Prosafe NOW 2/2007



Prosafe NOW 2/2007
ProsafeNow 2-07
Side 1
No 2 • 2007
ProsafeNow 2-07
Side 2
for future
Prosafe shall be a leading and
innovative provider of technology
and services in selected niches of
the global oil and gas industry.
By providing our clients with innovative
and cost-efficient solutions, Prosafe shall
maximise shareholder value and create a
challenging and motivating workplace.
Prosafe NOW is published two to three
times a year for our employees, clients,
vendors and other key audiences.
Submit ideas, comments and
articles for the next issue to:
Karine Cosemans
communications and branding manager
[email protected]
Karine Cosemans
Photo page 1: Bitmap
Photo page 9, 10, 11:
Kjetil Alsvik/Elisabeth Oltedal
Printers AS
Prosafe SE
Stadiou Street 126
CY-6020 Larnaca, Cyprus
Phone: +357 2462 2450
Fax +357 2462 2480
[email protected]
The year 2007 has been yet another
successful year. With a steady
performance and solid order intake,
we are on track to meet our targets
and commitments to our stakeholders.
The result for the third quarter of
2007 was Prosafe’s best-ever. Our two
business divisions, Offshore Support
Services and Floating Production,
delivered excellent results. We have
distributed a special dividend of
NOK 3.75, in addition to the earlier
distributed ordinary dividend of
NOK 1.25 for fiscal 2006.
This achievement is the result
of good markets, quality assets,
demanding clients and last, but
not least, great efforts of all our
In spite of general good operational
performance, we had an oil spill on
the FPSO Umuroa in New Zealand.
This oil spill resulted in approximately
six cubic metres of oil contaminated
sand along a section of the Taranaki
coast. The sand has been cleaned
up, and fortunately there has not
been done any permanent damage.
The incident has been thoroughly
investigated, and we have taken the
necessary measures to guard against
any repeat. I would like to remind all
co-workers of Prosafe’s objective to
conduct its business with no adverse
environmental impact. It is of the
greatest importance that we at all
times show HSE responsibility,
commitment and accountability.
“Innovation” is one of our core
values, and I am proud to say that
we this year have had several major
break-throughs for our proprietary
cost-effective technological solutions.
Floating Production is currently
converting a Floating Drilling,
Production, Storage and Offloading
system (FDPSO). We will operate the
FDPSO on a 7 + 8 year contract for
Murphy Oil at the deepwater Azurite
field in the D.R. Congo. In addition,
the business division is converting an
FPSO on which we will install our
first-ever in-house developed
disconnectable turret. This FPSO will
be on a 7 + 8 year contract for
Apache’s Van Gogh field offshore
Floating Production’s long-term
research and development efforts
were also recognised by the Maritime
and Port Authority of Singapore who
awarded them this year’s Outstanding
Maritime R&D and Technology
Award. This annual international
award is given to a company for
outstanding innovation in the
application or research and development for the maritime industry.
Offshore Support Services has also
this year demonstrated a very high
level of rig utilisation. The business
ProsafeNow 2-07
Side 3
division secured several important
new contracts and contract extensions
against profitable dayrates.
The market for our accommodation/
service rigs will remain good in the
time to come, both in the North Sea
and internationally. We are confident
that our strong market position, solid
track record and versatile rig fleet of
dynamically-positioned and moored
rigs provide an attractive basis for
winning future contracts.
Since our founding in 1997, we have
gradually grown the company and
fortified our positions within the
market segments we focus on. Reidar
Lund, who has been chairman of
Prosafe for many years, looks in an
article in this magazine back on the
last decade of Prosafe’s history and
shares some of his wisdom with us.
Today’s Prosafe ranks as the world’s
leading owner and operator of semisubmersible accommodation/service
rigs, and as a leading owner and
operator of floating production
and storage units. The company is
represented in the world’s largest
offshore oil and gas provinces.
Both business divisions are financially
strong, have capable organisations, a
global presence and solid contract
portfolio. The market outlook for
both business segments is bright and
demand looks very firm. In order to
facilitate for the best possible further
development and growth for each of
the business divisions, the board of
directors has decided that it will be
beneficial to split the company in two
independent, listed companies.
Prosafe will be divided into one
focused Accommodation and Service
Rig company and one focused
Floating Production company. The
split process, including listing of the
two entities, is expected to be
completed during the second quarter
of 2008. After the split, there will be
two companies that are strongly
positioned to further cement their
leading positions.
Prosafe’s Ambassador Prize was six
years ago established to recognise the
efforts of a person who through the
previous year in an excellent way has
promoted one or several of Prosafe’s
core values. This year, I had the
pleasure of presenting it to Alice Ng
for having distinguished herself by
having in-depth knowledge and
being a good communicator and a
persuasive and convincing leader.
We have also this year given a
donation to SOS Children’s Villages,
rather than sending Season’s
Greetings cards to our business
relations. We have earmarked the
donation for the running of the SOS
Children’s Village in Igarassú in Brazil,
a village that we have supported
before and that we know well. We
believe that ensuring that children
are given a home, care and education
is the most valuable aid we can give.
Greetings of the season, and my
best wishes for a safe and happy
New Year!
Arne Austreid
President and CEO
Split into two companies
On 24 September, we released the news that the Board of Directors had decided
to commence a process of evaluating the possible effects of a split of Prosafe
into two focused, listed companies.
On 6 December 2007, the Board
of Directors concluded that both
companies, on an independent basis,
will have resources and financial
capacity to further develop and
grow in line with previously
communicated goals.
As a result of the evaluation, we
have initiated the process intending
to split the company into two listed
companies, one focused Accommodation and Service Rig company
and one focused Floating Production
The split process, including listing
of the two entities, is expected to
be completed during the second
quarter of 2008.
Arne Austreid will be the CEO of
the Accommodation and Service Rig
company, while Bjørn Henriksen will
assume the role as CEO of the
Floating Production company.
ProsafeNow 2-07
Side 4
Annual Safety Day 2007
Prosafe’s fifth Annual Safety Day was held on 16 October at the Raffles Hotel in
Singapore. About 170 representatives from oil companies, shipyards, suppliers
and Singaporean authorities, as well as Prosafe onshore and offshore managers
attended and contributed to this successful day.
By Karine Cosemans, communications
and branding manager
Ken Shepherd, director HSEQA in
Prosafe Production extended a warm
welcome to all attending the Safety
Day and announced that this year’s
topic was “human behaviour”. He
stated that the Safety Day’s purpose
was to share knowledge, to promote
health, safety and the environment,
and to try to make a difference.
–It is a powerful signal, that in
this room today we have so many
distinguished people willing to
use time to promote safe working.
That gesture in itself sends the clear
message that we all mean business,
said Ken Shepherd.
From a safety point of view, this is a
challenge. Statistics show that about
80 percent of all accidents are caused
by human behaviour, and not by
failing procedures or equipment.
Human behaviour – the main cause
of incidents
–Prosafe is a global company, with
operations in 15 countries and
employees from more than 30
nations, told Bjørn Henriksen, chief
operating officer. All these employees
have different personalities and
different cultural backgrounds.
–In order to improve safety, we have
to help each other. We expect safe
behaviour from all persons who are
part of our business. You must know
that there is management support for
any person who uses the Stop
Program. By stopping dangerous
actions, you will save lives, save
people from getting hurt and save
the company reputation, concluded
Bjørn Henriksen.
Don’t drop the glass ball
Roy Hallås, president of Floating
Production related that they currently
have seven vessels in operation, are
conducting three major conversion
projects and employ around 900 people.
–The business division has clear
ambitions to grow, and may in three
to five year’s time employ as many
as 2 000 persons, said Roy Hallås.
It is important that this growth is
sustainable and takes place in a controlled manner. It cannot be achieved
without taking safety seriously.
Arne Austreid, president and CEO of Prosafe talking with Stephen W. Balint,
floating systems engineering manager in Shell’s deepwater engineering
office in Malaysia.
Roy Hallås compared the responsibilities that we face at work and in life
with a complicated juggling act.
–We can think of our different
responsibilities as balls. We must try
to keep many balls in the air at the
same time, said Roy Hallås. Some
balls, representing work, budget and
time, are made of rubber and will
bounce back if we drop them on
occasion. Some of the balls that we
are juggling are made of glass. Safety
ProsafeNow 2-07
Side 5
From left: David Trimble and Peter Walsh from Prosafe talking with Gregoire Lavignolle, FDPSO Manager from Murphy Oil.
is such a glass ball. It will not bounce
back when it falls, it will shatter and
will be very difficult, if not
impossible, to mend. Therefore, we
must never loose safety out of sight.
There is no compromise on safety
Robin Laird, president of Offshore
Support Services, said that working
offshore means working in a
dangerous environment.
–We need vigilance in every minute
of our working day. There is no
compromise on safety. We have the
systems and procedures in place to
help us, but how we as individuals
interact and use the system, is equally
important, related Robin Laird.
He referred to the behaviour of meer
cats, which are always looking out for
each other.
–It is up to all to look out for one
another, say stop when necessary, and
assure that no one gets hurt. We
must look out, not only for ourselves,
but also for our colleagues at work,
and for others in life in general,
stated Robin Laird.
Human behaviour quiz
The next item on the agenda was a
quiz in which the participants’ knowledge about the human behaviour
was put to the test. The participants
answered table wise a list of 22
questions. Some of the queries led to
animated debates and round-the-
From left: Rob Mears (Prosafe), Andre du Plessis (ABS Consulting), and three
other Prosafe employees: Don Ranasinghe, Patrick O’ Rourke and Suharyadi.
table discussions, and many attendees
were surprised when hearing the
correct answers.
Update on last year’s Safety Day
Regina Wang, environmental
engineer, gave an update on what
has happened after last year’s Safety
Day which focused on “the
environment”. She informed about
the environmental management
plans that have been made for FPSO
Polvo and FPSO Umuroa, Prosafe’s
newest FPSOs that commenced
operations earlier this year.
She informed further that Prosafe is
doing an Envid (Environmental
identification) for the three current
conversion projects, based on our
scope of work once these vessels start
operations. They are preparing an
environmental management plan for
these vessels, and there has been a
review of the design to minimize
unnecessary emissions in the
operation phase.
Top-down message
–Behaviour turns systems and
procedures into reality, said Ian
Young, director of HSEQ in Offshore
Support Services. It is not enough to
have good systems in place, because
performance is determined by how
an organisation actually ‘acts out’
ProsafeNow 2-07
Side 6
their systems. We must establish a
safety culture that stresses that there
are certain ways in which we do
things in Prosafe. Behavioural safety
is not about changing an individual’s
attitude, it is about changing the
mindset of the organisation.
He advised further that culture and
behaviour are top-down messages.
–As managers and supervisors we
need to know how to behave and
what to do in order to motivate our
colleagues to behave safely. We must
communicate our commitment and
the priority that we attach to safety,
listen to feedback and take action
when and where required.
Incident pyramid
Lachlan Mckelvie, HSE manager in
Floating Production reported that
statistics show that as accidents get
less serious, employees are more and
more tempted to not report them.
–In order to further improve our HSE
results, we must get hold of all the
information and focus on “no blame
reporting”, emphasised Lachlan
Workshop and awards
The Safety day continued with a
workshop. Thereafter, the afternoon
was concluded by the presentation of
the Prosafe STOP Awards, the Safety
in Action Award and the Annual
Safety in Leadership Award to
employees and leaders who
throughout the previous year had
distinguished themselves by doing a
tremendous effort for improving the
company’s HSE results. Finally, Arne
Austreid, President and CEO of
Prosafe awarded the Ambassador
Prize (see separate article in this
The day was rounded off by a social
gathering and tasteful dinner at the
Raffles hotel, which was a good
opportunity for all to mingle with
colleagues and clients from all over
the world.
The zero mindset and safe behaviour
We regard the zero mindset both as
a goal to work towards and as a
way of thinking. We undertake to
do what we can in working actively
to avoid harming people’s life and
health, the natural environment and
material assets. But, how can we
achieve our goal of zero incidents
when slips and lapses are part of
human nature?
We build in robustness and fault
tolerance through different forms of
barriers. Traditionally, these barriers
have been technical or physical. We
implement extra safety valves,
additional brake systems or other
technical components that will become operative if there is a failure.
The thought behind this is very
simple: The likelihood of several
components failing at the same time
is smaller than the probability of one
single component failing. In
addition, non-physical barriers such
as rules and regulations, procedures
and job descriptions describe in
detail describe how critical work
situations must be conducted.
However, we know from experience
that most accidents and near-misses
are due to human error rather than
technical deficiencies. Although our
employees observe prevailing
legislation, statutory regulations
and procedures at all times, we
must acknowledge that hazardous
conditions can arise because
individuals make errors of
ensure that everyone in the crew
is aligned with what is about to
happen. Say ’STOP’ and request a
time-out if you feel unsafe - we have
time to do the job safely. Say ’STOP’
when you observe unsafe acts or
conditions, even though it might be
difficult to challenge a colleague or
a superior.
Collective responsibility
Systematic preventive HSE work is
a high-priority line management
responsibility. We expect all our
managers to lead the way by setting
a good example and facilitating
good working conditions. An active
and visible involve-ment by management is a key factor in achieving our
goal of operating without injuries
and accidents.
Should a conflict arise between
progress and safety, the latter must
always be the first priority. No safety
rules can be broken, and no short
cuts can be taken to complete a job
But, management cannot handle this
challenge alone. All employees have
a responsibility for performing their
work in a safe manner, taking a
proactive approach to reducing
risk, and reporting undesirable
conditions. All must contribute,
take care and look after each other.
Take two minutes to evaluate the
risks involved in your own tasks and
Zero mindset
The zero mindset involves a commitment to doing what we can to
reduce risk and to learn from things
which have gone wrong. When an
accident or near-miss occurs, playing
down the incident or concluding that
it was a misfortune is not permitted.
We follow up undesirable incidents
in a systematic manner, and continue
to build a culture which promotes
learning. Safety for people, the
environment and material assets
must be created and re-created
every day.
ProsafeNow 2-07
Side 7
Praise for Prosafe´s R&D work
Prosafe Production has been awarded this year’s Outstanding Maritime R&D
and Technology Award by the Maritime and Port Authority of Singapore. This
annual international award is given to a company for outstanding innovation
in the application or research and development for the maritime industry.
By Karine Cosemans, communications
and branding manager
Prosafe Production was awarded the
prize for its longstanding focus on
R&D, which has resulted in innovative
and cost-effective solutions. Prosafe
has some seven patents to its credit in
turret mooring systems, bearing
systems and the alignment of their
The International Maritime Awards
dinner in Singapore was attended by
more than 800 business and industry
representatives, and was graced by
Mr Raymond Lim, Minister for
Transport and Second Minister of
Foreign Affairs.
Prosafe’s R&D work is based in the
office in Singapore. The team working
with engineering innovation consists
of 30 persons, mostly engineers.
–This business is very competitive and
to stay ahead, you have to come up
with innovative, cost-effective and
challenging ideas because of the
magnitude of what you are trying to
develop, says Alan Hooper, R&D
technical director. To stay ahead, you
need to have a design that is flexible
and can be used in different areas
and ships in different sizes and
configurations of fields because each
oil field is different from the next.
We designed our first turret mooring
system in 1991. We have continued to
further develop this technology, and
have now a large portfolio of
external and internal single-point
mooring systems, with patented
bearings, components and swivels
allowing 360 degree weathervaning.
Prosafe has also developed generic
turret and swivel designs, which allow
major maintenance without shutdown. The generic turret is a modular
base design in which all components
are building blocks that can be scaled
up or down to meet project-specific
The latest achievement is the
development of a disconnectable
turret mooring system that allows
vessels to disconnect from the buoy
that is anchored to the seabed to sail
away when sea conditions turn bad.
This disconnectable turret is a key
feature of the FPSO that is being
converted for the Van Gogh field
operated by Apache Energy Ltd. The
field is located on the North West
Coast of Australia, an area that is
characterized by cyclonic activity
during the summer periods.
Our ability to combine our in-house
designed fluid swivels with our
patented turret mooring systems
enables us to significantly reduce the
traditional long lead time and high
costs associated with such systems.
The combination of long operational
experience and efficient proprietary
technical solutions ensures that we
deliver cost-efficient solutions,
tailored to the client’s specific field
development. Close cooperation with
the client and interaction between
the engineering and operations
departments contribute to continuous
improvement of design and
functionality and the highest level of
safe, efficient and reliable operations.
Historically high oil prices, the
industry’s move into deep water
Mr Raymond Lim, Minister for
Transport and Second Minister
of Foreign Affairs awards the
Outstanding Maritime R&D and
Technology Award to Alan Hooper,
R&D technical director of Prosafe
areas, the increased exploitation of
marginal fields and the growing
emphasis on fast-track developments
are the main factors contributing to
a very positive market outlook for
FPSOs. Prosafe has the clear intention
to take its part of this growing
market, and will seek to use innovation as one of the ways to do so.
ProsafeNow 2-07
Side 8
From humble beginnings
Prosafe Offshore’s technical department has started the work with its biggest
project so far – the possible refit of the Safe Caledonia.
By Clive Adshead,
director of
technical services
in Prosafe
The technical
provides onshore
technical support for 11 semisubmersible accommodation/ service
rigs and one jack-up service rig. In
2000 one technical superintendent
was the only employee.
As the number of vessels in the fleet
increased, the number of employees
has increased correspondingly. In 2007
the technical department became a
stand alone department providing full
technical support to the operations
department and the rig fleet.
We have a permanent staff of nine
persons based in Aberdeen: the
director of technical services, a
technical manager, a senior project
engineer, three project engineers,
one reliability centred maintenance
(RCM) support engineer, a technical
clerk and a CAD operator. This team is
enhanced by two contracted project
engineers and one project supervisor.
In Singapore there will be a fully
contracted project team of one
project manager, three project
engineers, one project planner, one
CAD operator and one project cost
controller – a far cry from the humble
beginnings of one technical
Possible Safe Caledonia refit in 2010
The department has now started the
work with the possible refit of the
Safe Caledonia, which would be the
biggest project undertaken so far.
We have contracted Babcock Design
and Technology (BD&T) to provide
design engineering and project
management services, reporting
directly to our offshore technical
department where one of the
permanent project engineers has
been allocated the role of liaising
with BD&T.
The main scope of the refit will be to
replace the containerised accommodation and associated services and
systems, the main deck cranes and the
Impressions of the “new” Safe Caledonia.
lifeboats. However, we will also take
the opportunity to improve stability
and conduct upgrade work to
enhance the operational life of the
vessel. The result of the investment
will be a Norsok standard accommodation vessel with a potential for a
further 20 years operations both in
the North Sea and world wide.
500 single man cabins
With continual involvement and
feedback from the vessel crew
and onshore support groups, the
accommodation design for the 500
single man cabins is now frozen.
Crane design requirements have been
identified and mechanical and electrical surveys on the vessel systems and
equipment have commenced. BD&T
have some 20 project personnel of
various disciplines working full and
part time on the project.
We have identified a number of
potential yards in Europe and a few
yards in the Middle and Far East that
are capable of and interested in
completing the refit. If we go
through with the refit, we will have
exciting and busy times ahead!
ProsafeNow 2-07
Side 9
Prosafe, a leader in the
international market
”We have been clever, and we have been lucky.” Reidar Lund, chairman of
Prosafe for many years, is in no doubt about the reason for the success of
the company in the international market of floating production and flotels.
Looking back on the last decade in the industry, he sees a company which has
been successful all over the world.
By Morten Helliesen, journalist
“Ten years ago we were dependent
on the North Sea. Then the long-term
perspective was that if we were to
grow, it had to be elsewhere than
in our home market at that time.
We had to use the knowledge and
experience from our own growth,
which we did by buying Nortrans in
Singapore. That company was
involved in floating production,
and through this acquisition a signal
was given both to our employees
and owners that we were now
going international. In this way
we have managed to become a
world leader in our niche business,
floating production and flotels,”
says Reidar Lund.
We meet him home in Stavanger on a
nice autumn day in September. He is
in the company’s offices in the centre
of town. In a few days he is leaving
for Larnaca on Cyprus, where the
head office is now located. It’s time
for a board meeting and new strategic discussions about the company’s
development and future. Just like
Prosafe’s management, Reidar Lund is
open to new growth opportunities.
What is your most important task as
“That is to safeguard the interests of
the owners, employees and the
company as a whole. When it comes
to the owners, it is important to give
everyone equal and correct treatment.
Today’s companies have clear guiding
principles for their operations,
amongst others through corporate
governance. These are rules governing
a company and its board so that all
aspects are properly attended to. So
all in all the directors have done a lot
of positive work in recent years,”
states Reidar Lund, who was voted
Chairman of the Year in Norway only
a few years ago.
Efficient operations, high earnings
The Prosafe of today has its head
office in Cyprus, while operations are
managed from Singapore and
Aberdeen. These locations provide the
company with optimum competitive
conditions internationally, according
to Reidar Lund. There is also an office
in Stavanger, which is, among other
things, responsible for the insurance
side of rigs and vessels, and the
relationship with the company’s
Norwegian banks. Prosafe is also
listed on the Oslo Stock Exchange.
Despite a turnover in billions of NOK
the organisation is small and
efficient. The philosophy has always
been to run the company cost
effectively. If your profits are high, it’s
easy to become extravagant. The
expenses can then absorb the profit,
according to chairman Lund.
Was it difficult to move the head
office from Norway to Cyprus?
Reidar Lund, chairman of Prosafe.
“A move like that has both practical
and technical aspects. For me there
has also been an emotional side to it.
If our framework conditions had been
comparable to our competitors, we
probably would have remained in
Norway. But in view of the conditions
currently prevailing, it was out of the
question,” he points out.
ProsafeNow 2-07
Side 10
The interview with Reidar Lund
was conducted in September. On
6 December, Prosafe announced
that is has decided to split the
company into two listed
companies, one focused
Accommodation and Service
Rig company and one focused
Floating Production company.
Reidar Lund comments this as
“We want to ensure the best
possible growth possibilities for
each of our business divisions,
and believe that the best way to
achieve this is by splitting the
company into two independent,
financially strong companies. Both
companies will be listed on the
Oslo Stock Exchange. I look forward to following their development in the years to come.”
ProsafeNow 2-07
Side 11
The market for Prosafe’s services is
also international. And in recent years
the company has become a truly
international workforce.
“All cultures - a wonderful fellowship.
I think it’s fantastic to be part of such
an environment. But still we want to
be local where we operate. It is
important to have an open and
embracing attitude, and let the
different cultures blossom,” stresses
Reidar Lund.
Health, safety and environment –
how do you manage to keep that
focus in an international company?
“HSE is always a top priority. And if
there is a single international message
across all cultures within our company,
it is the concern for safety. In addition
we are very concerned with the
ethical aspect, that everything is done
in the correct way and according to
the book. Both of these issues are well
taken care of, not least because our
customers are the large, international
oil companies, where HSE is very much
on the agenda. This helps us to keep a
clear and strong focus.
A competent workforce
What are Prosafe’s current challenges?
“Of course there are many challenges.
If I were to name one, it would be
that it is important for us to maintain
the position we have at present
within offshore support. This also
involves a certain modernisation of
the fleet. As to floating production,
this market is characterised by lots
of smaller players. This allows for
consolidation, for instance through
acquisitions,” states Reidar Lund, who
also mentions competence as one of
the biggest challenges currently
facing the company.
this means that companies must
continuously increase their competence. This is a challenge at a time
when we have to recruit people, who
perhaps haven’t worked in the rig
business before. Everyone needs to
recruit. And when you have first
employed someone you need to hold
on to them. Salary is only one aspect
in this process. An interesting job and
a good working environment are also
important. That is why we put a lot
of effort into giving our workforce
development opportunities.”
Your mention all time high oil prices
and record demand within all sectors.
That hasn’t always been the situation
in the industry. What is different
today compared with when the oil
price was $20 a barrel?
“Certainly the industry has experienced downturns. The most difficult
was probably in the mid-1980s.
All over rigs were laid up for long
periods of time. Ships were sold
for next to nothing. The generation
investing in the oil service business
today, which doesn’t have this
historical experience, does not
know how bad things can be.
Without wanting to stress it too
much, I think the lessons learnt from
that time are valuable, particularly
in the current market where
everything points upwards.
“One thing that is vital now is to
have a competent workforce at all
levels. The market is booming and the
oil price is at an all time high, which
means very high activity. The oil
companies for their part have the
financial muscle and ability to start
major projects, both concerning rigs
and supply vessels. Exploration must
increase if we are to maintain oil
production in a world where more
and more people want energy. All of
Full focus on Prosafe
Where is Prosafe in 10 years?
“We still have a clear strategy for
growth, which means that we don’t
rule out acquisitions or facilitating for
growth in other ways. If we are to be
able to grow further, if is important
to maintain good and stable earnings.”
Reidar Lund has for many years sat on
several boards, but has now scaled
down. This means that he is concentrating fully on his chairmanship
function in Prosafe. He will be 66 this
autumn. Good health, physical activity
and exercise keep him in good shape.
When not working he likes to play
golf. And he sails. According to him
golf and the sea are his favourites.
But of course best of all is his family.
Nothing compares to assembling
everyone at home in Tananger, just
outside Stavanger.
“I have experienced a lot and have
had an incredibly exciting life, not
least thanks to all the challenges in
Prosafe. What we have achieved
together has been a result of hard
work. My wife has also been a good
support for the family and myself.
It is therefore quite natural for me
to say: What I have achieved has
been achieved by us together, my
wife and I,” concludes Reidar Lund.
ProsafeNow 2-07
Side 12
Strong safety results
On 21 November 2007, the Azurite FDPSO project team reached the milestone of
having worked one million man-hours without having experienced any Lost Time
Incident (LTI). On 30 November 2007, the FPSO Ningaloo Vision project team hit
1 099 246 manhours LTI free.
experience from being an apprentice
in a shipyard many years ago with the
–At that time injuries happened daily.
The goal of zero accidents seemed
totally unrealistic, but we have yet
again proved that it is possible to
work free of injuries.
Prosafe’s project manager, Colin
Crewe, and Murphy’s Gregoire
Lavignolle were equally proud of this
important milestone being achieved.
They both agreed that teamwork
around this common goal of all
parties involved is now paying off.
The proud Azurite project team, inclusive management representatives from
Murphy Oil, Prosafe Production, Keppel Shipyard and a number of subcontractors.
The Azurite FDPSO project team
celebrated the achievement on 8
December at the Keppel Benoi yard in
Singapore with management representatives from Murphy Oil, Prosafe
Production, Keppel Shipyard and a
number of subcontractors present.
Abu Bakar, general manager operations
of Keppel Shipyard thanked all
parties involved for the efforts in
making the repair and life extension
and the conversion work a success.
–Safety and productivity go hand in
hand, he reminded his audience.
Speeches were also made by a
number of other senior managers.
Roy Hallås, president of Floating
Production, further underlined Abu
Bakar’s reminder.
–In addition to all the pain and
sorrow that individuals, colleagues
and relatives involved will suffer,
injuries and other unwanted incidents
such as for example fires can have a
detrimental effect on a project’s
delivery schedule, he said.
He also conveyed the congratulations
from Prosafe’s corporate management.
Arne Austreid, president and CEO of
Prosafe had sent the following message:
–Congratulations to the FDPSO
Azurite project team and also to the
Keppel shipyard. The achievement of
working one million man-hours
without LTI proves that even in the
most challenging working situations
all accidents can be prevented. Safety
is a core value in Prosafe, and the
company has maintained a positive
trend over many years. We are not
resting content with these results, but
will continue to work determined to
bring the number of accidents down
to zero on all our installations.
Ken Shepherd, HSEQ Director of
Prosafe Production, shared his own
We are proud to announce that also
another conversion project, the conversion of the FPSO Ningaloo Vision,
recently achieved a similar milestone.
At the end of November, they had
worked 1 099 246 manhours without
LTI in the Keppel Shipyard Subic in
the Philippines. Congratulations with
this achievement, and keep up the
good work!
From left: Hans Kristiansen (director
of projects in Prosafe Production),
Faizul Haque (Azurite’s construction
manager), Roy Hallas (president
Prosafe Production) and Anthony Hill
(Azurite’s engineering manager)
inspecting the vessel in the yard.
ProsafeNow 2-07
Side 13
A true Ambassador for Prosafe
Prosafe’s Ambassador Prize has been awarded for the sixth time. Alice Ng’s total
commitment to Prosafe and the company’s core values earned her the title of
Prosafe Ambassador.
By Karine Cosemans, communications
and branding manager
At the annual Safety Day, Alice Ng,
financial controller in Floating
Production was presented the highly
valued Prosafe Ambassador Prize by
Arne Austreid, president and CEO of
–The core values on which our
activities are based are universal: the
environment, focus, ambition, safety,
innovation, respect and profitability,
said Arne Austreid. They guide the
conduct of our overall business and the
behaviour of each employee at all
times. We established the Ambassador
Prize six years ago in order to enhance
our employees’ focus on and commitment to these core values. By awarding
the prize, we acknowledge the efforts
of those who distinguish themselves by
promoting one or several of our core
values in and excellent way.
Arne Austreid emphasised that
Prosafe’s core values must be at the
basis of everything that is being done
in Prosafe.
This year’s winning proposal was
submitted by WanKhum Lee, director
of finance in Floating Production. She
wrote the following:
“I would like to nominate Alice Ng for
the Prosafe Ambassador Prize this year.
Below is the justification for the
To be able to qualify for a good
Ambassador, I believe one should
possess the quality of towering
personality, in-depth knowledge, be a
good communicator, a persuasive and
convincing leader and a patriot. Alice
Ng has been with the company since
its formation, diligently working her
way to her current position of the
financial controller of the Floating
Production division.
Besides having all the qualities as
mentioned above, Alice has been a
pillar of strength to her team, calling
beyond her duties and getting involved
in various aspects of the company for a
common goal of bringing the company
forward. With the tremendous
expansion of the Floating Production
division, Alice has demonstrated her
commitment and ability in consolidating her team, accomplishing projects
and assisting all the other departments
when help is needed.
She once told me she felt that she is
running a Welfare and Consultancy
Agency as many people always go to
her for advices both on work and
personnel problems. She is kind and
understanding and always with a good
listening ear. I’m not at all surprised
that she is so popular among her
I strongly recommend that this quality
and effort be recognized and am very
glad to nominate her for the
Ambassador Prize this year.”
Arne Austreid presented Alice Ng with
the sculpture of the pilot and a gift
voucher. The pilot symbolises a person
who guides others through unknown
waters and into a safe harbour.
A very happy Alice said the following
when being asked what she felt about
being awarded the Ambassador Prize:
–I was immensely caught off-guarded
by the announcement that I had been
selected to be recognized for my role
and contribution in Prosafe. It gave me
a tremendous sense of deep sincere
appreciation and recognition by
From left: WanKhum Lee, Prosafe
Ambassador Alice Ng and Arne
management. The ambassador award
has an important underlying
significance on Prosafe’s core values
and as an achiever I felt extremely
proud to receive it. This, I am sure will
encourage every employee in Prosafe
to look towards this annual event and
to always put their best foot forward.
The pilot is now proudly positioned in
my office and continuously reminds me
of its significance.
–Alice, thank you for being a true
Ambassador for Prosafe. I wish you all
the best and good luck in the future,
said Arne Austreid. At the same time, I
would like to take this opportunity to
remind all co-workers in Prosafe once
again that our success is determined by
the way we do things. Our core values
must be used as guiding tools. They
have helped us to come where we are
today, and they will guide us on the
way forward.
ProsafeNow 2-07
Side 14
Igarassú - a new reality
for 126 children
On 13 November 2007 the new SOS Children Village in the city of Igarassú, near
Recife in Brazil was finally inaugurated. Two proud employees from Prosafe’s office
in Brazil attended the official opening ceremony.
By Gilberto Carvalho, business
development manager in Prosafe
My colleague Elizabeth Teixeira,
human relations manager in Prosafe
Brazil and I were so lucky to be given
the chance to attend the opening
ceremony and learn more about what
SOS Children’s Villages does to give
children in need love, education and
a future.
I was amazed by the caring, kindness
and motivation of the program. This
is not like any other institution I have
come in contact with before – this is
creating love. The professional
mothers had each a personal memory
of the struggle and success. I do not
think there was one person that was
not personally touched by their love
and dedication.
The SOS Children's Village that we
visited in Igarassú comprises 14 family
houses and accommodates 126
children aged from 0 – 15 years. Each
house is organised like a family, with
nine children in different ages that
grow up as brothers and sisters and a
trained professional SOS mother who
is responsible for looking after the
children and organising the family’s
daily life. These mothers have during
two years taken courses in São Paulo
and have been given on the job
training at a working location, before
they were considered fit to take care
of their own loving family.
The concept of the 58 year old,
worldwide represented SOS Children’s
Villages is to offer a new home to
children who have lost their parents
or cannot live with them for various
reasons. Regardless of race, culture or
religion, they find a family in which
they are given the love and security
that every child needs for sound
development. All efforts are made to
re-integrate them back into their
natural families. If this is not possible,
they can remain in the program until
adult life when they are able to stand
on their own feet.
Glauco, Eronido and Werberson, together with Elizabeth Teixeira, human
resources manager of Prosafe in Brazil posing in front of some of the houses.
Maurice Van Heemstede, president
of SOS Brazil told us that they place
special emphasis on giving the
children education and training as
a preparation for life on their own
afterwards. SOS Children’s Villages
cooperates with companies,
supermarkets and local vendors that
give these young people training as
a mechanic, baker, hairdresser, cook,
ProsafeNow 2-07
Side 15
General view of the SOS Children’s Village in Igarassú.
tailor etc. in parallel to going to
high school. If the youngsters do
a good job, they guarantee their
employment. This ensures that the
children will be able to take care of
themselves when they become adults
and can contribute with their
competence to the local community.
The families that will live in the
Children’s Village in Igarassú are
currently living in rental houses nearby.
In the next month they will move and
begin a new, safe life. The children will
go to school and will have the same
medical and social interaction as any
other child in the city.
The SOS Children's Village also
includes an SOS Social Centre, which
is run as a day-care centre and offers
medical and dental assistance, and a
small pharmacy as well as class rooms
for counselling and training of adults
and children. The SOS Social Centre
caters to needy people from the
neighbourhood. There are good
public transport links and many
supermarkets, bakeries, pharmacies,
banks, enterprises, schools and health
centres nearby to meet the needs of
the SOS Children's Village community.
The project in Igarassú is mainly
financed by money that was raised
during the 2006 FIFA World Cup in
Germany and by the profits of a
documentary film about the German
Team World Cup. The other major
From left: Walter Cadima, president of SOS Latin America,
Gilberto Carvalho, business development manager in Prosafe
Production and Maurice Van Heemstede, president of SOS Brazil.
sponsor is Prosafe. Both will have
commemorative plates in the
complex’s administration building
since the homes cannot have any
advertisement – after all they are
family homes.
Igarassú´s SOS Children’s Village is the
15th unit in Brazil. To upkeep these
wonderful programs, SOS Children’s
Villages relies more on individual
donations than point contribution
from corporations. I plan to donate
to the program myself and will invite
anyone to do the same. If you wish
to upkeep the work that Prosafe
has begun, please visit for more
SOS Children's Villages is an
independent, non-governmental
and social development organisation, which has been active in the
field of children's needs, concerns
and rights since 1949. Its activities
focus on neglected and abandoned
children and orphans, as well as
disadvantaged families.
If a child cannot stay with his/her
biological family, his/her right to
care, protection and equal
opportunities should still be
guaranteed. This is the basic
principle according to which SOS
Children's Villages carries out its
The commemorative plate that will be
placed in the village’s administration
activities in 132 countries and
territories. SOS Children's Villages
makes it possible for children to be
part of a family once again by
providing family-based care.
SOS Children’s Villages has more
than 1 800 projects in 132 countries.
More than 65 000 children and
youths have their home in a
children’s house and about 140 000
children go to SOS kindergartens,
schools and training centres.
About 1.3 million children and
their families receive assistance
through SOS Children’s Villages’
ProsafeNow 2-07
Side 16
A brand new concept – the FDPSO
The development of an FPSO with a compact drilling rig brings new challenges for Prosafe.
By Colin Crewe, project manager
Murphy West Africa Ltd is developing
its Azurite oil discovery in offshore
Republic of Congo to produce up to
40 000 barrels of crude oil per day.
The Azurite oilfield is located in the
Mer Profunde Sud block in approximately 1 400m water depth.
As part of the development, Murphy
has contracted to charter from Prosafe
an FPSO which will be fitted with a
compact drilling rig supplied by
Murphy. The vessel will be a new
development and has been designated
as a Floating, Drilling, Production and
Offloading vessel, FDPSO.
During the first two years the FDPSO
will drill up to six production wells and
four water injection wells. Once the
initial wells have been drilled and the
production of oil has started, the
FDPSO vessel will continue to drill
additional wells as well as produce
crude oil and offload the oil into
shuttle tankers. The mooring system
will be a “dynamic” 12 line system
which will allow the vessel to be moved
from well to well as required to drill
each new well. After approximately
two years the drilling equipment will
be disassembled and removed from
the vessel and the vessel will continue
to operate as a normal FPSO for the
life of the Azurite field.
The vessel selected by Prosafe for
conversion to the FDPSO is the MT
Europe, a VLCC trading tanker built in
1988 by Hyundai Heavy Industries in
South Korea. The vessel is now in the
Keppel Benoi shipyard in Singapore
undergoing repair and life extension
work and work to convert it into an
FDPSO. The topsides modules are
being fabricated in a yard in
Malaysia. In the second quarter of
2008, the completed modules will
be transported from Malaysia to
the shipyard for installation on
the vessel and final hook-up
and commissioning. The drilling
equipment modules will be supplied
by Murphy and integrated on to the
vessel during the third quarter of
2008. The vessel will sail to the Congo
in the fourth quarter of 2008 and be
installed, ready for drilling early 2009.
The length of the overall project
schedule is longer than that for a
normal FPSO due to the complexity
of the vessel and the project team is
operating to a very tight schedule.
All personnel involved are focused on
supporting the schedule and achieving
the “Ready for Drilling Date”.
The complexity of the vessel is
increased significantly by the addition
of the drilling rig as it occupies
approximately 35% of the available
deck space. The drilling rig is installed
in the middle of the vessel and the
drilling is carried out through the
“moonpool” constructed through a
void tank. In addition to the physical
attributes of this interface, the presence
of drilling operations on the FPSO
results in the need to have aligned
systems and procedures to ensure
personnel safety and vessel integrity is
maintained at all times. This is something which requires some “out-of-thebox” thinking from Prosafe’s Engineering and Operations teams who are
typically used to normal FPSO working
practices but are working closely with
Murphy to achieve these goals.
The MT Europe, a VLCC trading tanker, is being
converted to an FDPSO in the Keppel Benoi
shipyard in Singapore.
3D FDPSO model view.
ProsafeNow 2-07
Side 17
Project update
– FPSO Cidade de Sao Mateus
Prosafe achieved an important company milestone when it was awarded a
contract for its first Gas FPSO by Petrobras in December 2006.
MT Navarin is being converted to Prosafe’s first gas FPSO, the FPSO Cidade de Sao Mateus, at the Keppel Tuas shipyard.
By Robert Mountjoy, project manager
For this contract, Prosafe converts a
VLCC sized vessel to an FPSO that will
be named Cidade de Sao Mateus
FPSO (CdSM). Prosafe is responsible
for the engineering, procurement,
construction, installation, commissioning and operation of the FPSO.
The Cidade de Sao Mateus (CdSM)
FPSO will be installed offshore Brazil
and operated by Prosafe on 9 + 6
year contract. Gas production,
compression on the FPSO and
exporting to shore by subsea pipeline
will fill an important part of Brazil’s
expansion of its domestic gas supply.
First gas export is scheduled for around
year end 2008.
To achieve the first gas target, the
facility will depart Singapore in
August 2008 and sail under its own
power to Brazil. Now halfway
through the project schedule, the
many project challenges are being
effectively handled by the Prosafe inhouse team and with solid
performance from our subcontractors,
the project remains on schedule.
Fabrication of the facility is progressing with process modules being built
in six yards in the Singapore region
and with the ship undergoing
refurbishment and conversion works
in the Keppel Tuas shipyard. Project
management, engineering and
procurement are all being performed
in Singapore by Prosafe.
Of particular interest on the CdSM
project is the unusually large process
topsides, which at approximately
15 000 tonnes, makes it a very large
and complex FPSO. Three 15 MW gas
turbine powered export compressors
will export 350 mmscf of natural gas
per day. The FPSO also has a full suite
of the normal FPSO production
capabilities. A spread mooring will
hold the facility on station in 800 m
water depth for 15 years.
ProsafeNow 2-07
Side 18
Management appointments
Anita Henry
Anita Henry (born 1961) was
appointed head legal counsel of
Floating Production in November
2007. She joined Prosafe in June
2005 as legal advisor in the
Contracts & Risks Assessment
Department. She has 23 years
post qualification experience
and prior to joining Prosafe,
held various positions including
that of regional legal manager in Rockwater Offshore
Contractors, Brown & Root Far East Engineers and
Kellogg Brown & Root Asia Pacific, as well as practiced
in two prominent Singapore law firms.
Bernard Cruz
Bernard Cruz (born 1957) has
been hired as senior manager
human resources of Floating
Production. Mr. Cruz is a
graduate in business and has a
masters in human resources
management. He has nearly 15
years of experience in the Asia
Pacific region from various
multinationals like Otis Elevator
and Holcim where he held senior HR positions
covering the Asia Pacific regions, the last being
human relations director of a the global IT solutions
company LogicaCMG.
Helge Ystheim
Helge Ystheim (born 1954)
was appointed as director of
bids & commercial of Floating
Production in October 2007.
He comes from the position
as interim president of KCA
Deutag Norge AS. Mr. Ystheim
has over 25 years of experience
within the offshore business
and has held the positions of
VP drilling, VP finance and VP contract and
procurement in Prosafe’s earlier owned subsidiary
Prosafe Drilling Services.
Hans Kristiansen
Hans Kristiansen (born 1947)
has been hired as director of
projects of Floating Production
with the overall responsibility
for planning and execution of
projects. Mr. Kristiansen is a
graduate engineer from the
Gøteborg Technical Institute.
He comes to Prosafe from
Statoil where he has had
various senior management positions during the last
22 years, the latest one being VP and project manager
for the Tordis IOR project.
Gilberto Carvalho
Antonio Gilberto Carvalho
(born 1948) was appointed as
business development manager
– Americas in
July 2007. He has nearly
15 years of experience with
business development in all
sectors of the energy field, and
was previously employed as
business development and
country manager of Conoco in Brazil, business
development director for Southern Electric and
senior consultant in New England Electric.
Bjørn Ødegård
Bjørn Ødegård (born 1957)
was appointed President of
Prosafe AS in Norway in
August 2007. He will head
the Stavanger office, which
has a support function to the
Prosafe group. He comes from
the position of CFO of the
regional hospital in Stavanger.
Previous to this Mr. Ødegård
worked 23 years in the oil service industry in various
managerial positions for amongst others Aker
Drilling, Transocean and MI Swaco.
ProsafeNow 2-07
Side 19
Jimmy Low
Jimmy Low (born 1957) was appointed as
director of finance in Offshore Support
Services in September 2007. Mr. Low is a
Fellow of the Association of Chartered
Certified Accountants (FCCA), and has
since 1978 has a number of positions in
accounting and management within
financial services, banking, retail and
manufacturing industry sectors. He comes
to Prosafe from the Michelin Group were
he has had a number of roles, latest as
vice president and chief fnancial officer
for the Asia-Pacific region.
Offshore Support Services
– commercial update
Prosafe Offshore has never been in such a strong commercial position. Owning 12
units worldwide and a healthy contract portfolio creates a good feeling going
forward. Positive praise from clients worldwide leads to renewed and refreshed
contracts, and operating ‘firsts’ demonstrates the capabilities within the organisation.
By Ryan
director of
and risk
Over the past
year I have
sat in many
negotiations communicating our
work ethic, core values and proud
achievements. It is only when I sit
back and reflect on, as an example
the MSV Regalia’s astonishing gangway connection record at Girassol, or
the complex mooring operations with
the Safe Scandinavia does it sink in
that we as a company have pushed
the boundaries and diversified into
a truly global company. Operations in
Russia, Singapore, Africa, UK, Norway
and US Gulf lead to the fleet being
spread over many time zones and
cultures; all have to be carefully
coordinated and conducted to ensure
all our employees and guests return
home safely.
As has been reported recently,
Prosafe Offshore has secured
a contract for the Safe Astoria.
Operating offshore Sakhalin Island
for two distinct periods, the first
commencing May 2008 and second
in May 2009, the Safe Astoria must
undergo various winterisation
modifications for the harsh environmental conditions prevalent in the
area. This is an exciting project with
many challenges but with the
experience gained with the Safe
Bristolia in the region Prosafe
Offshore is well placed to succeed.
The MSV Regalia and Safe Bristolia
begin 2008 with new contracts in
the North Sea with Aker Kværner
Offshore Partners and ConocoPhillips
respectively. The Safe Concordia
has secured a revised contract with
Chevron in the US Gulf from August
onwards and the Safe Scandinavia
returns to the Norwegian Continental Shelf with Statoil. Busy times
Going forward we are tendering
for various contracts and marketing
globally to endorse our brand. Well
placed and respected in the industry
we are confident that the success we
have achieved can be maintained.
ProsafeNow 2-07
Side 20
Prosafe SE
Stadiou Street 126
CY-6020 Larnaca
Rather than sending traditional Season’s Greetings
cards, we have decided to give a donation to
SOS Children’s Villages.
© istockphoto
We wish you Happy Holidays

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