Innovative engineering since 1842

DTI/Intsok UK/N Mentoring

Mentor: Wood Group Mentee: Peder Halvorsen Industrier

Presentation Aims/objectives Challenges Outcomes Recommendations

Innovative engineering since 1842

Halvorsen - history
1842 1929 1975 2001 2006 Engineering workshop established First steam boiler produced First offshore delivery First multidiscipline offshore delivery New offshorebase in Kvinesdal

Innovative engineering since 1842

Strategic Business Units

1: Halvorsen Offshore EPCIC: Process Facility Systems EPCIC: Rig & Drilling Modifications

Engineering & Design Construction & Fabrication Installation & Commissioning

2: Halvorsen Onshore 3: Halvorsen Fabrication

Innovative engineering since 1842

Halvorsen offshore
Prequalified multidiscipline supplier to the oil operaters, delivering directly to:

Innovative engineering since 1842

Wood Group - A Leading International Energy Services Company $4.4bn sales; 24,700 employees; Operations in 46 countries
Serving oil & gas and power industries worldwide A global market leader in: Oil & gas infrastructure engineering design for deepwater platforms & subsea pipelines Production support and enhancement for offshore and onshore facilities Electric submersible pumps (ESPs) and surface wellheads and valves Aftermarket services for industrial gas turbines

Wood Group in Norway

WG Production Facilities Studies Team, Operational Documentation Contract Mustang - BP Valhall redevelopment FEED and EPCm J P Kenny 40 people in Stavanger Stokman contract Gas Turbines - Repair and maintenance contracts with StatoilHydro, Talisman

Innovative engineering since 1842

Mentoring activities

Joint participation in all mentoring sessions 5 meetings in Flekkefjord, Aberdeen, Stavanger Access to other Wood Group companies experience and introducton to the supply chain of a large service contractor Awareness of the difficulties and complexities of the UK market for operators, clients, contractors Exchange and comment on Business Development presentations Joint working on prospective tender Entry onto Wood Group supplier list Maintained relationship for future activities

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Aims Wood Group

Maintain and enhance our profile with SMEs in the supply chain Maintain and enhance our profile in Norway Fulfil our responsibility as a major reputable company in the UK Build links with a wide range of businesses and people in Norway

Innovative engineering since 1842

Aims Halvorsen - initially

Explore the opportunities for Peder Halvorsen Industrier to build a strong brand on the UK market If yes, develop a strategy for entering the UK market

Innovative engineering since 1842

Objectives Halvorsen - initially

Establish strategic alliances and long term business relations in the UK market Gain a better understanding of how oil companies and the major contractors operate in order to align the company`s strategy and take the necessarry actions in order to succeed in the UK market. Gain a better understanding of cultural issues related o both national cultures as well as to those of the industry/companies.

Innovative engineering since 1842

Objectives Halvorsen - initially

Conduct a strategic analysis of the marketplace and develop an entry strategy and brand strategy: Identify the dominiating forces within the industry Identify relevant macro-factors Identify cultural differences and similarities Identify CFS Define Halvorsen`s competitive advantage in the UK market

Innovative engineering since 1842

Aims Halvorsen - revised

Conduct a revision of Halvorsen`s growth strategy offshore market Explore the business development opportunities, both domestically and internationally

Innovative engineering since 1842

Objectives Halvorsen - revised

How do we grow? How do we diversify and to what extent?

How do we prioritise?

Innovative engineering since 1842

Markets offshore
1. Modification & Maintenance Offshore Norway/UK market development 2. New rigs/systems global market market penetration

Innovative engineering since 1842

Modification & Mantenance Offshore

MMO 1: Process Facilities Systems EPCIC- projects Development of new technology New clients on existing market N, UK MMO2: Rig & Drilling Modifications EPCIC-projects Development of new technology New clients for existing systems N

Innovative engineering since 1842

MMO 1 Process Facility Systems

WHRU (EPCIC-project)

Customers:
Statoil - Hydro, ConocoPhillips -BP Vetco Aibel Aker Reinertsen Aker Kvrner AOP - KPS ABB Milj

Innovative engineering since 1842

MMO2: Rig & Drilling Modifications

EPCIC project:
Replacement

of dragchain on platform during operation

Solution

based on Halvorsens own study

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New rigs/systems global market

NR 1: Process Facilities Systems EPCIC-projects Development of new technology Norsok-projects Geographic regions to be researched: Singapore China UK

Innovative engineering since 1842

Halvorsen Steam Unit Ex Sone

Developed by Halvorsen for Hydro in 2004 Mobile container with steam unit for onshore and offshore installations (DnV 2.7.1) Placed and operated in explosive zone (Norsok Z-015) Customers: Hydro Sevan Marine IKM Gruppen NOFO

Innovative engineering since 1842

Outcomes

For Wood Group, the relationship with Peder Halvorsen has opened our eyes to the problems facing smaller companies within the supply chain, especially within a relatively narrow product range and geographical area. The joint working sessions have also made us realise some of the similarities in our business when entering a new territory; the new entrant must make maximum use of existing skills, existing client relationships, existing partnerships and existing trade support networks before trying to open up a completely new market. We believe the mentoring sessions have been useful to Peder Halvorsen in helping them focus on the critical issues and the most important priorities

Innovative engineering since 1842

Challenges

Things take time!

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The future

Wood Group is already building on its relationships within the Norwegian supply chain. We believe we already have good access to key clients within Norway, but we hope that our assistance with Peder Halvorsen (and Alustar in the previous programme) has helped to enhance our position as a responsible purchaser and collaborator. We can see opportunities for Peder Halvorsen to support us and work with us on future Norwegian opportunities, and also become a supplier to us for our UK and international activities Achilles and FPAL remain an essential entry ticket.

Innovative engineering since 1842

Recommendations

Agenda for events set in advance Make use of the knowledge and expertise within the group - both mentors and mentees - rather than outside lecturers. More speed-dating and group discussions Networking