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STATOIL WIN KCA Deutag secures
biggest contract in company history
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LOUISE ANDREW An insight into the Group
Company Secretary & General Counsel
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BUSINESS EFFICIENCYAn update on what’s been achieved so far
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GLOBAL NEWS FOR KCA DEUTAG PEOPLE AUGUST 2013
www.kcadeutag.com
Our PeopleThe fuel that runs our company
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Norrie’s Message
CONTENTS
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3. Our People
Our People
RDS News
Bentec Update
Business Efficiency
Graduate Programme
Stop2Think
Louise Andrews
Our Peopl
Statoil
Where in the World
CONTACT US
We value your comments and if you have any material you would like considered for the next edition. All submissions are considered but may not be printed due to space. Please contact:
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As KCA Deutag approaches its 125 years anniversary, it seems apt to dedicate this issue of Venture to all of our staff. After all, it’s your hard work, dedication and loyalty which have guided the company to where it stands today.
The journey of a business is rarely entirely smooth and we understand that you will have encountered challenges in one form or another throughout your career. One of the main challenges we face is achieving our ultimate goal of zero incidents. I ask that everyone continues to be vigilant, learn lessons from the past and communicate and support your colleagues going forward. Thank you for your tenacity and for your continued efforts.
Amongst recent notable achievements is a significant award with Statoil on the Norwegian Continental Shelf for the management, operation and maintenance of two Category J jack-up rigs. This enhances our significant presence in Norway and spearheads our strategy of becoming the leading drilling contractor in the area. I would like to congratulate the entire company for this triumph and look forward to seizing the opportunities now open to us. Such achievements are only possible with world class talent. This is why we strive to engage and develop our staff as best we can. In this issue of Venture you can read about the many ways we hope to streamline and improve our business to benefit employees.Despite the successes we have enjoyed on our path, we are constantly looking for ways to improve how we do things. This will increase the quality of the service we deliver to our customers and protect the communities in which we operate. Of one thing we are certain; our people will fuel the next 125 years.
Thank you for all you have done to contribute to our success to date. Here’s to the chapter ahead.
Norrie Mckay, CEO
Norrie’s Message
Our legacy. Our future.
Year
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CELEBRAT ING We look forward to receiving pictures and stories of how each office, rig site and platform crew celebrate this major milestone in the next edition of Venture. Please send to [email protected] by 21/10/13
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Shaun ThomsonDerrickman at KCA DeutagI have been with KCA Deutag for four and a half years and I am currently on the Ninian North Rig in the North Sea. My job is quite challenging, with a lot of responsibility which requires you to use initiative.
The derrickman reports to the driller and my main role is to work up the manual Derrick either racking drill pipe stands back if they’re pulling out of the hole or throwing drill pipe stands into the elevators if they’re running in. As a derrickman I am also in charge of all fluids and bulk powder e.g. (mud, cement and barite) on the rig. I work closely with the mud engineer, to condition the mud and check the weight, viscosity and volumes in relation to well control. My job also involves being in charge of the pump room and I will repair any pumps that breakdown during operations.
auditable manner. CATS provides incident reporting for HSE, MOFs, NCRs and other events, replacing the need for paper forms (Part A and B, NCR form etc.). As CATS is a centralised database system, it can be accessed anywhere round the world and will
New System Launched - CATS
OUR PEOPLE
UPDATE
be ‘real-time’ with no need for replication. It gives an at a glance view on progress on closing out incidents, even where there are multiple actions rising from it.
To date, there have been over one hundred cases raised in CATS. It has been well received
CATS (Case and Action Tracking System) is now being used as KCA Deutag’s reporting system for capturing all incidents and events (Cases). It replaces Action Manager and ensures that actions arising from incidents are monitored, tracked and closed out in an
with most employees stating that the system is intuitive and easy to use.
An offline facility is currently being developed that will enable cases to be raised when there is a poor connection or no connection to the KCA Deutag network.
A CATS portal has been set up on Kompass with information regarding the system along with online training materials. If you have any queries regarding the system please contact:
As featured in the front cover image
Jeremy Townshend
Celebrating Safe, Effective, Trouble Free Operations
How would you describe yourself in 3 words?
Dashing, pragmatic, optimistic.
What do you wish other people knew about you and your work for KCA Deutag?
The work I do as the Group’s Operational Integrity Manager, whilst in its infancy, is crucial if we are to avoid our own Macondo. I operate an open door policy, I am interested in other people’s issues and doing what I can to help find solutions. I am passionate about trying to add value to people’s day, I really do believe we are all on the same team and that there is only one KCA Deutag Way.
What do you find most challenging about your role?
The biggest challenge will be educating people, getting the language of OI (Operational Integrity) into our culture so that they understand and own the fact that they all have a role to play in ensuring our Operational Integrity is as good/robust/strong as it possibly can be.
What are some of your objectives for the next year?
Some of my objectives include leading a number of OI Reviews and Operational Readiness Reviews and establishing a systematic approach to our Safety Critical Operations to ensure that the right controls are identified, in place and embedded within our processes so as to prevent a Major Accident Hazard. Name some of your key achievements while working for KCA Deutag?
I identified the need for a Well Control Induction procedure on our rigs, which is now fully implemented, driving compliance with Well Control certification of our personnel to levels which were previously unknown, unrecorded and unverifiable and in general getting training, competence and the whole learning & development agenda on the KCAD map.
In what way have the skills you learned in the Navy been transferable to your job in the oil and gas industry?
I see many synergies between life at KCAD, in the “upstream” O&G sector, and the military. Both industries place their people in near and present danger in hostile environments on a daily basis
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Group Operational Integrity Manager
OUR PEOPLE
The EnQuest Thistle platform has recorded six years free of Lost Time Incidents (LTIs) on drilling operations, a great achievement for KCA Deutag.
The EnQuest Thistle Drilling Teams have worked hard, their energy, effort and commitment has been tremendous as they have continuously carried out drill floor operations in a safe and efficient manner. They have taken ownership of their work environment and look after anyone who works alongside the team. The drilling teams have
delivered a highly productive drilling programme, completing a range of activities from complex well abandonments, well recovery, deep side tracks and and the installation of electrical
submersible pumps (ESPs).The safety performance was also recognised at the recent IADC awards, a certificate of recognition was awarded to Thistle KCAD Drilling Team.
PILTUN 3 Years LTI Free MOLIKPAQ 500 Days LTI Free
and as managers that means we have to be able to remain agile and able to respond to rapidly changing circumstances. We also need to ensure that the right policies, procedures, processes and training programmes are in place to ensure people know what to do and have the competence and confidence to feel empowered to act decisively. I think the leadership and people management skills that I assimilated during my time as an officer in the Royal Navy, have stood me in good stead in my transition to civilian life.
What advice would you give to any ex-military personnel considering working in the oil and gas industry?
Believe that the transition is possible, understand their transferable skills in the civilian context and use their Resettlement time wisely.
What do you think will be the main challenges in our industry over the next five years?
I think the single greatest challenge to the industry over the next 5 years will be a significant skill shortage as the “great Crew Change” really starts to bite. Attracting new people (talent) is going to be tough. Bringing new blood in to this industry is the main challenge.
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ACHIEVEMENTS
KCA Deutag will be celebrating its 125th anniversary this year; do you have an interesting fact about our company’s history you can share?
We are the first and the only (to my knowledge) drilling contractor to have a fully qualified female Well Control instructor.
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In May this year RDS, the drilling facilities engineering division of KCA Deutag, announced it had signed a contract with Estaleiro Enseada do Paraguacu (EEP Overseas Limited), a newly established Brazillian shipyard. This contract signifies the first project between RDS and EEP.
RDS’ core business is to deliver a comprehensive drilling facilities engineering service at every stage of design, construction and modification. As such, RDS will assist EEP with the detailed engineering for the drilling facilities on the first of a series of six drillships to be built by EEP. The contract is the fourth Brazil related project for RDS and the work will be carried out in RDS’ Houston office.
Of a global workforce of more than 800 employees, RDS currently employs 250 professionals within Canada and the USA and expects this
number to grow to support major projects throughout the region. Other projects in progress from the Houston office include the design of an ultra deepwater semi-submersible, currently under construction in Singapore. The team are also defining the concept engineering for a rig to work in Angola’s offshore market, and are managing two large engineering projects for offshore Eastern Canada.
Simon Drew, Senior Vice President RDS, said: “I’m pleased that RDS’ presence in Houston is continuing to grow and develop. This contract with EEP Overseas Limited will help us continue building on our strong reputation, both in Houston and in the wider industry, as the leading drilling engineering design specialists. Additionally this is a development of our presence in the Brazilian market, which we see as another key growth area.”
RDS Houston secures significant growth opportunities
RDSnews
Houston Office Moved to New Premises situated within 11757 Katy Freeway, Suite 600, Houston, TX 77079. Tel: +1 832 379 7300
RDS Sports & Social Club in London officially launched last year, and is made up of six dedicated volunteers who attend a meeting once a month to discuss and organise events which they believe would be inclusive to all at RDS London.
has enjoyed significant success, and this can be attributed to the employees who ensure ambitious targets are met. In my experience, a Bentec person is confident, inventive and determined, and these characteristics reflect in our company’s character.
One thing I’ve witnessed time and again is a constant strive for improvement. The onshore drilling sector is a constantly evolving industry, and we must ensure we work as a team to keep up with these developments. Moving into the US market is high on our list of priorities and Bentec has the clout and industry knowledge to move into new areas. Further company development, new product ranges and extensive training of our talented staff are high on the agenda.
Our technologies and products continue to exceed customer expectations, but our people drive our future success. Plans to move into the offshore market are gaining momentum. We have recently sold our first 500-ton Top Drive for use on an offshore drilling rig in Azerbaijan.
So far we have closed contracts for a 450-ton Euro Rig in New Zealand and ten additional Top Drives. In addition to this, two 500-ton Top Drives will be built for an operator in Venezuela and for a Saudi Arabia-based project and latest a 500-ton Top Drive for a contractor in Oman.
This year we aim to enter the US market, continue to cultivate our services in the offshore sector and build an even stronger team of people. Our skilled personnel will make the difference between success and failure; we will rely on our vast collective experience to make waves in the US marketplace. We tested the water at this year’s Offshore Technology Conference (OTC) in Houston, and found the US marketplace to be dynamic and vibrant and one where we could thrive.
Delivering continuously high performance to our clients is of paramount importance. We created a new structure for our after sales service department, this includes spare
parts management, training, after sales support, service solutions, customer support operations and the repair shop. Existing customers remain committed to Bentec due to our transparent, professional and honest approach to business.
Our employees readily show initiative and a level of skill to ensure large contracts like these are seamlessly signed, sealed and delivered. Our staff reflects the ambitions of the company and the future looks bright for Bentec.
Our people hold the key to future success
Dirk Schulze, CEO Bentec 7
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As the Business Efficiency project prepares to enter its second wave, Lead Project Manager Kevin Marr explains why KCA Deutag’s people are a crucial component to its overall success.
The scheme aims to increase EBITDA (earnings before interest, tax and depreciation and amortization) by up to £68m per annum by the end of 2014. Major improvements have already been achieved across the board, including overhauling the SAP procurement process and identifying SAP procurement efficiencies strengthening data quality. A new automatic Purchase Order (PO) process and a new automatic order for consumables (modelled on Amazon) have both been piloted to streamline processes and improve productivity. Those early successes, including realising 25% of the projected savings, are a reflection of better practices. But as the Business Efficiency project approaches new
Let’s Step Forward
spend rather than cost cutting,” Kevin added. “More than 50% of the savings we generate will come from our external supply chain. Ultimately, it’s a necessary restructuring. The past 12 years we’ve experienced a flurry of acquisitions and growth. Despite the expansion we never did an overall review of how the business is structured and managed.”
“We’ve now streamlined the head office function and devolved management to the various business units. Head office will no longer run the business on a day-to-day basis. Instead, it will set policy, ensure systems and procedures are adequate and will monitor the business.”
The value generated from Business Efficiency fuels future expansion and frees up cash for future investments. But it also creates clarity.
challenges its not just processes and procedures which will see it through. Instead, it will be the support and participation of KCA Deutag’s own people who will help it reach major milestones and improve the firm’s bottom line.
Kevin said: “The programme is sponsored from the top, but when it comes to implementing and sustaining these positive changes all of KCA Deutag’s employees from the rigs, to the office, to the management have a role to play in ensuring its success. It needs to be embraced by all levels in all locations.” “Business Efficiency will be instrumental in KCA Deutag becoming the healthiest, best version of itself. It will ensure we continue to grow and are firmly positioned for future growth and investment.”
The programme was implemented after 12 years of business expansion. “Business Efficiency is about getting value for the money we
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“The Business Efficiency project is there to ensure our long-term success as a company. In the past decade, we’ve expanded into new territory, secured headline worthy deals and fostered pioneering innovation. But as we’ve matured we’ve also outgrown many of our policies and processes.
Business efficiency is about reshaping those policies and
“The Business Efficiency programme can only be successful if everyone in the company is involved. This is not a top down initiative imposed by management. Its success depends on participation and commitment from staff.
All staff are encouraged to focus on what we can do better as a company and be prepared to
HIGHLIGHTS
NEIL GILCHRIST
NORRIE MCKAY
speak up with ideas. If you are aware of waste or inefficiency in your area of responsibility then please take action today.
Ultimately, the Business Efficiency programme is a key initiative for KCA Deutag. It’s absolutely vital that we improve the performance of the company to create a strong and sustainable business, generating good results and capable of attracting investment. This can only be achieved through each of us focussing on how we can carry out our role more efficiently and effectively than before. We see many great examples of people right across the organisation doing this. We see rig staff who are managing stock much more effectively, rig management who are increasing the follow-up under contracts to ensure we are billing all relevant expenses and office staff who are bringing forward excellent ideas to reduce overhead expenditure.
• On track to deliver the planned $68 million of savings.
• Wave 1 Procurement initiative will deliver almost $14 million of annual savings on $150 of spend = 9.4%. Wave 2 plan to address a further $188 million.
• Business Efficiency process rolled out in most countries, significant opportunities for efficiencies are being identifies and implemented.
• Savings tracking methodology is being prepared for all initiatives. – 85% completed.
Business Efficiency will make a substantial contribution to ensuring KCA Deutag’s success today and longevity tomorrow. We can ensure our own healthy financial future by taking the initiative to move our financial performance up to the next level.”
Neil Gilchrist, Chief Financial Officer
processes to serve us better as we grow.”
Norrie McKay, Chief Executive Officer
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various functions enable the graduates to fulfil the steps of the programme. Bert Hidding, a Toolpusher on the T201 in Brunei whose supplementing duties include coaching for the GDP tells Venture: “Years ago this type of graduate training was common practice. Clients would have their graduates training on the rigs to get their practical experience. I am glad to see that our company is doing the same thing now. We all know the ‘great crew change’ is coming and we need to be one step ahead. It is rewarding to see good results and people moving on in their positions.”
John Nichols who currently has 3 Graduates working in the offshore group tells Venture: “We have had steady throughput of graduates, our aim has always been to give them as much exposure and responsibility as possible whilst ensuring the right support was available. The graduates we have had assigned have worked in a wide variety of roles, as part of shipyard project teams in key
From left to right: John Nichols, Andrea Shiels, Gavin Sutherland, Sandra Henderson, Gemma Slater, Jeremy Townshend
supporting our Graduates at the Offshore Achievement Awards.
Supporting the Graduate Development Programme
The Graduate Development Programme (GDP) receives insurmountable assistance from the people of KCA Deutag which is crucial to the success of the programme. The GDP aims are to identify and recruit quality graduates who have the potential to become KCA Deutag’s leaders of the future. Our graduates promote and instil our worldwide standards and core values wherever they go, endorsing best practice and The KCA Deutag Way at all times.
Since 2009 we have had Graduates working in Russia, Kurdistan, Spain, Oman, West Africa, East Africa, South Africa, South America, Libya, Singapore, Canada, Brunei and the North Sea. This worldwide co-operation and collaboration of the GDP team with Country Managers, Rig Managers, Coaches and HR departments on a world-wide scale is pivotal to the success of our programme.
The support that GDP receives from our fellow colleagues and management worldwide is crucial; our coaches in particular have been a fantastic asset, taking the graduates under their wing and providing them with the guidance and encouragement needed. Throughout their first 2 years in the programme, graduates are led from junior rig crew positions; Roustabout, Roughneck, Floorman, to senior rig crew positions; AD, Driller, Toolpusher. A combination of rig based assignments and office assignments in the
roles such as in charge of yard safety, cost and planning as well as dealing with the start-up of operations for new clients in new countries. Recently one graduate transferred from the African operations, to the Brunei operations as an Assistant Rig Manager; only to find he immediately became the temporary Rig Manager. Overall we have seen a number of graduates fill some key positions which has been a huge help whilst they have been exposed to a huge variety of operations.”
As many of our graduates are reaching their goals of Assistant Rig Manager and beyond, the leadership and expertise gratefully received from our experienced employees is required now more than ever. We look forward to developing the Graduate Development Programme as the needs of our business continues to grow; knowing that along the way we will continue to be greeted with the infectious enthusiasm of our people.
From left to right: Martin Thomson, Dave Wilkinson, Callum Wilkinson, Jeanette Rigby and Jeremy Townshend.
PlacementProgramme
Being on placement at KCA Deutag has been a fantastic experience and a great opportunity that I thoroughly enjoyed. It has been a great introduction to office life, and the skills and understanding gained will prove invaluable in preparing for a fulltime career in the industry.
I joined the Performance Services department in June 2012, and at that time I was unsure what career path to take,
however, my role has consisted of a wide variety of activities that has enabled me to clearly identify areas of the business I enjoy and can see a future in. In joining the team I have been able to provide support not only to our department, but to other functions and take full advantage of my year here. The placement year is really what you make of it; there are opportunities to take part in various initiatives that the organisation is involved in, not to mention frequent training courses aimed at developing skills. I found you were actively guided and encouraged to take initiative and create a role that was your own – this resulted
in a unique position that each student could take pride in creating and occupying.
Winning the KCA Deutag Scholarship Award came as great shock, I couldn’t believe it. I would like to thank my former line manager Dave Wilkinson for all his help and support throughout the year. He went out of his way on countless occasions to ensure my short time was as valuable and productive as it could be. He was able to clearly identify areas I could have improved on and focussed tasks around improving these. I plan to continue to uphold his high standards set across the department and repay KCA Deutag tenfold for the experience I have gained from this placement.
I would highly recommend to students to follow the placement route with KCA Deutag.
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KCA Deutag UK have commenced delivering a new course aimed at teaching non-supervisors in the area of Safety Leadership and Behavioural Safety. The course is being delivered in association with Intertek at a location in Aberdeen.
Jim Paterson tells us about the link to Safe2Lead. “I was involved at the conception of Safe2Lead and it was always the intention to deliver Safe2Lead to all KCA Deutag personnel in a supervisory role and then provide that training to those in
non-supervisory roles in order that all personnel working for KCA Deutag were schooled with the same objectives in terms of delivering an incident free workplace. I now see this as the natural progression that was an objective when Safe2Lead was conceived.”
However, there is a difference here in that Stop2Think has been developed with specific aims in mind based on recent incident type history. This is in an attempt to move from the current plateau of safety performance to a level of zero incidents.
As well as two pilot courses, five courses have now been delivered and feedback from attendees has been very positive. In the same vein as Safe2Lead, each attendee commits to delivering a personal change they will use at the worksite. This in turn is monitored by the attendees line supervisor in terms of progress and improvement, thus closing the learning loop that is another aim of the course.
This is further supported by feedback from the delegates which
include:“The course was very informative, it really makes you think and re-assess safety in the workplace,” Roustabout Ninian Central Platform“I am going to take my learning’s back to the platform and pass on my knowledge to others,” Roustabout Tiffany Platform.
For additional information on this course, please contact UK Operations Manager Jim Paterson at [email protected]
The course encompasses
the following elements:
•Workingaspartofahigh performance team•Vision,values&expectations•Communicatingforsafety•DynamicRiskAssessment•Pressuresandchallenges•Personalresponsibility•Situationalawareness
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What are the most important decisions you make as the Group Company Secretary and General Counsel?
The most critical decisions I make are very simply when to say yes, when to say no and when to ask a lot more questions. This applies to every aspect of my job from responding to a whistleblowing allegation of potentially improper behaviour to assessing the legal aspects of a commercial bid.
Which do you see as most important to KCA Deutag—mission, core values or vision?
I think our core values are what sets us apart. Our mission and vision for the company are critical but for me, achieving those is meaningless if we don’t deliver in line with our core values of health and safety, valuing all people, business improvement, environmental stewardship and business integrity. Any revenue that is earned without regard to those principles can be lost in a heartbeat. But more importantly, it is our values that make this a company that I am proud to work for and what I think makes this a great place to work.
How do you communicate the “core values”?
First and foremost I hope I communicate core values by the way I behave. I will never ask someone to do something that I am not prepared to do myself and hope that the values are evident in my work, my communications and everything I do on a daily basis. I make time to discuss values and expectations with my team, I will speak up when what I see is out of step with core values and I expect to be challenged if my own behaviour is not to up to scratch.
What is one characteristic that you believe every leader should possess?
You need to be a great listener and be able to observe not only what you hear but understand the significance of what is not said. Claude Debussy said that music is the space between the notes, and in my experience people and businesses are much the same.
What do you feel are the biggest challenges facing KCA Deutag today?
Recruiting the right people to manage our growing operations in a market which is highly competitive and already struggling to cope with demand. Following on from this, ensuring that we motivate, train and develop our staff so that this is a company where people see a real future for themselves.
Can you name a person who has had a tremendous impact on you as a leader? Maybe someone who has been a mentor to you?
My former boss Robert Armour, he was both an excellent lawyer and a great boss. He was always a gentleman, supportive without micro managing, inspiring, and someone who really lived his values. He is still the only person I know who can eat a cream cake while on a teleconference.
Louise Andrew
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OUR PEOPLE
An insight to the Group Company Secretary and General Counsel of KCA Deutag
For 7 days KCA Deutag Drilling GmbH granted leave from my job so that I could carry out my emergency volunteer work with the Red Cross, during the floods in Sachsen-Anhalt, a county in the East of Germany.
At around 1 o’clock on 8th June 2013 my phone rang. It was Henrik Bosink on the line, District Manager of the German Red Cross. “Is your bag packed?” he asked me. “We need to leave immediately and take our boat to Sachsen-Anhalt.”
At a local sports hall (our accommodation for the next few days), we met up with other Red Cross groups. From then on we reported to the local Emergency Task Force who charged us with various jobs. Our main responsibility was to secure the land dykes. We worked day and night building new dykes with
Bake Off fundraiser for Friends of AnchorThe Charity committee at the Aberdeen office organised four events that took place every Friday morning, where staff competed in a Bake Off Challenge. Winners were chosen through a blind tasting, and all staff would vote for their favourite each week. We raised a grand total of £700.73.
Summer brings catastrophic flooding of the River Elbe
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sandbags and increasing the height or strengthening existing ones. On one section of dyke, which had given way, we were assisted by army helicopters moving Bigbags into place.
I am proud to work for KCA Deutag – they not only support career development but they also supported me in my volunteer work. KCA Deutag even made a donation to the German Red Cross. A grateful thanks to the company I work for in supporting a cause I volunteer for.
By Thorsten Weelink, Quality & Safety (HSEQ), Bad Bentheim
OUR PEOPLE
KCAD Bake offThe Great
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KCA Deutag secures offshore contracts with new clients
In July 2013, KCA Deutag announced the award of two offshore contracts with new clients for work in South East Asia and Gabon. These contracts are a further representation of KCA Deutag’s continued effort to increase its presence in the global offshore shallow water market.
The first contract is a two year operating and maintenance drilling services contract for the Shwe Platform based in Myanmar with Daewoo International Corporation. The second contract, with Tullow Oil Gabon SA, is for the provision of KCA Deutag’s jack-up rig, the Ben Rinnes. The scope of the work is the drilling of two wells, with the option for an additional well. Work commenced in July 2013.
Rune Lorentzen, President of Offshore at KCA Deutag, said: “The West African market continues to be a major hub of activity for the oil and gas industry, and one where we have an established presence. Establishing new relationships in countries such as Gabon demonstrates how vibrant this area continues to be.“
UK sector of the North Sea
KCA Deutag announced the award of significant drilling operation and maintenance contracts for work in the North Sea. These awards represent a long term commitment with core clients TOTAL E&P UK, EnQuest and CNR International (CNRI).
KCA Deutag was awarded a contract with Total E&P UK to provide drilling operations and maintenance services on the Alwyn North and Dunbar platforms in May 2013. Both contracts have already commenced and have a firm two year commitment with options for an extension of up to two years.
EnQuest has also signed a significant contract with KCA Deutag for a four year extension of its drilling operations and maintenance contract for both the Heather and Thistle platforms.
Lastly, a substantial contract extension was awarded by CNRI. This five year extension incorporates drilling and completion services contracts for the Ninian North Platform, South and Central Platforms, the Murchison Platform and the Tiffany Platform in the North Sea.
NEWS
UPDATE
In June this year KCA Deutag, made public the award of a contract with Statoil for the management, operation and maintenance of two Category J jack-up rigs which will operate on the Norwegian Continental Shelf (NCS). These rigs will improved recovery from existing fields and fast and effective development of new fields in the future.
The contract is for an initial period of 8 years with the option to extend by 4 further periods of 3 years, meaning the contract could potentially last for up to 20 years. The contract value is NOK 5.2billion (USD 900million) for the initial period, and NOK 12.8 billion (USD 2.2billion) including the option period.
Norrie McKay, CEO at KCA Deutag, said; “We are delighted to announce this significant award from Statoil. Alongside our existing operations, this will spearhead our strategy to become the leading drilling contractor on the Norwegian Continental Shelf. This award enhances our already significant business in Norway and also sets a precedent for KCA Deutag to target further drilling operations and management contracts on newbuild mobile offshore drilling units that are third-party owned.” KCA Deutag will also be responsible for providing operations input into engineering design and
supervising the construction of the Category J jack-up rigs. Each tailor-made rig will be owned by the Gullfaks and Oseberg licences and be specifically designed to operate on both surface and subsea wells.
This contract adopts an innovative approach where a mobile offshore drilling unit is owned by the Licenses instead of the drilling contractor and supports Statoil’s goal of ensuring the strategic rig supply required to address their long-term drilling requirements. KCA Deutag also operates eight other platform drilling rigs for Statoil on the NCS. The award builds upon a productive working relationship with Statoil that spans almost 30 years. During the initial engineering and construction phases, a joint Statoil and KCA Deutag team will be working alongside contractors Samsung Heavy Industries (SHI) and National Oilwell Varco (NOV) at the shipyard. This will involve the relocation of key personnel to South Korea to provide input during the initial engineering stages of the project. SHI will be the rig builder and NOV will provide the major drilling components.
Rune Lorentzen, Chairman for KCA Deutag Drilling Norge, said; “This is a key milestone for KCA Deutag. Today’s contract award extends a long standing and productive working relationship with Statoil
and recognises our efforts to deliver continuous improvement and value to our Clients. Our vision is to be the preferred drilling contractor through measurable performance improvement and providing safe, effective and trouble-free operations. “We employ more than 1,000 people at KCA Deutag Norway and will provide substantial resources to ensure a successful start-up. This is a bold new chapter for all companies involved. We are excited about the prospects ahead.”
StatoilNEWS
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“We are delighted to announce this significant award
from Statoil.”Norrie McKay, CEO
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At this year’s Offshore Europe Conference, KCA Deutag will be leading a keynote session focusing on ‘Taking Operations to Frontier Areas’.
Taking place on Wednesday, September 4th between 14.30 and 17.00, the panel will discuss the challenges and opportunities that frontier areas offer to the oil and gas industry. It will focus specifically on East Africa, Eastern Europe, Myanmar, Iraq and the Arctic – areas that have recently become an important focus for the industry. In addition to local content requirements and the ability to operate under different regimes, what else does the industry need to
implement in order to assure sustainable development, environmental responsibility, profitable business and ethical practices in these and other new frontiers? The panel discussion will address the learnings acquired from other locations and debate their application in these relatively new oil and gas provinces. The session will feature a mix of senior representatives from operating companies and contractors, as well as politicians.
To attend the conference, register for free at www.offshore-europe.co.uk
Cycle round the world
Arthur Murphy, based in Aberdeen, has cycled to work every day, which is 11 miles per day since October 2005, this adds up to over 24,906 miles. By the year 2014 this will be the equivalent to cycling round the world. Well done Arthur.
Dedication to the job
Sakhalin had a snowstorm where over a meter of snow fell.Ludmila Mescheryakova - Sakhalin Island Chief Accountant , put on her skis, put her pet dog in her backpack and skied cross country to get to the nearest clear road, just to make sure she was at work.
That’s dedication for you.
ACHIEVEMENTS
Taking Operations to Frontier Areas
Where in the world
September 3rd – 6th
Offshore Europe 2013 Aberdeen Conference Centre Attending Jack Winton, Norrie McKay and Rodrigo Rendon
September 9th-10th
Celle Drilling 2013 – The Way Ahead, Germany Attending Thor Noevig and Peter Marquardt
September 25th-26th
ICAD Drilling HSE&T Europe Amsterdam Attending Thor Noevig, Jack Winton and Peter Marquardt
PakistanIn January this year the crew of the T34 operating in Pakistan recorded a milestone– they reached their tenth year without a Lost Time Injury. During its time in country the rig has operated for two clients and drilled a total footage of 693,958 ft, covered 114 wells, completed 192 rig moves accumulating a total rig move distance of 182,767 km.
OmanIn addition to the earlier extensions of rig T-77 and T-210, Oman KCA Deutag Drilling Company recently has successfully negotiated contract extensions for rig T-51 and T-78 for a period of 4 years with 2 optional periods of 1 year each with our client Petroleum Development Oman. With the agreement, a total contract value of around $165 Mio out of $240 Mio has been secured whilst discussions now concentrate on rigs T-44 and T-66.
RussiaIn March 2013 KCA Deutag (Russian Operations) commissioned T320 and T321 in Buzuluk, Orenburg Region for “Orenburgneft” as a new Client with the T-322 to follow in August. All 3 rigs manufactured by Bentec, are mobilized to the location from Germany and Tyumen to operate in a completely new environment – both geologically and technically. These contracts help secure KCA Deutag in becoming a leading drilling contractor in the region, expanding operations further in Russia.
AzerbaijanChanges in the in-country management team: Martin Meredew has been appointed as RDS Business Unit Manager.Fraser Abernethy and Steve Baker have been promoted to Operations Managers with Graham Fiddes and Dave Wood promoted to Rig Manager for West Azeri and East Azeri respectively.
North Iraq - KurdistanOn 10th May, 2013 the crew of the Rig T-221 in Kurdistan (North Iraq) completed one year without a Recordable Incident. Rig T-221 is one of the new generations of BENTEC Speed Rigs especially designed to operate in the Middle East and Africa Region. During this period T-221 has completed the first well Harir -1 for Marathon Oil in harsh weather conditions (with snow of up to 1 m & temperatures dropping to -18° c) successfully and completed the first rig move to the next Mirawa – 1 location without any incident. Two of the local Kurdish crew members won the Best Set Card of the Month (Middle East) twice in the last 6 months, which demonstrates the commitment and Belief of the T-221 crew following the KCA Deutag Way.
As a global company it is important that we attend, exhibit and speak at international conventions and events to demonstrate our capabilities to current and potential clients. Here are some of the events we are looking to attend.
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Celebrating 125 YearsDo you have a story you would like to share about the history of KCA Deutag? Do you have any historical photographs of your time working for KCA Deutag? Are you doing anything to celebrate our 125th anniversary in September? Please contact us by email on [email protected] or contact Kirsty Allan (marketing and communication coordinator) to be featured in the next Venture.
KCA Deutag and SAP.Partnering for success.
KCA Deutag’s SAP team has been accredited as an “SAP Customer Centre of Expertise”. This is awarded to relatively few SAP customers worldwide and only after we were audited on our processes and how we manage our SAP environment from both a business and technical perspective.
Integrated Management Systems (IMS)
COMING SOON
For queries, contact - [email protected]
Integrated Management Systems (IMS) is a management system which integrates all components of a business into one coherent system. The main objective of IMS in KCA Deutag is to create a system which
provides a clear, holistic picture of all aspects of the organisation and is focussed on supporting our personnel delivering wells safely, effectively and trouble free to our clients.
The system will be able to easily identify risks and connectivity of processes cross functionally.
Go Live DateMonday 30th September
