Page 76: of Offshore Engineer Magazine (Apr/May 2015)

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Spotlight

By Elaine Maslin

Lessons learned with Kristian Siem

Kristian Siem was early in his career opportunities to reduce cost by standard- opportunities for employment. The when in 1978, with the market at ization and better planning in coopera- investment was highly speculative and rock bottom, he formed an investment tion with the contractors. very few were prepared to take the risk group to take a punt on a rig. Now 65, to invest. In order to obtain the neces- the founder and chairman of Siem Are new business models needed to sary equity capital for the purchase, we

Industries, and chairman of Subsea 7 address the changing demands in the had to accept shareholders who were and Siem Capital, as well as director sector, as the seabed becomes the a mix of unpaid vendors to Viking, of a host of other companies, has not new factory ? oor? whose objective was solely to recover looked back… much. Before starting his The trend towards more activity on the their claims and previous owners who own business career, Siem held several seabed will continue needed to cover their management positions with the Fred. and cost is a deci- downside through

Olsen Group in the US and Norway. He sive factor. However, the sale. There was, spoke to OE. whatever technical therefore, a con? ict solution is chosen, between the share-

When did you ? rst see the potential in there are opportuni- holders at the outset. the subsea technology and services ties for reducing costs Some of us wanted market and has it exceeded your not only by standard- to build a new drill- expectations? ization, but also by ing contractor for

DSND, the forerunner of Subsea 7, was better coordinated the long term and in the early 1990s a marine investment planning between the others wanted company with a diverse portfolio of operator and contrac- a quick pro? t. The vessels, including a few dynamically tor and by avoiding lesson is to align positioned offshore vessels. These were duplication of efforts. partner interests as chartered on term contracts to contractors much as possible at who did the work for the oil companies. What attracted the outset.

We thought the risk would be reduced by you to the o