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ANNUAL REPORT 2013


1 2 ANNUAL REPORT 2013


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Oil Gas Denmark is the leading upstream, oil and gas industry organisation in Denmark Oil Gas Denmark is a non-profit, member driven organisation 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

• 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 opportunities, develop/support new initiatives to strengthen HSE, and strive to enhance value creation for the sector and society

Our strategic aims are to

• 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 stakeholders and seeking impact • Remaining focused as a lean and agile organisation • Promoting a learning culture


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Content 8/ 10/ 14/ 16/

Foreword by Martin NĂŚsby, Managing Director

Board of Directors

Highlights of 2013: Troels Albrecthsen, Chairman

Highlights of 2013: Verner Andersen, Vice Chairman


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Key Achievements in 2013

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Financial Performance 2013

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Organisational Change of Oil Gas Denmark

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Current members of Oil Gas Denmark

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Oil Gas Denmark – organisational Chart


„We are proud that the entire sector has backed our vision to have one organisation representing all of the industry. “ Martin Næsby Managing Director Oil Gas Denmark


9 ANNUAL REPORT 2013 / Foreword by Martin Næsby, Managing Director

As an industry, we are facing major challenges such as maturing infrastructure, declining production and increasing operating costs. It requires a focused effort and major investments to extract the potential. With Oil Gas Denmark, the oil and gas industry has a joint forum to promote this task. If we are to succeed, we need a coordinated effort in order to further develop the sector in a number of areas. Oil Gas Denmark has seen a strong increase in number of members. By 1 January 2014, Oil Gas Demark represented around 65 members or an increase of more than 200% since the organisation was established in 2012.

„If we are to succeed, we need a coordinated effort in order to further develop the sector in a number of areas.“ Following finalization of the Service review in 2013, the Ministry for Climate, Energy and Building has in April 2014 set in motion the work with the long term strategy for increased recovery of oil and gas from the Danish continental shelf. The Ministry has among other pointed out that the review will encompass the infrastructure, increased recovery from known fields as well as securing the future recruitment for the industry. Oil Gas Denmark is looking forward to participating in the work. In preparing for this work we have produced the report “The potential in the North Sea”, which points to a number of drivers which can create new growth in the North Sea. The work

with the long term strategy is expected to be finalized by the end of May 2015. In 2013 we continued our strong industry focus on health, safety and environment. With the Safety Conference on 18 April 2013 we were honoured to welcome prominent speakers as Professor Sidney Dekker, Griffith University, Australia and Jim Trodden, OIM, Chevron Upstream Europe to deliver key note addresses. Around 320 representatives of management, workforce, regulators and academia came to remind ourselves that although we as an industry have a low accident ratio compared with onshore work; our goal is to do it even better. That remains the philosophy behind Oil Gas Denmark. Oil Gas Denmark has in 2013 prepared for consolidation of the oil and gas industry. We are proud that the entire sector has backed our vision to have one organisation representing all of the industry. ‘Danish Operators’ and ‘Danish Offshore Industry’ have thus with effect from 1 January 2014 ceased as organisations and all members have been transferred to the continuing organisation. Oil Gas Denmark is a member-driven and member-focused industry organisation. We depend on you support, advice and input and thank you for your contribution and support in 2013. Our agenda must be set by and for our members. We look forward to working with and for you in 2014. Martin Næsby Managing director Oil Gas Denmark


Board of Directors


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Troels Albrechtsen Head of CTP, Maersk Oil (Chairman) Verner Andersen Vice President, Semco Maritime (Vice Chairman) Flemming Horn Nielsen Country Manager, DONG E&P A/S Anders Nymann Asset Director, HESS Danmark ApS John Sørensen Managing Director, Ramboll Oil & Gas Lars H. Katteland Director Development & Operations, VNG Danmark Lars Torbensen F & A Manager Denmark, Halliburton


In 2013 we continued our strong industry focus on health, safety and environment.


Photo: Network Rail UK

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„As an oil nation we have great potential for growth� Troels Albrechtsen, Chairman


15 ANNUAL REPORT 2013 / Highlights of 2013: Troels Albrechtsen, Chairman

It is quite clear that Denmark is making its mark as an oil nation that effectively utilises its resource base and export technology and raw materials. And as an oil nation we have great potential for growth. Oil Gas Denmark seeks to deliver its objectives of enhancing value for the industry and society and raising the awareness of the industry’s benefit to the wider economy. 2013 has been a good ‘first year’ for the organisation of effort and achievements by the team in Knabrostræde.

„Recognition of Oil Gas Denmark as the voice of the industry has grown strong in 2013.“ We are still an organisation under establishment. At the Board of Directors we are pleased to see the progress of the organisation and the support it enjoys in the industry. A few highlights would include:

Establishing of the strong HSE collaboration across the industry has been a landmark achievement. The Safety Conference in April 2013 was showcasing international safety leadership. The delivery of the EU Offshore Safety Directive will allow Denmark to build constructively on its already strong framework. Oil Gas Denmark has kept an eye on our cooperation with educational institutions. Securing ‘people in the pipeline’ is a strong focus area. Achievements include participation in various committees and advisory boards as well as media attention by interviews and articles. I am very happy to see that the Skills & Capabilities Committee has found its feet. The Service Review showcased a number of opinions in the industry. However, Oil Gas Denmark’s role has been to represent the ‘common denominator’ and has done so with good results. Recognition of Oil Gas Denmark as the voice of the industry has grown strong in 2013. The main challenge for the industry will be to remain focused on safely delivering the growth potential - with humility and without complacency. Troels Albrechtsen Chairman Oil Gas Denmark


„I am confident that Oil Gas Denmark will continue its focus on value creation and thereby ensuring that all supplier and service companies get great value from their membership and participation in the organisation.� Verner Andersen Vice President Oil Gas Denmark


17 ANNUAL REPORT 2013 / Verner Andersen, Vice President

2013 has been a good year for the Danish supplier and service industry. The investments from the operators have been very high. This has in turn procured new jobs, increased tax revenues and growing exports from the supply chain.

„We are proud to having been a strong partner in building Oil Gas Denmark“. Danish Offshore Industry proved a valuable stepping stone into Oil Gas Denmark. We are proud to having been a strong partner in building Oil Gas Denmark leading into creation of

the ‘Supplier Council’ where we in the future will continue to represent the views of the supplier and service industry. My highlights of 2013 include: · Finalisation of the Service review of the sector and kick off of a ‘Long Term Strategy’ · Creation of many new jobs · Enhanced collaboration as regards HSE and ‘people in the pipeline’ Great support from the supplier and service industry. I am confident that Oil Gas Denmark will continue its focus on value creation and thereby ensuring that all supplier and service companies get great value from their membership and participation in the organisation. Verner Andersen Vice President Oil Gas Denmark


Key Achievements in 2013 Health, Safety and Environment

Skills & Capabilities

Oil Gas Denmark’s HSE Committee has been consolidated. A work programme has been approved and processes have been refined in order to secure collaboration across the industry and with the authorities. Oil Gas Denmark has stepped into the ‘Offshore Safety Council’ (‘Offshoresikkerhedsrådet’) representing the industry’s views, notably as regards current implementation of the EU’s Offshore Safety Directive. A Health and an Safety Sub Committee and Environment Sub Committee have been established and work programmes approved. Moreover, ad hoc committees have been established e.g. Oil Gas Denmark’s Safety Training Subcommittee, Safety Conference Programme Committee and others.

Oil Gas Denmark’s Skills & Capabilities Committee has been established, including working on a long term work programme. Oil Gas Denmark has been represented in the Work Group under the Ministry for Higher Education and Science, mapping the need for competencies in the industry. Collaboration with the Danish Shipowners Association has been kicked off and the ‘World Careers’ Employer branding event was held with Oil Gas Denmark at DONG’s offices on 4 December 2013. 150 students (mostly engineers and ‘maskinmestre’) and 13 oil and gas companies attended the event with good feedback. Oil Gas Denmark is represented at the Advisory Board under Danish Offshore Academy.


19 ANNUAL REPORT 2013 / Key Achievements in 2013

Drillers’ Forum

Communication and Publications

A Drillers’ Forum is under establishment comprising drilling managers.

Oil Gas Denmark has throughout 2013 been mentioned in Danish media every other day in average. Key issues have been investments, work places, tax, and potential in the industry as main headlines. We have delivered the yearly magazine in September 2013 as well as HSE publications. An English version of our web site has been procured. Presentations of the organisation have been made throughout Denmark as well as to a number of Danish and foreign media through interviews and or as back-ground information. A Communication Workgroup has been established.

Public hearings Oil Gas Denmark has established itself as the hearing partner for the Oil and Gas production industry in 2013.

Legal Committee Oil Gas Denmark’s Legal Committee has been established and consolidated. Focus has been the EU Offshore SAFETY DIRECTIVE, training seminars and other. A work programme has been established and a safety directive work group has been active during the processing of the directive in the Offshore Safety Council.


Key Achievements in 2013 Service review

Partnering and recognition

In April 2012, the Danish Government kicked off a review of the taxation of the oil and gas industry. A report with a number of recommendations was issued in March 2013. The legislation which followed the recommendations came into force end of 2013. Oil Gas Denmark prepared a written reply to the government in 2013.

Oil Gas Denmark has in a number of organisations and elsewhere taken its seat as the representative of the Danish oil and gas industry. These include Oil Gas Denmark seats at  

Offshore Safety Council

 Danish National Committee under World

Petroleum Council

 Advisory Board at SCIENCE, University of

Copenhagen Advisory Board at Offshoreenergy.dk   Advisory Board Danish Offshore Academy   Advisory Board CMSS  ‘Forskningspolitisk Kontaktudvalg’ (Ministry for Higher Education and Science)   Region Syddanmark’s ‘Offshore Analyse’  ‘Parts samarbejdet’ (Ministry for Environment)   ‘Arbejdsgruppe om mangel på arbejdskraft’   (Ministry for Higher Education and Science)  Moreover, collaboration is ongoing with a number of other organisations in Denmark.  


21 ANNUAL REPORT 2013 / Key Achievements in 2013

Organisation

Political and International Engagement

The strategic focus of Oil Gas Denmark was confirmed at the Board strategy meeting held on 26 February 2013. Consolidation and adaption of organisational structure was achieved by liquidation of ‘Danish Operators’ and ‘Danish Offshore Industry’ with effect from 1 January 2014. The acquisition of new members continued throughout 2013 and Oil Gas Denmark now represent 13 oil and gas companies as well as around 50 supplier and service companies

Oil Gas Denmark has facilitated a number of meetings and presentations with politicians and officials from parliament and regionally as well as members from opposition parties. Those meetings have provided unique opportunities to present sector views and to explain the value creation of the industry. Moreover, international collaboration and engagement is ongoing with among other oil and gas industry organisations, including e.g. OGP, Oil & Gas UK, NOROG (Norsk Olje og Gass), NOGEPA and others.

Training Oil Gas Denmark has kicked off training, notably legal courses as well as training within HSE. 10 seminars have during 2013 been organized in Esbjerg and Copenhagen with a wide range of member companies engaged in the various discussions.


Photo: Maersk Oil


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Financial Performance 2013

2013

2012

Income

t. DKK

9.222

4.540

Safety Conference Sponsorships 1.651

0

Total income 10.874

4.540

Members fee

Administrative costs

(6.079)

(990)

Rent (336)

(223)

Staff costs

(4.429)

(2.315)

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10

(12)

(7)

15

3

Financial expenses (15)

(3)

Result before depreciation Depreciation and impairment of fixed assets

Result before financial items

Result for the year 0

0


Organisational Change of Oil Gas Denmark With the formation in 2012 of Oil Gas Denmark, Danish Operators and Danish Offshore Industry established a common platform, the objective of which still is to encompass the consolidated interests of the industry, and secure that the industry would speak with one voice. As a part of the consolidation of the structure of the associations, it was in 2013 decided to establish a flexible and streamlined organisation.

The main consequences of the consolidation are:   Dissolvent of Danish Operators and Danish Offshore Industry  All members were taken in as members of Oil Gas Denmark

directly.   Two councils representing oil companies and supplier/service companies, respectively, were established formally deciding among other on representation in the board of directors and member fee.   Oil Gas Denmark’s Board of Directors will for future purposes comprise 7 members. 4 will be elected by the Oil Company Council and 3 will be elected by the Supplier Council.   The consolidation was supported and approved by 100 pct. of the members of the two founding organisations.


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Photo: Polfoto

ANNUAL REPORT 2013


Current members Oil Companies, partners and license holders

1 Bayerngas 2 Chevron 3 Danoil Exploration A/S 4 DONG E&P 5 Hess Denmark ApS 6 Maersk Oil 7 Nordsøfonden 8 NORECO 9 PA Resources UK Limited 10 Shell 11 Total E&P Denmark B.V. 12 VNG Danmark ApS 13 Wintershall Noordzee B.V.

Service and supplier companies

14 ABB A/S 15 An Group A/S 16 ARBEJDSMILJØEksperten 17 AVK Holding A/S 18 Baker Hughes 19 Bech-Bruun 20 Bel Air Aviation A/S 21 Blue Water Shipping A/S 22 Bureau Veritas Certification 23 Caverion A/S 24 Citizen Dane Riskfilm A/S 25 COWI A/S 26 Danbor A/S 27 DanCopter A/S 28 Dansk Gasteknisk Center 29 DHL Global Forwarding (Danmark) A/S 30 DNV


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31 Emerson Process Management A/S 32 Falck Safety Services A/S 33 Foga ApS 34 FORCE Technology 35 Geokon A/S 36 Global Gravity ApS 37 Halliburton Denmark A/S 38 Horten Advokatpartnerselskab 39 IAT Base and Energy A/S 40 Jutlandia Terminal A/S 41 Keel Solution ApS 42 Lassen Ricard Advokataktieselskab 43 Lisbeth Holberg ApS 44 Maersk Drilling 45 Maersk H2S Safety Service A/S 46 Maersk Training A/S 47 Ocean Team Scandinavia A/S 48 Pon Power A/S Copenhagen 49 Q-STAR Energy A/S 50 Rambøll A/S 51 Real Safety (Real SAP) 52 Sandroos Advokatfirma 53 Schlumberger Danmark A/S 54 Semco Maritime A/S 55 Siemens Oil & Gas 56 Soil Recovery A/S 57 Tracerco Norge A/S 58 Valtor Offshore A/S 59 Weatherford Danmark A/S 60 Welltec 61 Wärtsilä Danmark A/S 62 ÅF A/S

Associated members/associations

63 Danish Offshore Energy Group (Eksportforeningen) 64 IADC (International Association of Drilling Contractors) 65 Offshoreenergy.dk


BOARD OF DIRECTORS

OIL COMPANY COUNCIL

MANAGING DIRECTOR

OIL GAS DENMARK

Skills & Capabilities Committee

Training subcommitee

Drillers Forum

TFZ Programme Subcomittee

Health and safety Network

HSE Commitee

Health and Safety subcommitee

Ad hoc Helicopter transport work group


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SUPPLIER COUNCIL

Communications Commitee

Environmental Subcommitee

Ad hoc diving tables work group

Legal Committee

Ad hoc offshore safety directive work group

Regulators forum


Martin NĂŚsby Managing Director

Ulla Lena Head of Communication

M: martin.naesby@oilgasdenmark.dk P: +45 3841 1881 C: +45 2199 6550

M: ulla.lena@oilgasdenmark.dk P: +45 3841 1882 C: +45 3148 1927

Esben Mortensen Head of Secretariat

M: esben.mortensen@oilgasdenmark.dk P: +45 3841 1888 C: +45 2949 4575

Annette Hørlykke (Part time, external consultant) Accounting M: finance@oilgasdenmark.dk P: +45 3841 1879


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Dorthe Heedegaard Office Manager

M: dorthe.heedegaard@oilgasdenmark.dk P: +45 3841 1883 C: +45 2615 1034

Ole Sidelmann Jørgensen (Part time) Senior Advisor

M: ole.sidelmann@oilgasdenmark.dk P: +45 3841 1879 C: +45 6120 0199

Rasmus Nielsen (Part time) IT and Web

M: rasmus.nielsen@oilgasdenmark.dk P: +45 3841 1884


KnabrostrĂŚde 30, ground floor 1210 Copenhagen K Denmark E: info@oilgasdenmark.dk P: +45 3841 1880 F: +45 3841 1889 CVR-nummer: 34 40 48 95


Oil Gas Denmark Annual Report 2013