Norway's offshore fabrication industry experiences dry season
06-11-02 Offshore fabrication yards in Norway are facing draught in the market and Aker Kvaerner's principal owner, Kjell Inge Rokke says the best solution would be to cut capacity.
Rokke says claims the reason for this situation is that oil companies do not leave it to the offshore support industry to develop and build the best solutions for efficient offshore production. He says this prevents contractors from using their best skills and competence, leaving the offshore fabrication industry with the relatively simple task of performing labour intensive work, such as welding, for which Norwegian companies are unable to compete.
A recent survey by Svensk Naringsliv, shows Norwegian industry workers cost $ 29.5 per hour, in the UK $ 19, in Italy $ 16.2 and in Singapore $ 9.1.On that basis, it is easy to see why Norwegians cannot compete for projects where the main task is welding.
Rokke further stated that unless the offshore supply industry is given the opportunity to apply its resources and
ingenuity in future offshore projects, offshore fabrication yards will simply disappear. At present, only one major fabrication contract is being bid in Norway for the 24,000 t of barge-mounted process topsides for the Snoehvit project.
Source: Hart’s European offshore petroleum Newsletter