Finpro's Maritime business seminar on 24.11.2016_Norway

1. OPPORTUNITIES FOR FINNISH
SUPPLIERS IN THE NORWEGIAN
MARITIME & OFFSHORE MARKET
Jaakko Isotalo / Timo Un0nen
Gateway Norway A/S

2. Contents
• The Norwegian Offshore Sector
• The Norwegian MariAme Sector

3. Norway is home to a
world-leading offshore
and mari0me cluster

4. The Norwegian Offshore
Sector
• Although investment has been declining somewhat in
2015, it’s currently at the third highest figure in
history. In other words, we are far from a crisis. – Gro
Bækken, CEO in Norwegian Oil and Gass.
• There is plenty of oil leG to find. The horizon of the
worlds oil age moves constantly. So it has been, and
so it will be; for many decades to come. – Dag Harald
Claes, Professor at University of Oslo

5. Norwegian Oil and Gas
The oil and gas sector is Norway's largest measured in
terms of government revenues and investments.
EUR 194 billion
EUR 22 billion
EUR 83 billion
EUR 21 billion

6. Accumulated resources on the
Norwegian conAnental shelf
Around 38 % of all remaining resources on the
shelf is s0ll undiscovered.

7. Historical and expected
produc0on in Norway,
1970-2020
Oil produc0on rose in 2015 for the second year running, and gas
sales reached a record level. In the next few years, total
produc0on is expected to remain high and stable.

8. Overall Cost by Category
The lower ac0vity level in 2015 resulted in a considerable reduc0on in
overall costs, but the cost level remains high in historical terms.
Historical figures for 2010-2015 and forecast for 2016-2020
Es0ma0on. Total value in 2016 = EUR 26.17 billion

9. Investments by Main Category
Historical figures for 2010-2015 and forecast for 2016-2020
Four new fields – Valemon, Bøyla, Knarr and Edvard Grieg – started
producing in 2015. A further nine were under development at the end of
the year, and four new plans for new developments (PDOs) were approved
by the authori0es during 2015. One of these was for the first phase of the
Johan Sverdrup project, which will help to maintain a high level of
investment in the years ahead.

10. Johan Sverdrup – GeneraAng
GiganAc Value
• Located on the Utsira Height in the North Sea, 155 kilometres west of Stavanger
• Oil from the field will be piped to the Mongstad terminal in Hordaland. The gas
will be transported via Statpipe to the Kårstø processing plant in North Rogaland
• First-phase investments es0mated at NOK 117 billion / EUR 13.08 billion (2015
value)
• Total produc0on revenues of NOK 1,350 billion / EUR 151 billion over 50 years
• Corpora0on tax payable to the Norwegian state calculated at NOK 670 billion /
EUR 75 billion
• Daily produc0on during first phase es0mated at 315,000 – 380,000 barrels per
day
• Peak produc0on es0mated to reach 550,000 – 650,000 barrels daily
• Water depth is 110 - 120 metres; the reservoir is located at a depth of 1900
metres
• The field will be operated by electrical power generated onshore
Produc0on start-up is scheduled for end 2019. The field will be
developed in phases. The first phase involves the
establishment of a field centre consis0ng of four plalorms.

11. Gas Exports from the
Norwegian Shelf
Norway is the third largest gas exporter in the world. Nearly all
Norwegian gas is sold on the European market. Gas produc0on
has increased in recent years, and therefore accounts for a
larger share of petroleum produc0on than before.

12. Historical and expected
produc0on in Norway,
1970-2020
Norway is the third largest gas exporter in the world and covers
more than 20 % of total European gas consump0on.

13. The Supply Industry
Sketch of a field during development and operaAon.
The Norwegian supply industry includes more than 1.250 companies
supplying goods and services for all stages of the value chain, including
seismic and engineering services and drilling rig equipment; valves, nuts and
hoses for the shipyard industry; and advanced offshore supply and service
vessels and subsea technology.

14. The Norwegian Mari0me Sector
Norway has one of the largest and most comprehensive
mari0me sectors in global terms. The offshore fleet is the
second largest in the world and the industry is characterized by
its high competence, innova0on and advanced technology.

15. Geographical Distribu0on of
the industry in Norway

16. Norwegian Yards 2016
• The big shipyards went into a new year with a total order
book of EUR 3.3 billion. The orders from the offshore
segment has experienced an abrupt decline in the past year.
• The total order amount for next year is s0ll not bad.
• Order amounts shows a spread to other ship types. It
provides strength to be not dependent on only one market.
• A total of 13 of the total 62 vessels over 40 meters to be
built at the Norwegian yards are well boats, and it is booked
6 large fishing vessels.
• Norwegian yards is clearly helped by the weak NOK, which
means that prices are more compe00ve.

17. Opportuni0es at Norwegian
shipyards
• Turnkey ou`iang: interior areas, public areas, deck areas, engine rooms
• Ship engineering & design
• Ship machinery & systems including propulsion and power systems
• Electrical equipment & systems
• Deck & interior equipment, HVAC & catering equipment
Opportuni0es exist for Finnish system and equipment suppliers, material
and component suppliers, subcontractors for metal works, and turnkey
suppliers.

18. Order book: changes / flexibility
OSV
Well/Service
Wind
Fishing
Ferry
Mining
Governmental
Yacht
Passenger/Cruise
OSV
Well/Service
Wind
Fishing
Ferry
Mining
Governmental
Yacht
Passenger/Cruise

19. Post ”crisis” ac0vity at
Norwegian Yards
• Offshore Mining
• Offshore Wind
• Pleasure Yachts
• Fishing Boats
• Small crass catering to the fish farming industry
• Ferries
• Small cruise vessels

20. The picture is nearly as
unfortunate that one gets the
impression
Orderbook Fitjar Mek. Verksted 26. Sept 2016
Owner Name Type Various Delivery
Seistar Holding Seihav HFMV LFC3600 09.16
Seadive KS Mul0 02 HFMV W 15-8 09.16
Servicebåt SAS Virgo HFMV W 15-10 09.16
Servicebåt SAS Orion HFMV W 15-10 10.16
Servicebåt SAS TBN HFMV W 15-10 11.16
Servicebåt SAS TBN HFMV W 15-10 12.16
Marnius
Aquaservice Restless TBN HFMV W 15 12.16
Servicebåt SAS TBN HFMV W 15-10 Op0on 17
Servicebåt SAS TBN HFMV W 15-10 Op0on 17
Servicebåt SAS TBN HFMV W 15-10 Op0on 17
Servicebåt SAS TBN HFMV W 15-10 Op0on 17
Napier TBN
HFMV P37
Napier Intent 17
Napier TBN
HFMV P37
Napier Intent 17
While several of the
tradi0onal "locomo0ves” in
the industry are struggling,
the smaller shipyards is
generally a far beuer off.
Fitjar Mek., Larsnes Mek.
and Moen Marin are
examples of shipyards which
all boast good order intake
so far this year. Within
workboats for aquaculture
the demand seem to be
good.

21. The Møre Mari0me Cluster
• Farstad Shipping
• Rolls Royce Commercial Marine
• Ulstein Group
• VARD
• Kleven
• Havila
• Brunvoll
• Skiptekniske
• Fiskerstand Vers
The mari0me cluster at Møre is a world leader in design, construc0on,
equipment and opera0on of advanced offshore vessels for the global oil and
gas industry.
Home to companies such as:

22. Kleven Yard in Møre – Current
Order book
Kleven Vers in Ulsteinvik, Norway, builds advanced offshore vessels. The
yard has effec0ve facili0es for early oulivng and hull assembly. Kleven has
in recent years invested heavily in automa0on and robo0sa0on of parts of
the hull produc0on, allowing the yard to backsource a larger part of the
building process to Norway.
Bnr Type of Vessel Design Name Owner Delivery date Yard
401 Expedi0on NVC 2140 TBN Hur0gruten July 2019 Kleven Vers
400 Expedi0on NVC 2140 TBN Hur0gruten July 2018 Kleven Vers
388 Fish harves0ng vessel SALT 425 FHV TBN DESS Aquaculture Shipping March 2018 Myklebust Vers
396 Stern trawler NVC 374 WP TBN Pesquera Ancora S.L.U. February 2018 Myklebust Vers
394 Trawler/purse seiner SALT 0155 Giue Henning Giue Henning AS December 2017 Myklebust Vers
387 AHTS SALT 200 AHTS TBN Maersk Supply Service October 2017 Kleven Vers
380 Live fish carrier NVC 387 TBN Sølvtrans September 2017 Myklebust Vers
395 Stern trawler NVC 374 WP TBN CDP Saint-Malo & Euronor September 2017 Myklebust Vers
386 AHTS SALT 200 AHTS TBN Maersk Supply Service August 2017 Kleven Vers
385 AHTS SALT 200 AHTS TBN Maersk Supply Service June 2017 Kleven Vers
393 Stern trawler NVC 374 WP TBN DFFU June 2017 Myklebust Vers
384 AHTS SALT 200 AHTS TBN Maersk Supply Service April 2017 Kleven Vers
375 Live fish carrier NCE 387 TBN Sølvtrans March 2017 Myklebust Vers
392 Stern trawler NVC 374 WP TBN DFFU February 2017 Myklebust Vers
383 AHTS SALT 200 AHTS TBN Maersk Supply Service February 2017 Kleven Vers
370 ESV MT 5006 MKII ESV TBN TBN October 2016 Kleven Vers
382 AHTS SALT 200 AHTS TBN Maersk Supply Service October 2016 Kleven Vers
372 CLV SALT 306 CLV TBN ABB 2017 Kleven Vers

23. Kleven builds up to four explorer
vessels for Hur0gruten Cruises
Due to a strong passenger volume growth in cruise travels, cruise ship
order books are at historic levels, guaranteeing that many European
shipyards will stay busy for years to come.

24. • Hapag-Lloyd Cruises orders two expedi0on cruise ships
• Vard Confirms Contracts for Ponant Quartet: four vessels.

25. Aquaculture
• Marine Harvest (Listed)
• Lerøy Seafood Group (Listed)
• SalMar
• Cermaq
• Grieg Seafood
• Norway Royal Salmon
• Nordlaks
• Nova Sea
• Bremnes Seashore
Norway’s long and jagged coastline surrounded by cold, fresh
seawater provides excellent condi0ons for aquaculture
ac0vi0es. Norway is the world’s leading producer of Atlan0c
salmon and the second largest seafood exporter in the world.
Important Companies:

26. Autonomous ships can be major
investment in Norway
Interest in autonomous ships is increasing and both industry
and research says that this could be the next revolu0on in
shipping. Autonomous ships with environmental friendly
technolgy will provide new business opportuni0es for
shipyards, equipment manufacturers and ship owners.
Green strategy for a blue industry.