Page 40: of Maritime Reporter Magazine (May 2017)

The Norway Way

Photo: TechnipFMC

TechnipFMC’s Andersen & the way forward now that

BY WILLIAM STOICHEVSKI with their Xmas trees (those complex, “hydrant-like”

How has the merger that created TechnipFMC — which

Ann Kristen Andersen heads up valves atop oil wells). On an annual basis, a system in- answered calls for lower offshore costs in tough times tegrator makes 200 trees a year. The largest oil company — changed the way you do things?

oil? eld projects as offshore ser-

The merger is going to change our offering dramatically. buys 20 trees a year. Should you go to the operator that vices and equipment supplier

We now have vessels in our toolbox. We’re now a services buys 20 trees or to the (supplier) for access to over 200. and equipment provider, and (with those), we have set Why don’t we standardize around the supplier-led solu-

TechnipFMC’s managing direc- upon ourselves the task of leading change in the industry. tion. I think this is what’s happening in the industry now.

The operators are letting the suppliers lead through their tor for Norway and Russia. She standardizing and gaining signi? cantly on cost and on lead

We’ve heard the sentiment that the industry was slow to started her job on the ? rst day time. That’s interesting, especially when you want to tap respond to skyrocketing costs. What’s your view?

The product we’ve been producing was a super-pro? t into small pockets of oil and gas via tiebacks, etc. of February 2017, a month af- product (oil), so we hadn’t really been thinking like (other

How real are the new breakeven oil prices we hear for commodity-based industries). Now with the change in oil ter a merger that changed the oil company projects?

price, we need to think differently. These mechanisms that company and has already partly apply to every other industry actually now apply to ours. The oil companies have really made a change in their

I think the days of super-pro? t oil and gas are over, and breakeven cost. Statoil is talking about (oil? eld project changed an industry beginning rather than just talking about technology it’s time to talk breakeven oil prices of) below $30, not below-$50. The about the adoption of technology and how it’s been the average costs savings for the industry has reached 30 to to ramp up activity with the oil great enabler of an industry. 40%, helped by some standardization; contract changes price buoyant at $55 per barrel.

A and our own product integration, where you no longer make product A & B. You make ‘C’ that integrates both

You said there’s a re-industrialization underway in the

A & B (like heated TechnipFMC pipeline) … I’ve been industry. What do you mean?

We’ve looked at product cost reductions; simplifying our asked if the changes we’re seeing in costs per barrel are systems; standardization; integration and new contract sustainable. I would say that’s not the case. All suppliers

Photos models. What we’ve seen is that by reducing the number now are selling things at prices that are not sustainable. of parts; reducing weight; reducing variances that you get So, the speed of change is important. Having said that, a

Above: TechnipFMC is revolutioniz- access to (order) volume and you can then standardize lot of it must be sustainable because there’s no $150 oil ing the subsea industry from con- your product. It’s what I call supplier-led solutions. anymore, and there’s a limit to how long you cannot main- cept to delivery and beyond.

tain your vessels, not recruit new people, etc. We’re hop- ing that when this wave of new projects at very low prices

Why should the supply chain lead? Haven’t operators

Above, right: Ann Kristin Andersen — when that hits us big-time and we’ve already ? ushed been the ones ordering tailor-made solutions?

MD, Norway & Russia. Take all the oil companies in the world (about 200) and out all the higher-margin projects — that we’re ready to then take the number of (offshore) equipment providers make money 40 Maritime Reporter & Engineering News • MAY 2017

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