KONGSBERG'S POSITION IN THE OFFSHORE MARKET
The offshore market encompasses exploration, development, recovery and transportation in relation to oil and gas. In addition, there are support functions such as supply services and operative support, as well as maintenance and service activities on platforms and vessels. KONGSBERG is a supplier of products and services to all these segments.
The demand for energy is growing steadily, as is the consumption of oil and gas. It currently constitutes the bulk of overall energy consumption. In the light of continued economic growth, especially in Asia, consumption will continue to grow in the years ahead.
High oil prices are an incentive for rising investments in all segments, from exploration to production and transportation. Activity levels are particularly high in the search for new recoverable reserves. Efforts are devoted to increasing recovery rates on existing fields and to finding new deposits.
In 2007, KONGSBERG had an especially good influx of orders for purpose-built offshore vessel and floating production, storage and offloading (FPSO) vessels. An FPSO is a complex vessel, and KONGSBERG is well qualified for landing large FPSO contracts. KONGSBERG has strengthened its market position by winning market shares and gaining growing acceptance for its integrated product philosophy.
All the new offshore vessels and platforms contracted in recent years have claimed a substantial share of existing shipyard capacity. This has resulted in higher prices and long delivery times, a situation that appears to be slowing the pace of contracting new vessels in 2008. It is nevertheless expected that the contracting rate will continue to be relatively high, so KONGSBERG expects a good influx of new orders from this market.
Dynamic positioning is one of KONGSBERG's most important and most widely recognised products. Along with automation and surveillance systems, this has contributed to a continued strong position in the offshore market, and new areas of application gave orders a good boost in 2007.
Integrated operations are an important target area for the Group. This is a relatively new market and KONGSBERG is well positioned to become a substantial player.
MARKET DRIVERS AND TRENDS
Investment activity in the value chain
Given the continued rising demand for oil and
gas, activities are expected to increase in:
- Exploration, especially in the deepwater segment
- Development in general and late phase production
Growth in different geographical areas
Investments vary from one geographical area to the next.
This is often determined by oil reserves and the level
of exploration and production activities.
New technology – new market niches
More demanding oil and gas fields create new market niches.
This creates a need for new technological solutions.
- Improved late phase production and focus on producing smaller fields;
- Better utilisation of existing infrastructure;
- Improved production technology and methods – integrated operations.
Our most important product areas in the offshore market
Dynamic positioning systems
- Steering systems that make it possible to keep a vessel/platform in the same position under demanding weather conditions
Subsea (underwater activities)
- High-technology hydro acoustic products for seabed surveying, and underwater communication and positioning
Automation and surveillance systems
- Systems for surveillance and the control of ships' engines, cargo, manoeuvring and propulsion
- Simulators and training systems for most system products
Process automation
- Systems for controlling and coordinating operations on an oil platform or a production vessel
- Security systems for warning or shut downs of production due to system malfunctions, when people are in danger, or for fires or gas leaks
- Dynamic process simulators to design and verify process facilities and control systems
- Integrated operations
Navigation systems
- Equipment for ships' bridges