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Kongsberg Signs contract for drilling solution with Petronas

The Norwegian supply and service industry is in the forefront in terms of world-class technology and expertise for safe and environmentally sound exploration, development and production of petroleum reserves in harsh environments. Kongsberg is one of the Norwegian companies that have been successful in Malaysia showing their capabilities. Celebrating its 200 year anniversary this year, Kongsberg is today an international corporation with 7,300 employees and an annual revenue of USD 2.6 billion. 75 percent of the company’s revenue comes from outside Norway, with more than 30 percent of this annual revenue being derived from the oil and gas industry.

Kongsberg Oil & Gas Technologies was spun off as a separate business area in 2009. The company grew out of the success of Kongsberg Maritime, currently Kongsberg’s largest business area. Communities from the maritime division who had worked with simulation technology in oil and gas were reorganized under new management. Within a few years, Kongsberg Oil & Gas Technologies expanded to include hardware solutions on the seabed, and software solutions for the drilling of wells and decision support. Today the division provides innovative solutions for drilling, production assurance and subsea environment. The solutions integrate hardware, software and services for enhanced oil recovery, operational efficiency and safety.

After Kongsberg Oil & Gas Technologies signed several large contracts in Asia Pacific, including a five-year deal with Petronas for its drilling activities, the Norwegian company decided to increase its presence in the region and augment the regional head office in Australia with its second and largest regional office for Asia Pacific in Kuala Lumpur, Malaysia. “Why Malaysia? Because it delivers the right environment for the oil and gas industry,” says Havard Odden, regional manager Southeast Asia at Kongsberg Oil & Gas Technologies. “Malaysia is the second largest oil and gas producer in Southeast Asia and every oil and gas player is eyeing Petronas. At Kongsberg, we pride ourselves on effective and close cooperation with our customers and have therefore chosen to establish ourselves in Kuala Lumpur. In addition, Malaysia has implemented attractive incentives and operational costs are much lower compared to Singapore,” he adds.

Odden arrived at the helm of the region’s operations in January 2014 with the objective of developing the business for Kongsberg Oil & Gas Technologies. “This year the strategic focus has been on expanding our services portfolio with an emphasis on software solutions. Kongsberg Oil & Gas Technologies has quickly built up a solid portfolio of software-based decision support systems and has been successful winning contracts with majors including Statoil, Pertamina and Petronas.” The company also aims to expand its portfolio of services regionally with a move into the subsea business. Overall, with Asia set to account for a substantial portion of Kongsberg, Kongsberg Oil & Gas Technologies in the region is set to register 30 to 50 percent growth annually.

The contract signed with Petronas calls for Kongsberg to equip Petronas with the SiteCom® real-time operations support solution, which will provide 24/7 monitoring and support services to the Petronas twin towers. The system will allow Petronas drilling teams to access real-time data and to use the tools to decrease operational risk, improve well construction and placement and to increase long-term productivity – hence, improving the economies of its projects.

Article by Martijn Jimmink 

To read more articles and interviews from Malaysia, and to download the latest free report on the country, click here.



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