2
FOCUS ON OIL & GAS
REVENUE: OIL & GAS’ SHARE OF TOTAL
2014 was defined by the inherent volatility that occurred in the oil and gas industry. Operating costs continued to rise and the industry faced a rapid fall in oil prices. DNV GL was well-positioned to support customers in their efforts to enhance the safety, reliability and performance of projects and operations in this rapidly evolving energy landscape.
EMPLOYEES: OIL & GAS’ SHARE OF TOTAL
6,264
4,048
NOK MILLION
EMPLOYEES
D
NV GL was appointed as technical advisor and assurance partner to a variety of landmark projects and operations in 2014. These included a multi-million pound thirdparty Independent Competent Person contract related to compliance with offshore regulations for the Statoil Mariner field; the largest offshore development in the UK in more than a decade.
40 COUNTRIES
Our global network of oil and gas experts is spread across 40 countries.
Our integrated expertise facilitated success across the industry, as illustrated by the contract win with BG Group for process safety in design verification relating to the frontend engineering and design (FEED) for the conversion of the Lake Charles Liquefied Natural Gas (LNG) import terminal to an export facility. Here, legacy GL process engineering experts’ previous experience of BG Group LNG projects in Australia, Trinidad & Tobago and Egypt, combined with the LNG expertise of local legacy DNV staff, helped secure a contract for the FEED of the Louisiana-based development. In Asia, we signed a contract with ENI Muara Bakau B.V. for the classification and verification of the Jangkrik Floating Production Unit (FPU) in a joint venture with BKI (PT Biro Klasifikasi Indonesia). The newbuild FPU will have the capacity to treat 450 mmscfd of gas plus condensates and is scheduled to start production in 2017. This marks DNV GL’s entry into FPU classification in the Indonesian market.
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ANNUAL REPORT 2014
We also signed a five-year agreement with one of Shell’s oldest joint venture companies, BSP. DNV GL will provide third-party inspection and specialist services to more than 300 on- and offshore facilities in Brunei. INVESTING IN INNOVATION. A continuing programme of investment, in both people and facilities, is key to DNV GL’s aim of innovating to add value for customers and the industry at large. In 2014, this was supported through a strengthening of our global network of technical and innovation hubs and laboratories. This included trebling the size of the Deepwater Technology Centre in Singapore and augmenting our harsh-environment expertise. We also established a new research and development hub in Brazil to focus on offshore safety, subsea systems, deepwater drilling and well control. Activity at our multiphase flow laboratory in Groningen, the Netherlands, also increased in 2014, as epitomized by a six-week test on the Twister supersonic gas separator commissioned by Samenwerkingsverband NoordNederland (SNN). DRIVING EFFICIENCY, REDUCING COSTS.
Ongoing rises in operating costs collided with a dramatic fall in oil prices in the second half of 2014. Operators across the industry responded with further cutbacks in their capital expenditure plans and cost cutting across their operations. This enforced our work to enable customers to achieve significant cost efficiencies and develop a more sustainable cost base through industry standardization. In the subsea sector, we introduced the first certification scheme for subsea equipment and components to drive efficiency, while also collaborating with Statoil on a project to introduce an international
industry standard for subsea factory interface standardization. In addition, DNV GL has joined forces with 19 industry players to facilitate the streamlining of subsea documentation, seeking to increase efficiency through the presentation of a minimum unified set of documentation requirements for all major subsea components. As the digitalization of the oil and gas industry continues, the opportunities and challenges provided by accessing ‘big data’ become more evident. We are honing our competency in the field through our involvement in the four-year Optique joint industry project. This industry-academia initiative will seek to enhance access to large and complex data sets to facilitate more informed decision-making – another key to driving forward future efficiencies.
1st
We facilitated efficiency by introducing the first certification scheme for subsea equipment and components.
Advances in, and the industry’s increasing reliance on, IT leads to risks as well as opportunities. Cyber security is one area of concern where we are supporting customers, providing in-depth risk assessment and management solutions. In 2014, we used our expertise to address the issue for Total E&P Norge and its Martin Linge project.