Looking for a specific product?

Make a search for products & suppliers, articles & news.

International Growth Despite The Downturn

A new report by Menon Business Economics reveals that the Norwegian-based supply and service industry has strengthened its international market position, despite the global financial crisis. From 2007 to 2009, the industry’s international turnover increased from NOK 95 billion to NOK 118 billion, with the average Norwegian share in international offshore markets rising from 12% to 14%.

The report was prepared by Menon in June 1010 for the Norwegian Ministry of Petroleum and Energy to chart Norwegian offshore supply companies’ international activities. It found that the Norwegian petroleum-related offshore industry increased its turnover nearly 25% from NOK 195 billion in 2007 to NOK 244 billion in 2009, half of which was due to increased international turnover.

The most important regional markets are Southeast Asia, West Africa, the UK, USA and Canada, and Brazil and Mexico. But there have been variations in ranking over time, according to Menon. In 2007, Russia, Azerbaijan and the UK were central markets. In 2009, the largest international market was Southeast Asia, including Australia and India, with approximately 35% market share.

“The UK remains an important market ranking as number three,” said Gulbrand Wangen, managing director for INTSOK, the Norwegian oil and gas network organization. “However, and for the first time since INTSOK was established in 1997, a significant decrease in export to this market is visible. This downturn reflects the Norwegian supply and service industry’s successful in shift towards moving out of the North Sea basin.”

Growth in Asia, Angola, Brazil
An important reason for the extreme growth in the Southeast Asian market is the large export of drilling equipment to rigs and floating production storage and offloading (FPSO) vessels that are built or converted in shipyards in Southeast Asia, particularly Singapore. One benefactor of this trend has been the Norwegian Offshore & Drilling Engineering cluster NODE in southern Norway. The cluster comprises 50 technology companies focusing on drilling equipment. From 2000 to 2006, these companies increased their turnover from NOK 500 million to NOK 3 billion. In 2006, two thirds of that amount stemmed from export.

Norwegian offshore suppliers also significantly increased their turnover in the region Angola, Nigeria and West Africa, as well as Brazil, Venezuela and Mexico. These are also among the markets that are supposed to provide the most increase in international turnover going toward 2013, said Menon. Angola is leading the increase in Sub Saharan Africa, having outpaced Nigeria in oil production last year. In South America, the driver is the deepwater field developments offshore Brazil.

Menon predicts that the offshore market will rise in the coming years, but does not expect equally strong increases in all segments. In particular it forecasts strong growth in maintenance, modification and operation (MMO) services and drilling and a more moderate rise within other segments, such as production of fixed, floating and subsea installations.



 
Photo: Turnover by various geographic regions 2007-2009 (billion kroner). © Credit: Menon 2010



Related articles

Latest articles

Fish Vessels Go Electric

The Norwegian aquaculture and fishing industry has joined the green shipping wave with a number of pioneering electric fleet initiatives.

Norway’s Greener Future Fleet

Norway was the first nation to have a fully electric car and a passenger ferry. Now the country will make all future ferries green and a zero-emission maritime industry by 2050.

Could Iran be the Next Big Market?

Iran is opening up for billions of dollars in oil and gas investments after the lifting of decades-long sanctions. The Norwegian oil industry is cautiously eyeing possibilities.

Blue Revolution Center Pushes Aquaculture Farther Offshore

Marine Harvest and researchers plan to develop a floating laboratory for radical exposed fish farming technology to help the sector grow sustainably.

The Future of Shipping is Autonomous

Many are looking forward to driverless cars in the future. The shipping industry is testing vessels without captains.

Major Petroleum Province in the North

Cost cutting initiatives and new technology are paving the way for the Northern Norwegian Sea and Barents Sea to become the next major petroleum province on the shelf.

Norwegian Seafood Export Hits Record Numbers 2016

2016 was another record year for Norwegian seafood export with export value reaching 91,6 billion NOK (approximately $10 billion). The Norwegian Seafood Council presented the 2016 numbers at a conference in Oslo today.  

Portugal: Norwegian Cod Keeps the Bacalhau Traditions Alive

Portugal is a country of cod lovers and cod from Norway is a favourite. No other European country, uses up as much seafood and for sure not as much cod, per capita as Portugal. 

Norwegian Seafood Enjoyed Worldwide

Norway exported 2.6 million tonnes of seafood 2015. That represented more than 11 billion main courses. But the number of meals containing Norwegian seafood is possibly in the order of more than 20 billion. Seafood is ofte...