Telmark’s Oil-Related Businesses –
An Untapped Resource for the Oil and Gas Industry photo: Tom Riis In this year alone, 75 businesses in Norway’s Telemark county have joined the new network Telemark Offshore. The county is noted for its high level of industrial and technological expertise with 12,000 residents who work in the industry.
BY SIRI KROHN-FAGERVOLL An International Research Institute of Stavanger (IRIS) 2013 report concludes that Telemark – when compared with the counties of Agder, Buskerud, Vestfold and Østfold – is the Norwegian county with the highest number of companies in oil-related industries.
BRICS [Brazil, Russia, India, China and South Africa] countries – in addition to the Norwegian Continental Shelf – and Telemark has a strong, international focus,” says Arnt Helge Hauglid.
Prophetically, Terje Riis-Johansen, during his tenure as Norway’s Petroleum and Energy Minister said, “Telemark will be an important partner in oil-related industries.”
According to the Research Council Norway, Telemark claims the largest number PhDs among the industry’s researchers and the strongest growth in the number of doctoral degrees in the business. Telemark has 400 researchers associated with research institutions such as Telemark University College, Statoil, Norner, Tel tek, Gassnova, Hydro, Yara and Ineos.
For deliveries to subsea, shipping and processing Telemark includes powerhouse companies such as Vard Brevik, Agility Group, Bandak Group and ABB, as well as a variety of smaller suppliers.
Competence and Capacity The Telemark “technology axis” ranges from Hardangervidda to the coast. This area includes technology parks in Rjukan and Notodden, as well as Norway’s largest industrial park at Herøya in Porsgrunn. And with large quays and halls such as Vard in Brevik, Herøya Industrial Park and Agility Group’s facilities on Røra, Telemark is rigged for large offshore and subsea projects. Arnt Helge Hauglid, Chair of Telemark Offshore, explains, “These companies have the expertise, they have the capacity and, not
Research to Extend the “Oil Adventure” Arnt Helge Hauglid, Chair of Telemark Offshore
least, the willingness to grow as professional partners for the oil and gas industry in Norway and internationally.”
Rigged for Offshore Manufacturing in Telemark is, and has always been, highly export-oriented. Companies such as Yara, Ineos, ABB, Emerson and EFD Induction provide products and services globally with an 80 to 90% export share. For generations, water-generated power from Telemark has driven an industrial adventure in the county, related specifically to Hydro and process industries. Now the aim is to increase the offshorerelated revenues from NOK 5 to 15 billion by the end of 2015. “Our ambition is to continue to deliver sustainable technology from Telemark in the world. We know that much of the growth in the oil and gas sector will be in
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Moreover, at Herøya Industrial
Park in Porsgrunn, Statoil has the world’s most complex test rig for multiphase testing. In 2015, management and researchers – a total of more than 250 employees – will move into new administrative offices now under construction. “Strong research and considerable expertise give results,” says Hauglid, and he specifically mentions the niche business, Inflow Control, which has developed an oil valve that can extend oil production. The local colleges’ commitment to combine academic and line content in engineering education is an important factor for the strong competence building in Telemark.
Midway in the Oil Coast Telemark is strategically placed in the middle of the new oil coast.
AICV® – Autonomous Inflow Control Valve – from Inflow Control, is a patented new technology that will replace the conventional ICD and ensure significant increase in oil production and recovery (photo: Tom Riis)
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“By establishing a strong environment, we are inspired by the exciting clusters established in the Stavanger, Trondheim and Bergen regions – as well as NCE NODE [Norwegian Offshore & Drilling Engineering] network in southern Norway and Subsea Valley. Our goal is to help create the sixth, strong cluster centre in Norway. We want to achieve greater co-operation and enhanced innovation for companies in Telemark who work with Subsea Valley and the NODE network,” says Hauglid.
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TELEMARK OFFSHORE Strong Support Contracts The Telemark oil and gas supply business is making a difference. Technical Support AS, with offices in Porsgrunn and Molde, is part of the TS Group, with 260 employees. The company was recently awarded two services contracts, with a combined value of NOK 400 million, by Norske Shell. The contracts are for Site Support Services at Shell’s facility at Nyhamna and for Competence Management Services for Nyhamna and on the Draugen field. The 7-year contracts each have a 1-year option. “The contract award is a strong signal that our expertise is appreciated and our employees contribute to a stable and secure operation of Nyhamna,” says Technical Support AS Managing Director, Rolf Hegna.
Rig Support “In Grenland we have great capacity – professionals, expertise, quay and halls – that can handle a full rig workover. The dream had been to bring an oil rig here,” says Dag Tore Johnsen, CEO of Bilfinger OTAC at Herøya Industrial Park in Porsgrunn. OTAC Offshore Turnaround Consultancy is planning for a big turnaround year, 2014, in the offshore sector. “We have the capacity, experts and resources in Bilfinger Industrial Services. And in co-operation with Herøya Industrial Park, Vard,
Agility Group and others, we can offer complete services,” adds Johnsen.
Innovative Valve A new, innovative valve has the potential to help lengthening Norway’s oil adventure. Inflow Control, located in Porsgrunn, has developed a valve to increase profitability by increasing oil recovery. With great interest from the oil and gas industry, the Research Council of Norway and the EU have allocated several million kroner to help it reach the market. “We aim to develop new technologies based on our experience and expertise,” says General Manager Vidar Mathiesen in Inflow Control. “Our customers, especially those in the Middle East, have really focused on new technological solutions,” he notes. Mathiesen envisages the valve reaching the market in 2016. In this project Inflow Control has collaborated with companies, research institutions and universities from England, Germany and Norway.
Robustly Filling the Niches Two niche companies from Telemark are developing technological solutions for the future of the oil industry. Acona, specialists in well control and inflow, have developed a new valve. Kinera delivers specialised coatings for offshore. Acona’s valve is now under development. “We don’t want to release
Telemark Offshore: Established: June 2012 Network: 75 companies from all over Telemark – over 100 businesses in the county are engaged in the oil and gas industry (source: IRIS Report) Competence: 5,400 residents work in offshore – more than 1,000 on the NCS – fourth largest college in Norway Location: Part of Eastern Norway’s oil coast Sales: NOK 5.4 billion to the oil and gas industry in 2012 Goal: Increase revenue to NOK 15 billion in 2015 Contact: email@example.com Visit: www.telemarkoffshore.no
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The oil and gas competence is centered south-east in Telemark (source: Rystad Energy)
too early,” says CEO Trygve Rinde. “The valves must be robust, failsafe and convertible – and they are required to survive 25 years. We will provide an industrial solution that works for the customer in all situations.” According to Rinde, Norway is the world-class when it comes to valve technology. Worldwide, there are two to four groups in Houston and three here in Telemark. “It’s exciting to be part of the milieu here,” says Rinde. After 7 months of accredited testing at Norner, Kinera has earned the NORSOK 501 approval for coating and can now offer its corrosion and wear solution for offshore. “It was a big step in the right direction for us,” says Kinera’s Marketing Manager, Bård Sæthre. “After receiving NORSOK approval, we’ve already delivered to Statoil. It has opened great opportunities and we are in the process of building up production more locally,” adds Sæthre.
Potential to Lead in Norway With Norway’s largest industrial process environment, Telemark
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can take a leading position in supplying to the oil and gas industry, concludes Jarand Rystad in a recent report on Telemark Offshore. The Rystad Energy report emphasises that companies in Telemark have great potential. “The most unique is the chance to become a leader in Norway in industrial processes for the oil and gas,” says Jarand Rystad. “Bilfinger and TS Group are good examples of companies with the capacity of automation, control, optimisation, control and maintenance of processes. In addition, there are smaller, knowledge-based companies that deal flow modelling.”
Entrepreneurial Spirit And Co-Operation According Rystad there is also potential to increase the use of process skills in Telemark. “There are 1,066 important North Sea workers in Telemark. We should take our time and identify the entrepreneurial spirit,” says Rystad in an appeal to the region. n
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