This year the Helicopter Safe Transport Work Group has had special focus on adjustments related to UK CAA initiatives based on Cap 1145. The biggest issue has been which equip ment should be used as EBS (Emergency Breathing System) and a constructive dialogue with the Danish authorities has been kept during meetings conducted in 2015.
Lessons learned Oil Gas Denmark has developed a forum for sharing knowledge and learnings from incidents. The objective of this collaboration is to enable operators and service
18
Oil Gas Denmark — Annual Report 2015
and supplier companies to learn from each other’s expe riences from incidents and observations to increase the proactive actions for prevention of incidents. The lessons learned forum is in operation and located on Oil Gas Denmark’s website to which each member of Oil Gas Denmark sends their lessons learned. Oil Gas Denmark anonymizes the received “Lessons Learned” to ensure that the focus is on: What happened and what did we learn?
Incident statistics For some time, Oil Gas Denmark has been developing a safety performance statistic covering the Danish continen tal shelf according to IOGP definitions. With this statistics, the member companies should be able to compare numbers and levels of incidents information given from Danish Working Environment Authority and IOGP and to monitor the trend of incidents according to IOGP standard. The incident statistic is an information tool to all mem bers of Oil Gas Denmark illustrating the annual figures for numbers of incidents on the Danish continental shelf. The statistics will be posted on Oil Gas Denmark’s website.
Environmental Subcommittee The Environmental Subcommittee aims at providing cooperation between the companies in the oil and gas industry and liaise with authorities (or regulators) in order to secure that the environmental footprint of the activities are reduced and in compliance with regulatory requirements. The Committee has focused on a number of regulatory and new legislative initiatives from OSPAR and EU such as implementation of RBA (Risk Based Ap proach) and Environmental Emergency Response where the Committee has constructively participated in the Danish implementation of the initiatives. Additionally the Subcommittee has been following the implementation of a new BREF (Best available technolo
Key Achievements in 2015
gy REFerence document) for Large Combustions Plants (LCP) which will affect the industry because of new emis sion standards. NORM waste handling is another area where the industry is working together with relevant central and local authorities to identify a permanent dis posal. Overall, the Environmental Committee has throughout the year worked on aligning position and continuously supporting the dialogue between authorities and compa nies on among others the issues listed below.
Ad hoc work group for BREF for hydrocarbon exploration and production One of the major issues that the Environmental Subcom mittee has dealt with in 2015 and which will continue to be high on the agenda in 2016, is the European Commission’s proposal on formulating a BREF for hydrocarbon explora tion and production. The European Commission launched in 2015 the initiative and established a technical working group with the goal of creating a common EU BREF stand ard for Hydrocarbon exploration and production. The European Commission held the first technical work ing group meeting in October 2015 in Bruxelles. This meeting clarified a strong and unified opinion against the initiative among EU member states, national authorities, companies and industry organizations within the indu stry, including Oil Gas Denmark. The main arguments throughout the process have been that the industry is very well covered by already existing industry standards, international conventions like OSPAR and regulatory collaboration like EUOAG. Establishing a BREF on hydro carbon exploration and production would in its current format not create value or a more environmentally safe industry but only add bureaucracy and uncertainty to the regulatory framework. Oil Gas Denmark has contin uously advocated for alignment on this message. Oil Gas Denmark has along with sister organizations and IOGP coordinated and aligned its messages in order to secure the strongest possible voice of the industry.
EU-ETS The EU-ETS is being revised in order to setup the frame work for regulation of CO2 inside EU for the period 20212030. The Environmental Committee is following the work and is advocating for a simplified model that treats oil and gas production equally and promotes development of energy efficient oil and gas installations.
FOGA – an activity map Oil Gas Denmark has for a number of years in collabora tion with FOGA secured accumulation and distribution of accumulated and distributed information about ac tivities within the oil and gas sector in order to prevent and avoid accidents relating to offshore activities. Each week, FOGA distributes this information to fishermen and o therinterested parties in various countries in many different languages, both via regular mail, email and this website. F OGA's activity map is financed by Oil Gas Den mark. More information om http://www.foga.dk
Oil Gas Denmark’s Legal Committee Legal Committee has been established with the aim of supporting Oil Gas Denmark with legal focus areas with in the objective of Oil Gas Denmark, and the Committee's work is overall based in Oil Gas Denmark's strategy. For example, the Committee assists Oil Gas Denmark's secre tariat with public consultations, communicates Oil Gas Denmark's position on key legal issues, raises legal issues of common interest with the authorities or other relevant stakeholders and facilitates cross learning between mem bers of Oil Gas Denmark. Thus, a Legal Network is being planned. The Committee also maintains awareness of Oil Gas Denmark's competition compliance policy among the members.
Annual Report 2015 — Oil Gas Denmark
19
Key Achievements in 2015
External Engagement Oil Gas Denmark’s Communication Committee Key role of the Communication Committee is to coordi nate positions and prepare for media activity. All com munication strategies and significant activities are thus discussed and coordinated by the Committee. Oil Gas Denmark has been significantly visible in the me dia throughout 2015. The media attention has been cen tered on the low oil prices, the challenges in the North Sea and especially the Long term Strategy for the North Sea. A large number of interviews have been carried out on these topics in the major Danish morning dailies, in the specialized media and television.
Public hearings and consultations During 2015, Oil Gas Denmark has continuously taken part in the political process by responding to relevant pub lic hearings. Thus, Oil Gas Denmark has in 2015 formally responded to four public hearings in the environmental field. All Oil Gas Denmark responses have been coordinat ed in Oil Gas Denmark’s Legal Committee and with the subject matter experts to secure a common position be tween the member companies and Oil Gas Denmark.
Political Engagement As part of Oil Gas Denmark’s political engagement strate gy, a number of meetings have been held with politicians and officials from the government, Danish Parliament and regional/local authorities. These meetings have pro vided unique opportunities to present sector views and explain among other the value creation by the industry and political perspective in connection with the ongoing formulation of a long term strategy for commercial ex traction of oil and gas from the Danish part of the North
20
Oil Gas Denmark — Annual Report 2015
Sea. Aside from establishing a better understanding of the oil and gas sector, this political engagement has also served as a way to constitute Oil Gas Denmark as the le gitimate voice of the oil and gas industry.
Partnering and recognition il Gas Denmark has in a number of organizations and O forums been invited to take seat as the representative of the Danish oil and gas industry. Official Oil Gas Denmark seats include among other: • Board of directors at the Danish National Committee under World Petroleum Council • Offshore Safety Council • Advisory Board at SCIENCE, University of Copenhagen • Advisory Board at Offshoreenergy.dk • Advisory Board at CMSS • Forskningspolitisk Kontaktudvalg, Ministry of Science Innovation and Higher Education • IOGP’s EU Committee • IOGP’s Safety Committee • IOGP’s Communications Committee
Forum for Better Environmental Regulation Forum for Better Environmental Regulation was estab lished with the purpose of offering a cross ministerial co ordination on regulation of various environmental issues in the oil and gas industry. In addition to representatives from the oil and gas operators and service companies, representatives from Danish Environmental Protection Agency (DEPA), Danish Energy Agency (DEA) and Danish Nature Agency (DNA) have been invited to attend this forum. Issues like NORM waste from oil and gas produc tion, Hydrocarbon BREF, Marine Strategy Directive, dou ble regulation and Environmental reporting are relevant subjects for this forum due to the cross ministerial nature of the initiative.
Key Achievements in 2015
Publications OGD annual Magazine
Environmental status report
As in previous years, Oil Gas Denmark published its annu al magazine on 21 October 2015 at the day for Oil Gas Den mark’s Oil & Gas Summit. The 2015 magazine with the title “The North Sea – energy, jobs, taxes” focused on the value that the industry generates for the Danish society.
In November 2015, Oil Gas Denmark’s Environmental Subcommittee finalized the second Environmental sta tus report, prepared in collaboration across the industry. Focus in the report was the environmental impact from drilling activities and the related regulation of the indu stry. The report has, in addition to the theme, a data pre sentation chapter where environmental data is presented. The report has been distributed to all relevant government authorities and members of the Danish Parliament.
The magazine has been widely distributed with morning daily Jyllands Posten, distributed widely in Copenhagen airport, at Hotels in Esbjerg, educational institutions, min istries and mailed directly to a large number of high level stakeholders on national, regional and local level. Also, the magazine has been distributed at relevant offshore exhibi tions such as OTC in Houston.
Task Force ZERO Interview magazine As part of the TFZ Safety Conference, a special conference magazine was published on 15 April 2015. In addition to all relevant information in regard to the present con ference, the magazine also included interviews with all conference speakers. Following the conference, the maga zine was printed only comprising the 10 interviews from 2015. Following the conference, the magazine has been used to state our commitment to safety. All publications can be found at Oil Gas Denmark’s web site www.oilgasdenmark.dk
Annual Report 2015 — Oil Gas Denmark
21
Key Achievements in 2015
Meetings and Conferences Core Oil Gas Denmark activities are our main conferen ces, including the Annual Safety Conference (Task Force Zero) which was held for the 9th time in April 2015 and the Oil & Gas Summit held for the third time in October 2015. These two conferences have turned into Oil Gas Denmark’s flagships for safety leadership and oil and gas politics, respectively.
Oil & Gas Summit At the Oil & Gas Summit 2015, the theme was the chang ing market. The objective for the conference outlined that the recent years declining production, ageing facili ties, increasing operational costs and a drop in oil prices have been the reality for the oil and gas sector causing se rious market adjustments.
22
Oil Gas Denmark — Annual Report 2015
At the Oil & Gas Summit the aim was to examine what effects the market changes were having on the industry and what this means in regard to regulation, challenges and new possibilities by seeking to find an answer to the question: What is the future for the Danish North Sea? The Oil & Gas Summit attracted around 350 delegates in 2015; around 40 pct. of the attendees came from the government administration and external stakehold ers. The Oil & Gas Summit was once again moderated by journalist Martin Breum who due to his knowledge about the oil and gas sector managed to establish a con structive and positive dialogue around the challenges the oil and gas sector are facing at the moment.
Key Achievements in 2015
TFZ safety conference In an industry where people often work under extremely harsh conditions, the issue of safety is often being chal lenged. At the Task Force Zero conference in 2015 the theme ‘Working together’ was chosen to underline the importance of collaboration throughout the industry and the overall focus area for the industry. The key note speaker in 2015 was Patrick Hollingworth, a high altitude mountaineer, who delivered a breath taking speech about working together and aiming for the top. Throughout the day, the many and highly qualified con ference speakers continued to contribute with visions and suggestions on how to integrate collaboration in order to strengthen corporate safety policies and proce dures. The Annual Safety Conference attracted 380 dele gates from the industry, stakeholders, academia, govern mental authorities as well as international attendees. The safety conference included a sponsor exhibition which has turned into an integrated part of the safety conference. In 2015, 32 sponsoring companies supported the conference and the majority of those showcased their different products and services on how to enhance safety in the oil and gas industry. Oil Gas Denmark is grateful for the support that compa nies and participants have shown by sponsoring and at tending this event.
Oil Gas Denmark’s Executive dinner Oil Gas Denmark arranged the second Executive Dinner in connection with the Annual General Meeting. The ex ecutive dinner took place at Hindsgavl Slot. More than 70 executives representing a large majority of our members participated as well as a significant number of represen tatives from the government administration and external key stakeholder. Minister for Climate, Energy and Building, Rasmus Helveg Petersen was the key note speaker and the oretical physicist Holger Bech Nielsen was invited to share his passion about dark matter. The executive dinner has turned into an excellent net working opportunity for the industry as well as primary stakeholders. The dinner is only for executives in the oil and gas industry and invited guests.
Annual Report 2015 — Oil Gas Denmark
23
Key Achievements in 2015
International engagement IOGP Oil Gas Denmark has strategically chosen IOGP as the voice of the Danish oil and gas sector in EU. Oil Gas Den mark is an active member of IOGP and has taken seat in the EU Committee, HSE Committee and Communication Committee and the management forum. By taking active part in IOGP, Oil Gas Denmark can present the Danish oil and gas industry's positions at EU through IOGP and thereby secure that the Danish oil and gas sector is served in the best possible way. IOGP has in a number of cases given Oil Gas Denmark an early warning on upcoming legislation which has empo wered Oil Gas Denmark to work for establishment of an official Danish position which serves our members.
NOIA (National Oil Industry Association) The NOIA forum is a forum where national industry or ganizations meet on a regular basis and discus issues of common interest. A CEO forum is facilitated by IOGP's London office where collaborations with IOGP are dis cussed. A safety training Committee for the NOIAs around the North Sea meets once a year. The Committee consists of safety expert representatives. The primary focus for the Committee is the mutual recognition between the North Sea countries and sharing of recent developments in the North Sea countries. In 2015 the meeting was held in Nor way, and it was agreed to continue with the mutual recog nition without any changes.
24
Oil Gas Denmark — Annual Report 2015
Bilateral collaboration around the North Sea Collaboration and engagement is ongoing among the other oil and gas industry organizations around the North Sea, including Oil & Gas UK, Norwegian Oil & Gas and NOGEPA. Economics Director from Oil & Gas UK Mike Tholen and Bente Nyland Director General from the Norwegian Petroleum Directorate both participated at the Oil & Gas Summit in 2015 with perspectives on how the industry organization in UK and authorities in Norway have handled the challenging situation in the re spective countries. Beside the summit, ongoing collabora tion takes place on specific issues.
Financial performance 2015
2015 2014 Income
t. DKK
Members fee
10.727
9.220
Conferences, strategy work etc.
7.939
2.397
18.666
11.617
Costs of conferences, strategy work etc.
(8.915)
(2.451)
Administrative costs
(2.992)
(3.708)
Total income
Rent (532) Staff costs Result before depreciation
Depreciation and impairment of fixed assets
(395)
(5.964)
(4.860)
263
201
0
(12)
Result before financial items
261
191
Financial expenses
(17)
(12)
Tax (10) Result for the year
236
(8) 171
Annual Report 2015 — Oil Gas Denmark
27
Current members Service and Supplier Companies 1 ABB A/S 2 AMU-Vest 3 An Group A/S 4 ARBEJDSMILJØEksperten 5 AVK Holding A/S 6 Baker Hughes 7 Bech-Bruun 8 Bel Air Aviation A/S 9 Blue Water Shipping A/S 10 Bureau Veritas Certification 11 Caverion A/S 12 Citizen Dane A/S 13 COWI A/S 14 Danbor A/S 15 DanCopter A/S 16 DHL Global Forwarding (Danmark A/S) 17 DNV Oil & Gas Denmark 18 Emerson Process Management A/S 19 Ernst & Young 20 Falck Safety Services A/S 21 Foga ApS 22 FORCE Technology 23 Geokon A/S 24 Global Gravity ApS 25 Halliburton Denmark A/S 26 Horten Advokatpartnerselskab 27 IAT Base & Energy 28 Jutlandia A/S 29 Keel Solution 30 KPMG 2014 P/S 31 Kromann Reumert 32 Lassen Ricard Advokataktieselskab 33 Lisbeth Holberg ApS 34 Lloyd's Register Consulting 35 Maersk Drilling 36 Maersk H2S Safety Services A/S 37 Maersk Training A/S 38 Martec 39 Ocean Team Scandinavia
28
Oil Gas Denmark — Annual Report 2015
Current members
40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59
Offshore Medicalcenter Plesner Pon Power A/S PwC Q-STAR Energy A/S Ramboll Oil & Gas Real Safety Sandroos Adv.firma Schlumberger Danmark A/S Semco Maritime A/S Siemens A/S Soil Recovery A/S Swagelok Danmark Tracerco Norge A/S Valtor Offshore A/S Weatherford Danmark A/S Welltec A/S Windahl Sandroos & Co. Wärtsilä Danmark A/S ÅF A/S
Oil Companies, Partners and License Holders 1 VNG Danmark ApS 2 Shell Olie- og Gasudvinding DK B.V. 3 NORECO 4 Nordsøfonden 5 Maersk Oil 6 HESS Danmark ApS 7 DONG Oil & Gas A/S 8 DEA Deutsche Erdoel AG 9 Danoil Exploration A/S 10 Wintershall Noordzee B.V 11 Chevron Denmark Filial af Chevron Danmark Inc., USA 12 Bayerngas Associated members/ associations 1 IADC 2 Offshoreenergy.dk 3 Danish Oil & Gas Technology Group
Annual Report 2015 — Oil Gas Denmark
29
Organization
Organization BOARD OF DIRECTORS
OIL COMPANY COUNCIL
CEO
SUPPLIER COUNCIL
Legal Committee
OIL GAS DENMARK
Communication Committee
Sector Development
Value Chain
Health, Safety and Environment
Skills and Capabilities
Only Oil Gas Denmark Committees are shown in the organizational chart. Task specific work groups and ad hoc work ing groups which both typically are referring to a Subcommittee are listed below in the Committee, Subcommittee and work group members list.
Annual Report 2015 — Oil Gas Denmark
31
Committee, Subcommittee and workgroup members HSE Committee Jacob Heinricy Jensen, DONG Oil & Gas Jeffrey Samuelsen, Schlumberger Simon Byrne, Maersk oil Mike George, HESS Sven Stueben, Shell Toralf Kaland, Bayerngas Pieter de Graeff, Wintershall Bent Nielsen, Maersk Drilling Environmental Subcommittee Børge Christensen, Schlumberger Jens R. Valeur, Ramboll Oil & Gas Jesper N. Mellmolle, NOV Brandt Soil Recovery Jette J. Østergaard, Maersk oil Lars H. Hansen, Maersk Oil Lars Jensen, Halliburton Lars Roesen, HESS Lene Kristensen, COWI
32
Oil Gas Denmark — Annual Report 2015
Collaboration Forum for Better Environmental Regulation Lars Hvejsel Hansen, Maersk Oil Lene Kristensen, COWI Jette Østergaard, Maersk Oil Lars Roesen, HESS Environmental status report work group Jesper Mellmolle, NOV Brandt Soil Recovery Jette J. Østergaard, Maersk Oil Lars Jensen, Halliburton Lars Roesen, HESS Lene Kristensen, COWI Hydrocarbon BREF Work group Lars H. Hansen, Maersk Oil Peter Hindsberger, DONG Oil & Gas Christian Kargaard Jensen, Maersk Oil Vagn Rasmussen, Maersk Oil
Committee, subcommitte and workgroup members
TFZ Programme Committee Jacob Heinricy Jensen, DONG Oil & Gas Jeffrey Samuelsen, Schlumberger Simon Byrne, Maersk Oil Mike George, HESS Sven Stueben, Shell Toralf Kaland, Bayerngas Pieter de Graeff, Wintershall Bent Nielsen, Maersk Drilling HS Subcommittee Troels Rasmussen, Maersk Oil Stefan Reib, HESS Dorthe Ulsø, Semco Maritime Jacob Flink, Caverion Jesper Braagard, DNVGL Keld Fjord, DONG Oil & Gas Per Hjort Lorenzen, Danbor Training Workgroup Keld Fjord, DONG Oil & Gas Kenneth Dielemans, Maersk Oil Stefan Reib, HESS Christian Bo Sørensen, Maersk Training Jesper Jonø, Falck Safety Service Kenneth Ørum Kirkegaard, Martec Sonnich Nielsen, Maersk Training
Communication Committee Charlotte Holst Frahm, Maersk Oil Rikke Tikjøb Christiansen, Maersk Oil Jesper Tau-Brieghel, Shell Anders Holst Nymark, Dong Energy Annette Ernst Lüdeking, Rambøll Lene Tornel, Semco Maritime Skills and Capabilities Committee Mikkel Stephansen, Maersk Oil Annette Bjørke, Hess Denmark Mette Højgaard Nielsen, Dong Oil & Gas Jens Holm Nielsen, Semco Maritime Anette Rytter, Rambøll Tina Flindt, Q-Star Energy Ole Brian Nielsen, Caverion Legal Committee Lene B. Frøtlund, Nordsøfonden Martin Skovbjerg, Welltec Peter Hindsberger, DONG Oil & Gas Søren H. Svendsen, Horten Ulrik L. Sørensen Maersk Oil Louise van Wijk, Wintershall
Lene Christensen, Dansk el-forbund Michael Jørgensen, CO-industri Jan Toft Rasmussen, Dansk Metal
Helicopter Safe Transport Workgroup Christian Kargaard Jensen, Maersk Oil Dan Lockdahl, DONG Oil & Gas Jesper Bach Ladefoged, Maersk Oil Lars-Henrik Thorngren, Dancopter Martin Björk, DONG Oil & Gas Pernille Beck, HESS Peter Hindsberger, DONG Oil & Gas Susanne Hessellund, Belair Tommy Schmidt, HESS Tonny Aage Ditlev Hansen, Maersk Oil
Annual Report 2015 — Oil Gas Denmark
33
Martin Næsby Managing Director M: martin.naesby@oilgasdenmark.dk P: +45 3841 1881 C: +45 2199 6550
34
Esben Mortensen Head of Secretariat
Ulla Lena Head of Communication
Dorthe Heedegaard Office Manager
M: esben.mortensen@oilgasdenmark.dk P: +45 3841 1888 C: +45 2949 4575
M: ulla.lena@oilgasdenmark.dk P: +45 3841 1882 C: +45 3148 1927
M: dorthe.heedegaard@oilgasdenmark.dk P: +45 3841 1883 C: +45 2615 1034
Oil Gas Denmark — Annual Report 2015
Employees
Jesper Sjørvad HSE Expert
Annette Hørlykke (Part time, external consultant) Accounting
Ole Sidelmann Jørgensen (Part time) Senior Advisor
M: finance@oilgasdenmark.dk P: +45 3841 1879
M: ole.sidelmann@oilgasdenmark.dk P: +45 3841 1884 C: +45 6120 0199
Joachim Pallesen (Part time) Project assistant
Sune Krøger (Part time) Project assistant
Kasper Kjærgaard (Part time) IT and Web
M: joachim.pallesen@oilgasdenmark.dk P: +45 3841 1879
M: sune.kroeger@oilgasdenmark.dk P: +45 3841 1879
M: kasper.kjaergaard@oilgasdenmark.dk P: +45 3841 1879
M: Jesper.sjoervad@oilgasdenmark.dk C: +45 5210 5201
Annual Report 2015 — Oil Gas Denmark
35
Copenhagen Office KnabrostrĂŚde 30, 1st floor DK 1210 Copenhagen K Denmark E: info@oilgasdenmark.dk P: +45 3841 1880 F: +45 3841 1889 CVR/VAT-no: 34 40 48 95
Esbjerg Office Trafikhavnskaj 11 DK 6700 Esbjerg Denmark