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THE NEWSLETTER FROM SUBSEA UK                             WWW.SUBSEAUK.COM                                 JUNE 2008




Try Not to Lose Your Head
Advises Ian McIntosh, Managing Director Strategic Offshore

The subsea market has been
through a period of overheating it
                                         reaction has then been to turn back
                                         time going right back to first           Inaugural Event
has seldom seen before. That’s made      principles and fixing long-term to
the whole subsea industry both           make sure they have vessels              Focuses on
centre stage and under pressure          available to them, especially so on
like it has never been before. Any       the DSV side.                            Europe and Africa
market being put under that amount         Yet, the good times will not last
of pressure, produces multiple           indefinitely. A correction will come.    London to Attract Key
reactions. Now the issue is to try       The market is currently ignoring its
not to panic, or at least try not to     main market driver – small diameter      Players from Overseas
panic too much. Remember, keeping        pipelay – and has been staggering on
a cool head isn’t always easy.           at a high level while the mother and
                                         father of all hangovers is brewing.
Like a grinning naughty schoolboy,       Demand ignoring its real master is
2006 has a lot to answer for. Thanks     not good news. Big increases in
to a sold out North Sea and masses       vessel supply are also on the way, and
of hurricane remedial in the Gulf of     while they might not be felt in 2008,
Mexico it superheated the subsea         they will be seen some in 2009, and
market until the thermostat was          then much more so after that.
utterly frazzled.                          The other thing that high rates
  And the repair man still hadn’t        and decent contractor profits have
called in 2007 either. The heat of       done is just attract more
2006 caused so many clients to           competition. Like so often before, it
throw themselves into long-term          is the level of competition in the
contracts that the market was just       market that has the final say on
as hot. Plus the hurricane remedial      where rates go. Right now, most of
work in the Gulf is only now beginning   that new competition is stocking up
to slacken off after underwriting                           their armouries
some of the upswing in demand.                                 getting ready to
Factor in continued deepwater                                           really
overruns and you have a market that
looks like it should only be handled
with asbestos gloves.
  Over the last 25
years whenever rates
have gone up
markedly in the
subsea market, the                                                                The UK’s capital city is set to host
end clients have moved                                                            Subsea UK’s first conference and
the goalposts. Not so                                                             exhibition of its kind: Subsea Europe.
this time. For the moment,                                                        The event aims to attract key
some operators have felt                                              Continued   decision makers from operators and
hemmed into a corner. The                                             on page 3                         Continued on page 3
                                                       2 SUBSEA UK NEWS JUNE 2008                                                                                                                                                                3 SUBSEA UK NEWS JUNE 2008

                                                       SUBSEA UK NEWS                                                                                                                                                                       SUBSEA UK NEWS

Tel: +44 (0)1224 355355
E-mail: admin@subseauk.com
www.subseauk.com


Member List
                                                                                                                                                             Universities Collaborate to Create
                                                                                                                                                             the Subsea Research Institute
                                                                                                                                                             A Centre of Excellence Revealed
                                                                                                                                                                                                                                                               2008
                                                                                                                                                                                                                                                    Forthcoming Events

                                                                                                                                                                                                                                                    PARLIAMENTARY RECEPTION
                                                                                                                                                                                                                                                    The Terrace Pavilion, House of
Abalt Solutions Ltd, Acergy, Acteon Group Ltd, AE                                                                                                            The Subsea UK Business Awards                Millions of pounds are to be              Commons, London
Precision Ltd, AFL Telecommunications, AGR                                                                                                                   celebrated another announcement                                 ,
                                                                                                                                                                                                        invested in the NRP which is a joint        3rd June
Subsea Ltd, AKD Engineering, AKE Ltd, Aker
Kvaerner Subsea Ltd, Andrew Palmer &                                                                                                                         with the news that a subsea                venture involving Aberdeen, Dundee
Associates, Ansys Europe Ltd, ASCO UK Ltd,                                                                                                                   research institute is to be created        and the Robert Gordon Universities.         SUBSEA ASIA
Atkins Boreas Consultants Ltd, Aubin Ltd, B & A                                                                                                              in Aberdeen.                                 The Subsea Research Institute is          Kuala Lumpur
Hydraulics Ltd, Balmoral Offshore Engineering,                                                                                                                               ,
                                                                                                                                                                In late 2007 Subsea UK, as part         expected to be based at Aberdeen
Baule UK Ltd, Bel Valves, BG Group, Bibby
                                                                                                                                                                                                                                                    11/13th June
Offshore Ltd, BJ Process and Pipeline Services,                                                                                                              of its 2020 vision, produced and           University where laboratory space
BMT Marine Projects Ltd, Bowtech Products Ltd,                                                                                                               distributed a glossy prospectus            for subsea research and                     SUBSEA OPPORTUNITIES,
BP, BPP Technical Services, Bredero Shaw,                                                                                                                    calling for a subsea Centre of             development will be created at their        CHALLENGES AND SERVICES
Brinker Technology, Buchan Technical Services
Ltd, C3 Amulet Ltd (Associate Member), Caley
                                                                                                                                                             Excellence here in the UK.                 main engineering building.                  Newcastle
Ocean Systems Ltd, Castrol Offshore Ltd, CD-                                                                                                                    In response to the prospectus,            Research interests and activities         19th June
Adapco, Champion Environmental Technologies,                                                                                                                 three of Scotland’s leading                which already exist in support of the
Chevron Upstream Europe, Coda Octopus Ltd,                                                                                                                   universities revealed that they wish       Subsea industry will be enhanced and        CAREERS AND LIFESTYLE EVENT
Cormon Ltd, Cranfield University, CSL, CTC Marine
Projects, Cutting Underwater Technologies Ltd,
                                                                                                                                                             to create a Subsea Research                expanded. Academics and                     Aberdeen AECC
Deep Ocean Subsea Control Innovations Ltd,                                                                                                                   Institute, as part of their overall        industrialists have warmly welcomed         26th June
DeepSea Engineering & Management, DES                                                                                                                        agreement to establish a Northern          the approach which should ensure
Operations Ltd, DNV, DOF Subsea UK, Dominion                                                                                                                 Research Partnership (NRP) in              that cutting edge, applied research         GOLF DAYS
Technology Gases, Douglas Westwood, Duco
Umbilicals, Dunlaw Engineering Ltd, Dynamic                                                                                                                  engineering and related disciplines.       is well informed by the needs and           Inchmarlo
Positioning Services (DPS), E.ON Ruhrgas North                                                                                                                                                          drivers of the industry itself.             5th and 12th September
Sea UK Ltd, East of England Energy Group, Edinfort                                                                                                                                                        The universities investment in
Ltd, eProduction Solutions, Expro Group,                                                                                                                                                                subsea technologies was made clear          BUSINESS BREAKFAST WITH
ExxonMobil, Ferguson Modular Ltd, First Subsea
Ltd, Fisher Offshore, Flexlife Ltd, FMC                                                                                                                                                                 late last year when both Robert             OIL AND GAS UK
Technologies, Framo Engineering UK Ltd, Fugro                                                                                                                                                           Gordon University and Aberdeen              Aberdeen
impROV, Fugro Rovtech Ltd, Furmanite                                                                                                                                                                    University announced their new MSc
International Ltd, Furness Enterprise Ltd, GE          Subsea Business Award Winners Francis Neil (left) of Brinker, Klaire Evans of Brinker, David Turner                                              courses in Subsea Engineering and           28th October
Measurement & Sensing Technologies, General                 ,
                                                       of BP and Graeme Coutts of Expro
Robotics Ltd, Global Marine Systems Ltd,                                                                                                                                                                there are also talks of introducing a       SUBSEA EUROPE DINNER
Halliburton, Hallin Marine UK Ltd, Hayward Tyler,                                                                                                                                                       degree programme focused on the             London Aquarium
HCL Fasteners Ltd, Hockway Ltd, Hydrasun,                                                                                                                                                               subsea industry.
Hydratight, Imes Systems, Infield Systems Ltd,
Infinity Resources UK Ltd, Insensys Oil and Gas,       Members Honoured at Europe’s                                                                                                                                                                 29th October
Inspectahire Inst. Co. Ltd, INTEC Engineering (UK)                                                                                                                                                                                                  SUBSEA EUROPE
Ltd, Isleburn Ltd, iXSea Ltd, J & S Marine Ltd, J P
Kenny Engineering, J. Ray McDermott, K.D. Marine
Ltd, Kongsberg Maritime Ltd, L&N (Scotland) Ltd,
                                                       Largest Subsea Showcase                                                                               Try Not to     London to Attract
                                                                                                                                                                                                                                                    Islington, London
                                                                                                                                                                                                                                                    30th October
Master Flo Valve Co (UK) Ltd, MCS, Meniscus
                                                       Record number of delegates attended Subsea 08
                                                                                                                                                             Lose Your Head Key Players from                                                        DOT
Solutions, NaREC New and Renewable Energy
Centre, National Hyperbaric Centre, National
Oceanography Centre, Nautronix PLC, NCA - Norse        The 2008 winners of the Subsea
                                                                                                                                                                                                                                                    Perth Australia – 12 companies
Cutting & Abandonment Ltd, NCS Survey Ltd,
NETmc Marine, Nexen Petroleum UK Ltd, NSIG             UK’s annual Business Awards were
                                                                                                             • Expro North Sea Ltd won                       Continued from front cover                 Overseas                                    exhibiting in the Subsea UK Pavilion
(Northern Scotland Industries Group), Oceaneering,     announced earlier this year at a gala                   the award for Subsea                                                                     Continued from front cover                  3/5th December
Oceanlab, University of Aberdeen, OceanTeam 2000       dinner, sponsored by Acergy, in                         Company of the Year                           enter the game in the next year or
(OT2K), Oceanteam Power & Umbilical Ltd, ODS-          Aberdeen.                                                                                             so. Competition will then be turned        contractors of the subsea oil and
                                                                                                                                                                                                                                                    SUBSEA 09
Petrodata Ltd, Offshore Marine Management Ltd,
                                                          The awards, set up to highlight the
                                                                                                             • Best Newcomer to the                                                                                                                 Aberdeen
OIL Engineering Ltd, Optical Metrology Services                                                                                                              up a notch just as the supply side of      gas and wider marine sectors from
Ltd, Pal Shipping, Pan-Ocean Engineering Ltd, PDL      hard work and excellence of both                        Subsea Industry was Brinker                   the market has the potential to            across Europe and Africa.                   11/12th February
Solutions (Europe) Ltd, Pegasus International (UK)     subsea organisations and individuals                    Technology                                    grow like a virulent plague.                 Subsea Europe follows the success
Ltd, Petrofac Facilities Management, Project           from across the UK, were held on                                                                        A great many now have a great deal       of last year’s event in Paris – Subsea      SUBSEA TIE BACK FORUM
Development International Ltd, Proserv, Prospect,
                                                       the night of Subsea UK’s annual                       • In order to recognise the                     at stake. Every side of the market is      Forum – which saw over 300                  San Antonio, Texas
RB Valvetech Ltd, RBG Ltd, Reson Offshore Ltd,
Robert Gordon University, Rockwool Ltd, Neptune        flagship event – Subsea 08.                             new talent coming into the                    exposed to risk, but not necessarily       delegates attend the two-day event.         3/5th March
Ross Deeptech, Rotech Subsea Ltd, Roxar Ltd,              A record number of over 2,000                        industry, the award for Best                  to the same degree. Even if some of          This year’s event, to be held on
RUCO Ltd, Saab Seaeye Ltd, Saipem UK Ltd,
                                                       delegates attended Subsea 08’s two                                                                    the risk is much more on the               the 30th October 2008 at the                book for all these events at
Sonsub Division, Schilling Robotics Ltd,                                                                       Young Personality of the Year                                                                                                        www.subseauk.com
Schlumberger (Associate Member), Scottish              day exhibition and conference at the                                                                  shoulders of vessel owners with            Business Design Centre in Islington,
Enterprise, Sea Steel UK Ltd, Seal-Tite UK LLC,        AECC on the 13th and 14th                               went to Klaire Evans of                       speculative tonnage being built, that      is organised with support from the
Seebyte Ltd, Self Energising Coupling Company          February. Over 90 exhibitors and an                     Brinker Technology                            still has implications for the whole       Department for Business Enterprise
(SECC), Shell UK Ltd, SMD Hydrovision, Society for
Underwater Technology, Solstad Offshore (UK) Ltd,
                                                       impressive line up of speakers from                   • The award for Greatest                        market. Venture capital is a much          and Regulatory Reform.
Sonardyne International Ltd (Aberdeen),                the international subsea sector were                                                                  bigger factor than previously. Plus,         As well as offering technical          London Aquarium on the evening of
Sonavision Ltd, Subocean Group Ltd, Subroutine         present to discuss the supply and                       Individual Contribution to the                most of the contractors and some of        insights, the conference will            29th October.
Ltd, Subsea 7, Subsea Domain Ltd, Subsea               demand issues facing the industry.                      Subsea Industry went to                       the ship owners are publicly quoted.       discuss the impact of the high oil         David Pridden, Chief Executive of
Support & Intervention UK Ltd, Subsea Integrity
Group (SIG), Sulzer Pumps (UK) Ltd, Talisman              The conference entitled, ‘A View to                  David Turner – Subsea                         That puts them under constant              price and unprecedented levels of        Subsea UK said: “This event is a
Energy UK Ltd, Technip UK, Thales Underwater           the Future’, featured an array of                       Operations Manager with                       pressure to deliver over and over          activity.                                prime opportunity for us to debate
Systems Ltd (associate), IHC Engineering               heavy-weight industry speakers                                                                        again, even now when the market              The exhibition is an opportunity to    key issues and showcase
Business, The Underwater Centre, Total E&P UK          including Tom Botts of Shell, Peter                     BP. David has a history                       could be considered to be at its           highlight the skills, capabilities and   innovations from the subsea
plc, Tracerco, Trelleborg Offshore, Tritech
International Ltd, Triton Group, University of         Blake of Chevron and Professor D                        stretching back 30 years in                   zenith. That pressure is only going to     resources of subsea companies to a       industry. London is a key city for us
Aberdeen, UTEC Survey, Venture Production,             Haldane from Heriott Watt University                    subsea oil and gas                            get worse, especially once the market      very important audience. Visitors will   as we hope to attract delegates
VerdErg Connectors Ltd, Vetco Gray UK Ltd,             and was sponsored by CSL.                                                                             gets more tricky, and it will.             be able to get a snapshot of what        from as many European capital
Visualsoft Ltd, Wellstream International Ltd, Wilton
Marine Services Ltd, Wireless Fibre Systems,
                                                          On the night of the conference                     For information on Subsea 09 and                                                           the UK’s subsea industry offers – in     cities as possible.”
                                                                                                                                                             • To obtain the new edition of Strategic
Xodus Group Ltd.                                       (13th) the Subsea Business Awards                   the next Subsea Business Awards                   Offshore Research’s Global Subsea Market
                                                                                                                                                                                                        one day, under one roof.                   For further information on the
                                                       2008 Dinner honoured the following                  please contact admin@subseauk.com                 report contact Jo Slade at                   Preceding the event, a prestigious     event please contact
Designed and printed by www.designinc.co.uk            companies and individuals:                          or visit www.subsea09.com                         jo@strategicoffshore.com                   networking dinner will be held at the    trish@subseauk.com
4 SUBSEA UK NEWS JUNE 2008                                                                                                                                                                                       5 SUBSEA UK NEWS JUNE 2008

SUBSEA UK NEWS                                                                                                                                                                                             SUBSEA UK NEWS


Subsea UK Website Makeover                                                                                                  Subsea Industry Addresses
After months of careful planning and development, Subsea UK
has relaunched its website: www.subseauk.com. The new site                                                                  Staff Retention
provides comprehensive detail about the UK subsea industry
and its members and its new look indicates the significance of                                                              A survey, set up by Subsea UK in           Resourcing Manager for
the organisation’s commitment to one of the UK’s fastest                                                                    collaboration with its Skills Forum,       Subsea 7, also admits
growing sectors.                                                                                                            has revealed that staff retention, by      that retention should be
  The new site is aimed at presenting the UK subsea industry                                                                subsea companies in the UK, is on          a long-term focus and
globally, giving visitors a clear picture of the British sector.                                                            the up. The survey was conducted           adds: “While these
  Office Manager of Subsea UK, Trish Burrell says: “We’re                                                                   amongst Subsea UK members to               findings suggest that
delighted with the new site. We have so many members,                                                                       establish what the current rate of         staff turnover has at
non members and visitors,                                                                                                   staff turnover was and how it              least slowed somewhat,
that it was important to                                                                                                    reflects against the previous year.        it has also revealed the
focus on a user friendly                                                                                                      With various reports indicating          benefits of employing
portal. With over 170                                                                                                       that the industry has critical issues      permanent staff in
member companies                                                                                                            with regard to retaining its staff,        relation to retention.  ”
supporting Subsea UK it was                                                                                                 Subsea UK felt it was timely to               “Through these
also essential to have a                                                                                                    conduct a survey among its members         surveys, where we are
system that showcases their                                                                                                 to establish how serious the               able to share
products and services                                                                                                       situation has become.                      information, the
through an easy-to-use site.     ”                                                                                            However, good news emerged from          collaboration of industry
  From the website, users can                                                                                               the findings which revealed that           is vital for our sector to
gain information on the                                                                                                     annual staff turnover is running at an     establish and act upon
industry through articles,                                                                                                  average of less than 10%, with             the issues we face.  ”
reports, industry news,                                                                member companies working in          majority of members agreeing that             The Skills Forum,
directories, events and links to                                                       the subsea sector can also be        this is lower than the previous year.      which was set up to                         Stewart adds: “There is a need to
other relevant sites.                                                                  listed in Subsea Pages and take        The survey has also indicated that       address and shape policy and major        stimulate our engineers and promote
  Subsea Pages, the online                                                             advantage of the 630 hits on         a higher rate of contract staff            initiatives in the skills area, is also   the industry as part of a modern
directory for subsea                                                                   the site daily.                      negatively reflects on a company’s         focusing on encouraging chartered         knowledge-based economy. Our
companies, has also been                                                                  The new website, designed by      overall retention rate.                    status by persuading companies that       industry needs to promote chartered
updated to feature a similar                                                           Design Incorporated, is available      Dianne Stewart, Chair of the             it is in their interest to employ         status giving companies a recognised
design as the new site. Non                                                            at www.subseauk.com.                 Subsea UK Skills Forum and Global          chartered engineers.                                                 ”
                                                                                                                                                                                                                 level of ability competence.



                                                              Energy Minister to Attend
                                                                                                                            A Spectacular Window to Showcase Subsea
                                                              Subsea UK’s Parliamentary
                                                              Reception at the House                                        Subsea Aquatheatre gets Industry Backing
                                                              of Commons                                                    Subsea UK has commissioned the
                                                                                                                            build of a large-scale portable aquarium
                                                                                                                                                                                                                 subsea sector. Subsea UK
                                                                                                                                                                                                                 Communication Manager, Katherine
                                                                                                                            for highlighting subsea technologies:                                                Dawson said: “The event is a prime
                                                              Minister for Energy, Malcolm Wicks, has agreed to speak       the Subsea Aquatheatre.                                                              opportunity for us to showcase the
                                                              at Subsea UK’s first Parliamentary Reception at the              With funding from its members,                                                    Subsea Aquatheatre. We believe this
                                                              Pavilion Terrace at the House of Commons on the               Subsea UK is set to deliver this                                                     exhibit is a fantastic way for young
                                                              3rd June 2008.                                                attraction for its debut at the                                                      people and adults to play with
                                                                The reception will be hosted by Frank Doran MP on           ‘Energise your Future’ event in                                                      technology that is used in the real
                                                              behalf of Subsea UK and will welcome MPs, Peers and           Aberdeen’s Exhibition and Conference                                                 world and a chance to rid any
                                                              key industry leaders to present the UK’s subsea industry      Centre on the 26th June.                                                             negative stigma associated with a
                                                              to Parliamentarians highlighting the overall scale of the        Thanks to support from industry,                                                  career in the oil and gas industry. ”
                                                              industry, its impact upon the UK national economy and         the exhibit will demonstrate the                                                       “The UK subsea industry is one of
                                                              the technologies and companies involved across the UK.        technology used underwater, such as                                                  the most exciting and fastest
                                                                Key industry statistics will be presented which will        cameras, remotely operated vehicles                                                  growing technology sectors in the
                                                              show that within the UK, this technology driven,              and diving equipment.                                                                world that is pioneering Earth’s last
                                                              manufacturing and service based industry had annualised          Funding has come from several                                                     frontier. subsea is a career that can
                                                              revenues last year of £4.5bn of which 50% were from           member companies: Wellstream,                                                        take you to all four corners of the
                                                              exports, employed 40,000 people and grew by just under        Oceaneering, Subsea 7, Triton,                                                       globe – working in locations as diverse
                                                              30% making the UK global leaders. The figures reflect a       OPITO and the Engineering Business.                                                  as the North Sea, the Gulf of Mexico,
                                                              strong domestic industry but, more importantly, a rapidly        The event, organised through a                                                    Indian Ocean or even the Artic.  ”
                                                              developing international market as the oil and gas            multi stakeholder alliance partnership                                                 “Through this attraction we hope
                                                              industry seeks to exploit more hostile offshore               with Marathon, OPITO, Careers                                                        to show youngsters that there is an
                                                              environments and deeper waters. The global market is          Scotland, Energy Institute, Shell and      large tank containing 22,000 litres       element of fun in what we do and
                                                              considered to be in excess of £20bn and is set to grow        WSCA, will soon have the world’s best      of water where visitors to the            this is a chance for them to put
                                                              to in excess of £40bn.                                        marine technology at their fingertips.     exhibition can gain first hand                                           ”
                                                                                                                                                                                                                 their playstation skills to use.
                                                                Sponsored by Expro, First Subsea, Trelleborg and            It is hoped that this attraction will      experience of what it is like to drive      The Subsea Aquatheatre follows
                                                              Wellstream, the event will welcome 100 guests, of which       encourage young people to pursue           an ROV in an aquatic environment.         the concept of the National Marine
                                                              50 will come from the industry, all of whom will be invited   careers in science and engineering.          One of the main aims of this event      Aquarium’s Aquatheatre (pictured)
                                                              by Subsea UK.                                                    The Subsea Aquatheatre will be a        is to tackle the skills shortage in the   based in Plymouth.
6 SUBSEA UK NEWS JUNE 2008                                                                                                                                                                              7 SUBSEA UK NEWS JUNE 2008

MEMBER UPDATES                                                                                                                                                                                    MEMBER UPDATES

And Now For something a Little Different…                                                                              Subsea 7 Opens North Sea
Growth of the subsea sector has brought with it new         is positively and adequately preparing him or her for
challenges, ranging from the current skills shortage to
the fall of activity in the North Sea necessitating the
need to operate in new and potentially hostile
                                                            their job.
                                                               How many SMEs operational in these
                                                            regions would defer to the operator in
                                                                                                                       Spoolbase at Vigra, Norway
environments. Running contemporaneously to this is the      times of crisis? Many assume that the                      The base was officially opened by Kristian Siem, Chairman of Subsea
challenge of promoting the UK as a global hub and centre    security and, if necessary, evacuation of                  7 Inc, Knut Støbakk, the Mayor of Giske Community, Morten Ruud,
of excellence for the sector.                               their staff will be provided by the                        Executive Vice President of StatoilHydro and Mel Fitzgerald, Chief
   Challenges can, of course, be overcome but with the      operator – this is often not the case.                     Executive Officer of Subsea 7 in a ceremony recently held at the
largest areas of growth for the subsea sector forecast      Similarly, while all of these companies will               base.
as West Africa, Latin America and Asia, one obstacle to     have crisis management plans in place to                     The $30 million / NOK 200 million investment is key to developing
be overcome is the ‘challenging’ nature of these            deal with the failure of equipment, how                    Subsea 7’s already strong pipelay capability in the North Sea market.
operating environments themselves.                          many have crisis management plans                          Furthermore, it provides a strategic platform for new geographic
   Headline-grabbing incidents of kidnap and vessel         in place to deal with an emergency                         markets such as the Barents Sea as that region opens up.
seizure in the Niger Delta aside, the issue of security     of a security nature? For those
needs to be raised. Whether this is in terms of             that do, does that plan dovetail
economics and the risk to the wider operation, or the       with that of the operating
risk to personnel, this is an issue that companies need
to address.
                                                            company to which you are
                                                            contracted?                                                Acquisitions Greatly Expand Acteon’s
   Security is more than fences and armed guards. It is a      In order to continue to promote
state of mind: both the collective mind of a company, and
that of the individuals it employs. Thorough ground work
                                                            the UK subsea sector as a global
                                                            leader, companies and their staff are
                                                                                                                       International Presence
prior to deployment of equipment or a company’s number      required to operate in these growing
one asset – its staff – is a necessity in the current       market areas with confidence and in                        Acteon has announced the                Executive, Acteon, said, “We were        strategic drive to increase the
geopolitical climate.                                       safety. With an integrated approach to                     acquisition of both Singapore-based     attracted to CAPE by its strong          amount of business we do in this
   At a company level the decision of whether or not to     security and thinking beyond the                           CAPE Group and 80% of Brazilian         reputation with the principal players    area of the world. ”
commit to operations in a specific location can be          stereotype, UK companies can fly the                       mooring and anchoring equipment         in the region, its local market             The acquisition of Fluke increases
assisted by the provision of actionable intelligence. The   flag of the subsea sector and reap the                     specialist, Fluke Engenharia Ltda.      knowledge and, not least, the firm fit   Acteon’s geographical presence in
same is true for the individual employee, for whom          financial rewards these geographical                         Cape Group, which employs 28          between its main areas of expertise      the key deepwater Brazilian market
something as simple as travel awareness training can        hotspots have to offer.                                    people and has an annual turnover of    and Acteon’s existing service            and adds extensive capabilities to its
provide him or her with the skills to deal with             Claire Fleming AKE Group                                   approximately $13 million, is well               ”
                                                                                                                                                               portfolio.                               mooring systems services.
extraordinary situations and the faith that the employer    new Subsea UK member                                       established in two main business           “The company also has an                 Fluke employs 350 people spread
                                                                                                                       areas in South East Asia: pipeline      important dockside operations base       between its office in Rio de Janeiro
                                                                                                                       inspection, repair and maintenance,     in Singapore, which will act as a        and an 80,000 m2 fabrication,
                                                                                                                       and foundations and piling.             sales and service centre for other       maintenance and inspection facility
                                                                                                                         Richard Higham, Group Chief           Acteon companies and support our         in Macaé.
                                                            Regional Manager
                                                            Appointed To Open
                                                            Asian Base For
                                                            Rotech Subsea
                                                            Mass-flow
                                                            excavation (MFE)
                                                            specialists Rotech
                                                            Subsea has
                                                            appointed Regional
                                                                                                                       The Russians
                                                            Manager Barry
                                                            Silver to open a                                           are Coming
                                                            base in Singapore to
                                                            cope with swelling                                         The Underwater Centre recently
                                                            opportunities in the                                       welcomed the first in a series of
                                                            region.                                                    ROV students from Russia. The
                                                              The company,
                                                            which operates a
                                                            unique and patented
                                                                                                                       group, and their translator, have
                                                                                                                       come to Fort William from Pod Vod
                                                                                                                       Servis, an underwater/ technical
                                                                                                                                                               CSL Opens London Office
                                                            range of T tools, has Barry Silver – Regional Manager      services company based in Moscow.       Aberdeen-based subsea project            locations during 2008.
                                                            enjoyed growing                                              The group of students are studying    management and engineering                 The London office which opened
                                                            interest for its services in the oil and gas rich region   the three week ROV Pilot Technician     company CSL has opened a new             for business at the beginning of
                                                            and establishing a formal Asia-Pacific base was the        course, which covers a variety of       office in central London. This           March, is located midway between
                                                            next step in providing the best service to its current     subjects including electrical           expansion is in keeping with the         the City and the West End and was
                                                            and potential clients. The base will also service the      installation in adverse conditions,     company’s strategy to extend             chosen specifically because of its
                                                            Australian market but there are plans to open a base in    microprocessors and advanced logic      operations to other oil and gas          close proximity to a number of
                                                            Perth, Western Australia within the next 12 months if      used in ROV, and the components         regions outside Aberdeen by opening      independent oil and gas operators.
                                                            expected demand is met.                                    used in the hydraulic systems of ROV.   additional offices in key strategic
8 SUBSEA UK NEWS JUNE 2008                                                                                                                                                                                9 SUBSEA UK NEWS JUNE 2008

MEMBER UPDATES                                                                                                                                                                                      MEMBER UPDATES


                                                                                                                         Lord Cullen Opens Expro’s
                                                                                                                         Aberdeen Centre of Excellence
                                                                                                                         International oilfield
                                                                                                                         service company
                                                                                                                         Expro has reinforced
                                                                                 Scotland Rugby Captain                  its commitment to
                                                                                 joins Xodus Line-Out                    personal development,
                                                                                                                         training and world-
                                                                                                                         class safety
                                                                                 Scottish rugby captain Jason White      performance by
                                                                                 has teamed up with fast-growing oil     building a network
                                                                                 and gas engineering consultancy         of global Centres of
                                                                                 Xodus in a first-of-its kind            Excellence at each of
                                                                                 partnership.                            the company's main
                                                                                   The high profile player, recognised   bases.
Dynamic Positioning Services                                                     as one of the big-hitters in the
                                                                                 game around the world, will be
                                                                                                                           This network
                                                                                                                         includes centres in
Joins Global Subsea Technology                                                   closely aligned with Aberdeen-
                                                                                 headquartered Xodus for a year.
                                                                                                                         Egypt, South Africa,
                                                                                                                         Malaysia, Brazil, Louisiana and          importance training and competence      part in training at any of Expro’s
                                                                                   During this time he will become a
Group Seventh Acquisition for                                                    regular visitor to Xodus where he
                                                                                                                         Aberdeen.
                                                                                                                           The Aberdeen Centre of Excellence
                                                                                                                                                                  play in ensuring oilfield safety.
                                                                                                                                                                    The Centres of Excellence will
                                                                                                                                                                                                          Centres of Excellence.
                                                                                                                                                                                                            The Aberdeen Centre of Excellence
                                                                                 will be available to meet clients and                                            support employees to develop their      is the being used for all aspects of
Triton Group Holdings                                                            staff, imparting his knowledge of the
                                                                                 game, motivation and team-building
                                                                                                                         is at the heart of this global
                                                                                                                         network and acts as the flagship to      skills in order to achieve their
                                                                                                                                                                  potential, and will play a major part
                                                                                                                                                                                                          learning and development including
                                                                                                                                                                                                          HSE training, technical training in
                                                                                                                         the regional satellite locations. This
Aberdeen-based Dynamic Positioning Services Ltd (DPS) has been acquired          tips and maybe even some dressing       centre was officially opened on the      in developing fresh talent in the       well test, subsea, data acquisition
by Triton Group Holdings for an undisclosed sum.                                 room secrets.                           14th of May by Lord Cullen of            industry. Customers and other           and operations engineering. It is
  This is the seventh acquisition for UK-based Triton Group Holdings since                                               Whitekirk who, since leading the         external groups will also be able to    also used for sales and management
forming in 2007 with an ambitious strategy to build an international group of                                            public inquiry into the Piper Alpha      benefit from Expro’s technical and      training, project management, and
businesses offering a range of subsea technology and associated services.                                                disaster, has focused on the critical    professional expertise by taking        supervisory training.
                                                                                 Hydro Group Secure
                                                                                 Funding for Growth
From Aker Kvaerner to Aker                                                       Hydro Group plc, a global solutions     New Multi-Million-
                                                                                 provider of optical and electrical
Solutions – Launch of New                                                        products in the subsea technology
                                                                                 industry, has been granted £4 million
                                                                                                                         Pound Base for World-
Brand Identity                                                                   capital funding by Clydesdale Bank to
                                                                                 develop progressive new facilities.     Renowned Tronic Team
                                                                                    A major national and international
                                                                                 supplier of harsh environment
                                            The announcement followed the        engineered products to the offshore
                                          last ever Aker Kvaerner Annual         oil and gas, defence, oceanographic,
                                          General Meeting. President & CEO,      renewable energies, diving and
Aker Kvaerner, a global provider to the   Simen Lieungh, unveiled the brand      ROV/AUV markets. Aberdeen based
process and energy industries, has        identity among shareholders and        Hydro Group will use the secured
changed its name to Aker Solutions.       invited guests as well as to           funding to build research, design and
At the same time it launched its new      stakeholders worldwide via             engineering test facilities at
logo and visual profile.                  webcast.                               Aberdeen Science and Energy Park.




2H Offshore Opens Regional Base in Malaysia
2H Offshore, an Acteon company,           When it became clear that the
announced it is now open for              requirements of this market would                                              Work will start shortly on creating a new multi-million-
business in Kuala Lumpur in an effort     coincide with our core skill-sets we                                           pound base for international oilfield service company
to meet deepwater engineering             committed ourselves by forming a                                               Expro’s Tronic products division in Ulverston, UK. The
demands in Malaysia and the               comprehensive plan to develop a                                                new facility will consolidate the Tronic operations in a
Asia–Pacific region.                      truly Malaysian business in the                                                single, modern site, and provide an improved working
   The riser engineering specialists      Asia–Pacific region. We recruited                                              environment for employees.
made known their commitment to            local engineers and trained them so                                              Around 260 people are currently employed across
serve Malaysia with their expertise.      that now we can use them in our                                                several Tronic sites in the Ulverston area. The
Frank Lim, principal director, said,                  ”
                                          local office.                                                                  ambitious move will allow the business to consolidate
“I started coming to Kuala Lumpur                                                                                        its operations in one location, which has the capacity
on behalf of 2H Offshore in 2005.                                                                                        for more than 450 employees.
10 SUBSEA UK NEWS JUNE 2008                                                                                                                                                                                  1
                                                                                                                                                                                                            1 SUBSEA UK NEWS JUNE 2008

MEMBER UPDATES                                                                                                                                                 MEMBERS’ AWARDS & RECOGNITION

Balmoral:                                                                                                                   Subsea Sector
Investment                                                                                                                  Shines Brightly
                                                                                                                            at Scottish
Needed to Keep                                                                                                              Enterprise Awards
Pace With                                                                                                                   Major accomplishments in Scotland’s
                                                                                                                            energy industry were honoured at
Demand                                                                                                                      this year’s Scottish Offshore
                                                                                                                            Achievement Awards. Subsea UK
As the offshore industry, particularly                                                                                      members shined brightly with Subsea
the subsea sector, continues to                                                                                             7 obtaining the top award for overall
predict levels of growth unheard of                                                                                         achievement as well as the export
for many years, supply companies                                                                                            achievement award and, as an added
must commit to substantial                                                                                                  bonus, was highly commended in the
investment simply to keep pace with                                                                                         succeeding through people category.
the growing demand for enabling                                                                                               MCS received the
technologies such as surface and                                                                                            Internationalisation of Scottish Skills
subsurface buoyancy.                                                                                                        awards and Brinker celebrated a           Small Company and Rising Star for      Klaire Evans, who was a joint winner
   Aberdeen-based Balmoral Offshore                                                                                         double win with Most Promising            their business development manager,    in this category..
Engineering has made such an             very proud to announce the latest        produce, test and provide on-time
investment in its research and           development in our syntactic             delivery of a fully comprehensive
manufacturing facilities to ensure its   processing plant.  ”                     range of buoyancy and PU products.”                                                 Hertfordshire-based Optical Metrology Services (OMS) has notched up
client-base benefits from the very
latest technology in terms of new
                                           “This is the latest upgrade to our
                                         facility in just over two years and
                                                                                                                            OMS Measures                              another award for innovation. The UK company, which specialises in precision
                                                                                                                                                                      measurement services and tools for the oil and gas industry, has just
and innovative materials, advanced
processing techniques, enthusiastic
                                         provides Balmoral with a
                                         manufacturing capacity that is the
                                                                                                                            up for Award                              scooped its third prestigious Pipeline Industries Guild award.
                                                                                                                                                                        OMS have added the Guild’s award for ‘Significant Contribution to Subsea
project management and proven            envy of the industry.                                                                                                        Pipeline Technology’ in 2008 to other recent awards. The company has
product performance.                       What does this mean to project                                                                                             previously won a Queen’s Award for Enterprise in Innovation and a Pipeline
   Jim Milne, Balmoral’s chairman and    engineers though? Put simply, we are                                                                                         Industries Guild award for ‘Land Based Technology’ in 2007 and ‘Subsea Rigid
Managing Director, told us: “I am        optimally positioned to design,                                                                                              Pipeline Technology’ in 2004.



Vetcogray to Expand                                                               Tritech Sonars
Deepwater Capabilities With                                                       Uncover Secrets
New, Multi-Million Dollar Test                                                    of Malta’s
Centre at its Nailsea, UK Site
                                                                                  Historic Water
VetcoGray, a GE Oil & Gas business, has announced plans to build a new,
multi-million dollar hyperbaric test centre at the company’s Nailsea site.        Systems
   Located next to the existing assembly and test facilities, the new world-
class test centre will utilize hyperbaric (high-pressure oxygen) technology to
                                                                                  Miniature sonars, engineered by
simulate operational conditions at the seabed. VetcoGray’s subsea control
                                                                                  north east Scotland-based Tritech
modules will be rigorously tested to identify any dormant fault conditions
                                                                                  International Limited, have been
that otherwise would be detected only after the pod was installed on the
                                                                                  invaluable in helping to uncover the
sea floor.
                                                                                  deep secrets of Malta’s historic
   Dave Tucker, Chief Operating Officer of VetcoGray, noted: “Over the next
                                                                                  fresh water systems.
five years, most of our projects will involve testing of equipment at depths
                                                                                    Several reservoir sites in Malta
of 3,000 meters. But the trend in the industry is toward applications in
                                                                                  and Gozo have been the focus of
deeper water. Our new facility will have a test capability of 4,000 meters,
                                                                                  collaborative archaeological
enabling us to address the future needs of our customers.     ”
                                                                                                           explorations
                                                                                                           by AURORA
                                                                                                           Trust, Marine
                                                                                                           Resources
€1 Billion Boost to Technip’s Asset Base                                                                   Development
                                                                                                           Foundation
Leading engineering and construction company, Technip, recently announced                                  and California
it is to invest over 1 billion Euros in advancing and extending its asset base,                            Polytechnic
including the addition of 4 new vessels to its already substantial fleet.                                  State
   With the buoyant Oil and Gas market, Technip’s fleet, which support its                                 University.
Global subsea operations, has been working at near full capacity and with                                  The
the anticipated growth of the subsea sector, the decision to embark on the        investigations aim to understand
asset investment programme was deemed essential to ensure Technip                 the complexities of underground
continues to provide its clients with sustainable solutions to optimise the       cisterns and infrastructures and to
management of the world’s energy resources.                                       research their evolution.
12 SUBSEA UK NEWS JUNE 2008


MEMBERS AWARDS & RECOGNITION


WWW.SUBSEAUK.COM




Fundraising Trek To Mount Kilimanjaro
Puts Local Charity On Top Of The World
Local charity VSA is on top of the world after receiving a donation of over £1,000, thanks to the spirit of adventure
of a DOF Subsea UK employee and the company’s financial support.
  Mona Petrie, a software engineer at the Aberdeen-based subsea operations support company, successfully reached
the summit of Mount Kilimanjaro in Tanzania, known as “The Roof of Africa,” last month. Reaching the 5895 metre
summit took seven days, during which time she encountered a whole spectrum of weather conditions, as well as
suffering from altitude sickness.


Subsea Intervention A Double Show of Support From Technip
Team Passes Ten     Technip has announced that it has   This comes at a time when Technip
Year Safety         donated a substantial sum to help also announces that it has donated
                    North East cancer charity, CLAN   £2000 of Graphic Design software
Milestone           (Cancer Link Aberdeen & North)    and ten ‘high end’ PCs to its partner
                                                                launch the ‘123’ campaign, which                                 school, Westhill Academy. The new
The subsea intervention team within                             aims to raise £3 million over the                                equipment and software aims to help
Chevron Upstream Europe’s (CUE)                                 next two years. The money is being                               pupils complete coursework more
drilling, completions and subsea                                raised to fund a new fit for purpose                             quickly and efficiently and allow them
group (DCSG) recently achieved an                               support centre, which is needed to                               the chance to become more familiar
outstanding safety milestone – 10                               ensure the charity is able to meet                               with equipment used in the Industry;
years of field operations without a                             the current and future needs of                                  helping them ‘hit the ground running’
Days Away From Work Case                                        people living with cancer in Aberdeen                            should they choose a career in the
(DAFWC) incident.                                               and the North of Scotland.                                       Graphics discipline.

Subsea UK The Innovation Centre, Exploration Drive, Aberdeen Science and Energy Park, Bridge of Don,                                          With input from our membership, Subsea UK
Aberdeen AB23 8GX Tel: +44 (0)1224 355355 Email: admin@subseauk.com www.subseauk.com                                                          News is published three times a year. In
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While every effort has been made to ensure that the information presented in this newsletter is accurate, Subsea UK assumes no
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