Statoil: Future Offshore Projects Face New Industry Demands

"Future offshore projects will have to meet new quality and cost-efficiency requirements. Statoil and suppliers will need to acknowledge this development if we are to maintain our competitive advantage."

Thus spoke Statoil's executive vice president in charge of projects and procurement, Gunnar Myrebøe, at the Offshore Strategy Conference held in Stavanger on Wednesday, February 10.

Some 300 oil industry representatives attended to exchange plans and experience while discussing Norwegian offshore industry challenges.

"The Norwegian continental shelf (NCS) is, and will be, important for Statoil and Norwegian industry. Bold technology developments and close collaboration with suppliers have brought us to where we are today. And it is these elements that will take us forward. Nevertheless, we do have to acknowledge the spiralling development of costs during the past decade and the trend of reduced quality in our deliveries. Though we have lately seen improvements in these areas, we still have some way to go until we are where we should be in order to achieve joint success," Myrebøe emphasized.

There was record-high investment on the NCS in 2009, and Statoil's forecasts reveal that the company's capital expenditure in 2010 will also be high.

"However, we must also recognize the considerable uncertainty still clouding the global economy and oil prices. We are therefore compelled to take the time needed to mature and quality assure our plans before making development decisions," added Myrebøe.

The future trend on the NCS would indicate fewer major developments, but more subsea facilities, more modification and maintenance projects, and more projects for the removal of NCS installations.

"As a company we are dependent on having a competitive supplier industry. Norwegian suppliers are, in our experience, able to adjust and adapt. As a publicly quoted company it is natural for us to do business with those whom we believe in and who deliver."