Offshore oil industry suppliers fight to be fit for frugal future

ArticleEnergyApril 11, 2018 - 7:27:32 AM

Offshore oil industry suppliers seek other sources of revenue in Norwegian sector and are cutting costs further

RISING more than 20 metres above the sea, Statoil's Aasta Hansteen platform towers over the Stord shipyard in western Norway, representing the height of engineering in the offshore oil sector.

It will probably be the last platform of its kind to leave here. Nearby is what the future is more likely to hold for yard owner Kvaerner: the rusty Njord A platform, which it built two decades ago, is back for a refit so it can continue production in the North Sea for another 20 years.

Oil companies posted bumper profits in the fourth quarter, benefiting from rising crude prices and cost cuts made during the slump years between 2014 and 2017, but they have made it clear in recent months that they will not let costs rise again.

For Statoil, this has meant calling time on giant oil platforms and instead looking to build more modest installations and, where possible, revamp existing infrastructure...

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