WorldHorizon - from Complexity to Simplicity - BW Group
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WorldHorizon
Q u a r t e r ly M a g a z i n e o f t h e B W G r o u p MCI (P) 009/11/2014
From
Complexity
to
Simplicity
Editorial
Publisher For further information,
BW Group please contact:
Responsible Editor BW Maritime Pte Ltd
Nick Fell 10 Pasir Panjang Road #18-01
Mapletree Business City
Managing Editor Singapore 117438
Lisa Lim + 65 6337 2133
enquiries@bwmaritime.com
Editorial Team
Arathi Menon BW Gas AS
Kate Langstrom Professor Kohts vei 5, 1366 Lysaker
Roy Lee P.O. Box 443
1327 Lysaker, Norway
Contributions From + 47 6721 1600
Anders Bohm information@bwgas.com
Bo Sheng Wong
Cathinka Fornebo Mellem BW Offshore Norway AS
Christina Chu Drammensveien 149
Corinne Hobson P.O. Box 33 Skøyen
Erle Kristen Wagle 0212 Oslo, Norway
Hugo Haeselich + 47 2313 0000
Jon Birkholm information@bwoffshore.com
Joyce Lim
Leonard Harbottle BW LPG Pte Ltd
Marita Standvoll 10 Pasir Panjang Road #17-02
Miriam V. Basco Mapletree Business City
Mukesh Sharan Singapore 117438
Vibhas Garg + 65 6705 5588
Zhihui Seah general.enquiries@bwlpg.com
Design & Production Green Marine Capital
Lancer Design Pte Ltd 10 Pasir Panjang Road, #17-02
Singapore 117438
+65 6705 5588
WorldHorizon
Contents 02/2015
04 Chairman’s message 24 Engaged, Enabled and Energised In the Spotlight
BW’s biannual engagement survey shows 22 From Banking to Shipping
a strong team behind the company BW welcomes Petter Larsson, an
experienced banker, to the family
25 Steady Growth
With half of its newbuilding programme
delivered and a total of 38 vessels
on water, BW LPG adds four VLGC
newbuildings to its fleet
26 Onboard BW Princess
06
World Horizon learns more about BW LPG
22
CEO Nicholas Gleeson’s recent experience
onboard one of the company’s vessels
Global BW
06 Complexity to Simplicity 28 BW Group Fleet
BW constantly adapts to market changes and
reinvents itself to stay lean and fleet footed
29 AROUND THE WORLD
12 Turning Gas into power
BW adds a floating storage and
regasification unit to the fleet
33 BW cryptic crossword
1q2015 answers
08
14 Competent, Capable Cadets
Investing in the professional development
of our seafarers
34 Special Thanks To...
16 Start Them Young Feature
BW is helping shape the future of 08 BW Catcher FPSO Financing Deal
shipping, one child at a time Bags Award
ING Bank N.V., DNB Asia Ltd and Nordea
18 Here for the Long Haul Bank Norge ASA wins the Marine Money
As Rune Bjorbekk, Chief Commercial Officer Offshore Deal of the Year Award for Bank
of BW Offshore attests, keen foresight, Debt 2014
fortitude and flair are essential traits to rise
above the challenge that is managing a 10 Solutions to Sulphur Emission
global fleet of 16 FPSOs partners Regulations
GMC supports innovation in technologies
20 Two to Tango which can help shipowners comply with
BW’s Shipping and Fleet Management stringent emission control regulations
teams come together to hold a technical
seminar, share priorities and discuss
mutually-impacting KPIs
World Horizon Issue 02/2015 5
I
n the last edition of World Horizon, I focus and efficiency of operation. And our
wrote of the importance of changing current investment of time and money to
with the times, and how adaptability is improve our IT systems are also geared
a core strength of the BW Group. towards simplification and high quality
reporting on the things that matter – top
As organisations evolve, they become line improvements, cost effectiveness,
more complex. Companies are added, and smooth operations.
team size increases, processes multiply.
Although BW has always stayed on its All BW teams onboard and ashore have
toes and continues to do so now, all a role to play. When we have three
successful companies must keep watch processes where one will do, when
for complacency – the feeling that the we spend $2 where $1 will do, we ask
balance sheet is strong enough and each individual to consider how we
profits high enough to be able to afford can do things better. This requires good
more spending. judgement and working smarter, not
just working harder. Clearly we operate
If one loses the spirit of always trying in a business where robust processes
to do better, things can start to go are critical and some things cannot be
downhill. Productivity declines because short-circuited in the name of simplicity.
of bureaucracy, costs increase faster than But overall, we can make our jobs more
revenues, and suddenly people wonder enjoyable and the business more effective
why the organisation is no longer so if we can reinvigorate the founder’s
successful. No company is immune to this, mentality.
unless the focus remains on simplifying
even as we develop, staying lean even as Success is not a given, and businesses
we grow. which do not fight for efficiency in
everything they do will not succeed for
Our founder’s mentality encompassed long. To all of you who are working hard
hard work and frugality. Are those on our value of “always trying to do
principles still in place today? As a smart better”, please keep up the good work.
CEO once observed: “Simplicity equals
hard work. Complexity equals no work at
all”. And so it is fitting that our new CEO
Carsten Mortensen has made it a priority
to simplify our operations where we can.
Our moves to channel our business into Sincerely,
clear segments (Offshore, LPG, product Andreas Sohmen-Pao
tankers etc) is also to ensure clarity of Chairman
6 Global BW World Horizon Issue 02/2015
From
Complexity
BW constantly adapts to market
changes and reinvents itself to
stay lean and fleet footed
A
n organisation changes in simple structure is in place, one which can to mid-1980s into a diversified oil and gas
many ways – through major operate efficiently and respond quickly. maritime enterprise today.
initiatives such as mergers and
acquisitions, or minor activities A history of change The process of evolution and rejuvenation
such as departmental reorganisations and For over 75 years, BW’s history has been continues. In recent years, major changes
relocation of offices. one of change. Since the beginning of have come quickly. For example, the
Bergesen in the 1930s and World-Wide initial public offering (IPO) of BW LPG in
As an organisation grows and evolves, it Shipping in the 1950s, both companies November 2013, the creation of two joint
runs into the danger of over-complication. adapted to market forces through ventures (JV) with PAG and Pavilion Energy
While best practices and robust processes organisational changes – acquisitions, less than a month apart in May 2014,
are important, the introduction of public listings, fleet size adjustments as the retirement of Dr Helmut Sohmen as
overly burdensome requirements and well as forays into new market segments. Chairman of BW Group in November 2014,
complicated chains of command can slow Major changes happened between 2003 new BW Group CEO Carsten Mortensen,
progress and reduce efficiency. As an and 2005, with the combination to form new BW LPG CEO Martin Ackermann in
organisation changes to reflect market BW. The group has evolved from its bulk August 2015, and new CEO-designate of
demands, care must be taken so that a and tanker shipping heritage in the 1950s BW Pacific Tina Revsbech. In BW Offshore,
World Horizon Issue 02/2015 Global BW 7
to
Simplicity
With outstanding a new Chief Commercial Officer Rune The group has developed a strong leadership
Bjorbekk has been appointed to join the team over the past decade, which continues
personnel in the management team. Added to these are a within the new structure. With new
maritime sector robust newbuilding programme and active outstanding personnel in the maritime sector
joining us, we have acquisition initiatives. joining us, we have additional leaders who
additional leaders can exercise stewardship in developing the
who can exercise Harnessing opportunities company’s platform of assets and capabilities
stewardship in BW has significantly broadened its scope and bring BW into the next phase of growth.
of activity in the past decade across
developing the multiple maritime sectors and is well Changes need to be adapted to and with
company’s platform of positioned for future growth. To ensure the right attitude, leadership and good
assets and capabilities clarity of focus and efficiency of operation, communications, our teams are rallying
and bring BW into the efforts are underway to channel our together and seizing opportunities that
next phase of growth. business into clear segments. these changes bring.
8 Feature World Horizon Issue 02/2015 BW Catcher FPSO Financing Deal Bags Award ING Bank N.V., DNB Asia Ltd and Nordea Bank Norge ASA win the Marine Money Offshore Deal of the Year Award for Bank Debt 2014
World Horizon Issue 02/2015 Feature 9
USD2.3 billion
The contract value including FPSO
charter rate and operating expenses
650,000 bbl
FPSO storage
capacity
B
W Offshore congratulates ING and Nordea as Joint Bookrunners and BW Offshore and our FPSO capabilities.
Bank N.V., DNB Asia Ltd and Mandated Lead Arrangers. “[This is] a The project is fully financed” says Knut R.
Nordea Bank Norge ASA on being classic case of banks delivering value Sæthre, CFO of BW Offshore.
conferred the Marine Money to a client in the clean and consistent
Bank Debt Deal of the Year Award. BW way needed for the company to USD2.3 billion contract value
Offshore signed a ten year USD800 million move confidently through the tender BW Offshore’s scope includes the delivery
facility in July 2014, which is a combined process”, says James Lawrence, of the FPSO, mooring system, and
construction and long term financing publisher of Marine Money. Marine installation and operation of the unit
facility. The floating production unit BW Money is the leading publication for throughout the charter period. The firm
Catcher will operate for Premier Oil in the coverage of financing trends and deals period of the contract is seven years,
UK North Sea, with expected first oil in in the international shipping and oil with extension options. Based on a field
2017. The contract was awarded to BW service market. For BW Offshore, it is a life of ten years, the contract value is
Offshore in April 2014 after a thorough testament of its professional managerial USD2.3 billion including FPSO charter rate
tender process. and financial skills and sophistication. and operating expenses.
Early commitment Fully financed The FPSO will have a processing capacity
“Commitment from leading banks was The debt facility will cover of 60,000 bbl and a storage capacity of
required during the tender, which meant approximately 70% of the total USD1.2 650,000 bbl. BW Offshore has ordered
we had to balance work between banks billion cost for the FPSO, with the a newly built hull from Japan for the
and client with our own requirements for remainder being funded by existing project, with conversion and integration
the facility”, says Ketil Eik, SVP Treasury of liquidity, other debt facilities and work to be performed in Singapore.
BW Offshore. The facility was substantially operating cashflow. “We are grateful for
oversubscribed by a group of 13 leading the continued support from our banks,
international banks, led by DNB, ING which again proves their confidence in
10 Feature World Horizon Issue 02/2015
Solutions to
Sulphur Emission
Regulations
GMC supports innovation in technologies
which can help shipowners comply with
stringent emission control regulations
T Scrubber
he International Maritime of the required fuel oil. There have been
Organization (IMO), through its various initiatives regarding the expansion
Marine Environment Protection of the current ECAs. For example, the EU technology has
Committee (MEPC), introduced issued a revised directive to its Member been proven and
regulations for the prevention of air
pollution under Annex VI of the MARPOL
States stating that marine fuels with a
sulphur content of more than 0.5% (the
used extensively
Convention. Annex VI, which came into current limit is 3.5%) cannot be used in for onshore
force in May 2005 and subsequently their territorial seas, exclusive economic applications, but
amended, and other related documents set
a framework of mandatory limits on the
zones, and pollution control zones from
1 January 2020.
marine scrubbers
emissions of Sulphur Oxides (SOx), both are considered
globally and within the Emission Control Additionally, in February 2015, the a relatively new
Areas (ECAs). International Chamber of Shipping (ICS)
advised its members to be prepared
technology.
From 1 January 2015, the new SOx limit for the possibility that the global 0.5%
within the ECAs was reduced to 0.1% sulphur limit in marine fuels would be
m/m down from 1.0%. Under the revised implemented worldwide by the IMO from
IMO MARPOL VI regulations, the maximum 2020 rather than 2025. The ICS has also
sulphur content of bunker fuel would be urged the shipping and bunker refining
capped at 0.5% by 2020 or 2025, subject industries to work together to ensure
to a review in 2018 on the availability sufficient quantities of compliant fuelWorld Horizon Issue 02/2015 Feature 11
Engine Exhaust Gas
Possible Sea water
Scrubbed
plume control Exhaust Gas Sea water from scrubber
Sludge
Laser Gas
Analyser Control data
HMI Control Scrubber unit
Cabinet
Optional
Return pump Water treatment
Water
Water Monitoring
Monitoring De-aeration
vessel
Sludge Tank
Wash water
discharge
Scrubber In port reaction
Supply pump water pump
by 2020, rather than rely on the results 3. Sulphur removal from HFO in the pre- applications, but marine scrubbers are
of the fuel availability study by the IMO combustion stage before it is burnt. considered a relatively new technology.
in 2018. If any supply problems are Sulphur removal is a new technology While scrubbers require upfront capital
identified at the end of 2018, this will be and is still in the nascent stage; and expenditure and may result in higher
too late for governments to take remedial operating costs, these costs can be offset
regulatory actions. 4. Exhaust Gas Treatment Systems, by the potential savings in fuel expenses by
otherwise known as scrubbers, which using HFO instead of MGO.
The market has responded with remove sulphur from the exhaust
innovative solutions which can be gases from ships. Depending on the The actual time spent in the ECAs, the
adopted to ensure compliance with technology, scrubbers can also remove difference in cost between the various
upcoming regulations. The following are Nitrogen Oxide and Particulate Matter. fuel grades, and the commercial life of the
available in the market today: vessel are the main criteria that will affect
Electing to install a scrubber offers ship the payback period and the decision to
1. Switch to more expensive Marine Gas owners and operators greater flexibility install scrubbers onboard.
Oil (MGO) instead of using Heavy Fuel as ships can continue to burn HFO in open
Oil (HFO); waters and switch the scrubber on when Emissions control regulations are expected
travelling in ECAs, thereby meeting SOx to become more stringent in the future,
2. Change to alternative cleaner fuel, for emission limits. and shipowners are seeking effective, cost
example liquefied natural gas, which efficient technologies to ensure compliance.
requires extensive modifications to Scrubber technology has been proven to GMC is actively looking at innovations in this
a ship; work and is used extensively in onshore area to meet this demand.12 Global BW World Horizon Issue 02/2015
Turning
Gas into
Power
BW adds a floating
storage and regasification
unit to the fleet
O
n 29 May 2015, BW welcomed BW’s view on the market outlook on a crude, product and chemical tankers). BW
its first Floating Storage and medium to long term basis is positive, prides itself in maintaining and developing
Regasification Unit (FSRU), with the strong increase in supply from a high level of safety focus and technical
BW Singapore, to its fleet of new liquefaction projects coupled with competencies in the gas transportation
vessels. BW Singapore can not only sail solid demand from key economies, business. This organisation and track record
like a ship but can also sit like a terminal mainly in Asia, boding well for LNG forms a solid base for continued growth in
and regasify LNG in order to deliver gas to shipping requirements going forward. LNG LNG shipping.
where it is needed. Built at a cost of over transportation is a business which requires
USD250 million, she is another example of patience and a long-term perspective – A fitting name for a ship
BW’s long-term commitment to the LNG both BW strengths. BW’s first FSRU could not have been better
market. BW’s second FSRU is slated to be named. The name is appropriate because
ready in November 2016. Each FSRU has With close to half a century of experience like the country she is named after; she
a storage capacity of 170,000cbm, and in LNG, and a fleet of over 20 LNG ships, is very high quality, modern, and green.
they are amongst the largest FSRUs in BW is adding these two FSRUs to its Singapore also stands for adaptability to
operation. This FSRU is also designed to offerings so as to provide better service global market changes – Singapore is fast
trade as a conventional LNG carrier with a to customers. In addition, we have becoming a key hub for LNG trading in the
maximum sea going speed of 19.5 knots, lined up growth in the form of four LNG region, and the name creates a symbolic
an important feature for customers with newbuildings, most recently with several relationship between the ship and the
seasonal requirements. contracts with DSME for LNG vessels. country as an emblem of the growing
global LNG trade.
Long-term player in the LNG market BW Fleet Management a
The world needs clean energy, and this cornerstone of success Off to Egypt
vessel will help to deliver it. Between 2010 At the cornerstone of this delivery is BW’s On 4 August 2015, BW was selected
and 2014, floating regasification capacity in-house fleet management organisation, by the Egyptian Natural Gas Holding
doubled from 4% to 8% of the total global which serves a large and diversified fleet. Company (EGAS) to provide LNG
regasification capacity, and regardless of BW Fleet Management manages one of regasification services through FSRU BW
fluctuations in the energy markets, BW the largest combined fleets of LPG and Singapore. She will be ready for operation
expects demand to stay strong. LNG carriers in the world (in addition to in October 2015.World Horizon Issue 02/2015 Global BW 13 From left to right: Graeme McDonald, Yngvil Asheim, Carsten Mortensen (sitting left), HE Eng Sherif Ismail, Minister of Petroleum and Mineral Resources, Eng Khaled Abdel Badie, Chairman EGAS (sitting right), Sherif Sousa, 1st Undersecretary for Gas Affairs at the Petroleum Ministry, Tarek El Molla, CEO, EGPC.
14 Global BW World Horizon Issue 02/2015
Competent, A
global shortage of competent
and capable seafarers is keenly
felt in the industry, and in
response, BW is conducting
dedicated cadet training programmes
Capable
and participating in industry-led training
initiatives so as to grow a strong pool of
quality officers.
Investing in seafarers
BW has, for many years, invested in
Cadets
the recruitment and training of cadets.
In line with our strategy of promoting
and developing seafarers from Asia,
BW has set up successful cadet training
programmes in China, India, and the
Philippines. Graduates from these
Investing in the professional centres join the current pool of officers,
and provide additional strength to
development of our seafarers support fleet growth.World Horizon Issue 02/2015 Global BW 15
In China and India, BW provides 12-month candidates for grooming into officers. A BW success story
qualifying sea time for cadets so that BW has cadets attending the Warsash Says Captain George Padilla, a former
they can complete their certificate of Maritime Academy in Southern England. seafarer and now Manager at BW’s Manila
competency. In the Philippines, BW is a In June this year, Samuel Abraham Hiring Department, “Working at sea and
participant in the Norwegian Shipowners’ (Engine), Deacon Bitrus Emmanuel ashore requires a lot of patience. The
Association (NSA) Philippines Cadet (Engine), Tamanoiyowuna Green (Deck), journey from a cadet to working ashore is
Programme. BW supports this four- and Oseni Babatunde Oseni (Deck) like being on a lifeboat in the ocean with
year scheme through the provision of celebrated the completion of their Higher nothing but rolling waves in every direction.
scholarship grants, so that cadets can National Degree programmes and will Although the boat is equipped with oars,
undergo rigorous training without having shortly begin sailing as officers onboard which direction will you row? Now imagine
to worry about financial concerns. Recently, BW’s LNG vessels. The Higher National you see an island and you start rowing
a small training programme in Singapore Degree programmes at Warsash Maritime towards land. Sighting the island gives you
was also established to support our Academy typically last three years both motivation and purpose. I believe that
investment in the Singapore Flag Register. and consist of five phases each cadet if a cadet is well motivated and dedicated
must successfully complete, alternating to achieving, the goal of being in a
At home onboard gas and oil tankers between rigorous classroom blocks and management position is definitely realistic
In general, cadets specialise and are trained periods at sea where learned concepts are within 10 years”.
solely on either gas or oil tankers. In 2014, applied and skills are honed.
however, BWFM offered two Filipino cadets Leading by example, Captain Padilla is
the opportunity to spend six months on an A ten-year journey an excellent role model for BW’s young
oil tanker and six months on a gas tanker. When recruiting cadets, Len Harbottle, cadets. BW also extends our warmest
This pioneer initiative was a success and the Senior Manager, Marine Personnel & congratulations to all BW cadets who are
programme will be offered to more cadets Training, says, “Give me ten years, completing their studies at various colleges
this year. It is hoped that the result from and with dedication and hard work, and academies around the world.
this initiative will be a pool of junior officers you can achieve a management level
who are comfortable serving onboard oil appointment”. Over ten years, cadets
and gas tankers. can qualify for his or her first certificate
of competency at an operational level
Rigorous global training and, combining personal ambitions,
Looking away from Asia, a condition of developmental opportunities and training
our charter agreement with NLNG is provided by the company, and the
to ensure the employment of Nigerian necessary qualifying sea time, a promotion
seafarers. Our current training programme to a management level appointment is
for Nigerian cadets is to identify suitable well within reach.
Combining
personal ambitions,
developmental
opportunities and
training provided
by the company,
and the necessary
qualifying sea time,
a promotion to a
management level
BW cadets looking smart at a graduation ceremony at the Warsash Maritime
Academy. From left to right: Babatunde Oseni Oseni (Deck), Samuel Abraham
appointment is well
(Engine), Deacon Bitrus Emmanuel (Engine), Tamunoiyowuna Green (Deck) within reach.16 Global BW World Horizon Issue 02/2015
Start S
hipping is a cyclical business, which
is why we take on a long-term view
in the way we run the business at
BW. This also applies to how we
approach nurturing future industry talents.
Them
Collaborative spirit
To that end, BW consistently cooperates
with industry players to build on human
capital – for the short and long term – and
also maintain standards for recruitment so
Young
that shipping remains a competent and
competitive career.
In Norway, this is achieved through
a committee called the Workgroup 5
(WG5) which comprises BW Gas, Wilhelm
BW is helping shape Wilhelmsen, Solvang, Grieg Star, Höegh
Autoliners and Torvald Klaveness. Further,
the future of shipping, BW has always been working closely with
one child at a time the esteemed Norwegian University of
Science and Technology (NTNU) as well as
various renowned maritime academies,
particularly in areas of talent development
and deep sea shipping.
Class 2C of Grav Skool with Erle Kristin Wagle
at second row, far rightWorld Horizon Issue 02/2015 Global BW 17
Shipping is no child’s play
On 24 April, Environmental Performance
Manager Erle Kristin Wagle from our BW Moulding
office in Norway reached out to a group of future leaders
second-graders from Grav Skole in Bærum.
Playing the role of teacher for a couple of
hours that day, Erle gave a lesson on the The company’s quest in nurturing the next generation continues
history of shipping and how Norway came beyond the primary schoolers.
to be known as one of the top shipping
nations in the world. Through group work, Over in Singapore, on 24 March, BW Offshore welcomed 80
the 27 eight-year-olds learnt about basic undergraduates from the Norwegian Institute of Technology
ship design as well as the kind of work (NTNU) for an in-depth orientation of the company.
opportunities that are available in the
shipping industry. This introductory session, held at the Shangri-la Rasa Sentosa
Resort in Singapore, is an extension of BW Offshore’s active
Though it may seem that these children outreach to tertiary institutions. Firmly believing that the future
have a long way to go, Erle feels that it of offshore is theirs to mould, BW Offshore participates in various
always pays to start young, “After taking university career fairs to attract the next generation of employees.
them through shipping history alongside
hands-on shipping-related class activities CEO of BW Offshore, Carl Arnet presented to the students the
and playing videos from the Norwegian history, values and key milestones of the company, and he was
Shipowners Association, the kids now all followed by Senior Vice President Hans Kristian Langsrud, who
claim they will work with ships when they shared the key career programmes which BWO is spearheading
grow up!” The children went home with – the BW Offshore Internship and BW Offshore Graduate
newfound knowledge and enthusiasm for Programme. Each year, BW Offshore receives positive response
shipping, as well as a small bonus of BW from students attending the summer internship, as well as
caps and pens memorabilia. interest in pursuing long-term employment with BW Offshore.
The BW Offshore BW Offshore Graduate
Internship Programme
Each year, a group of six to Over a two-year period,
Some students from NTNU at Rasa Sentosa, Singapore 10 interns are recruited to graduates will come out with a
participate in an intensive solid overview of the business
eight-week tailor-made and a strong understanding
internship, where they spend of expectations and career
six weeks in Oslo and two possibilities within BW Offshore.
in Singapore during the Graduates typically spend six
summer holiday. Students months each in engineering,
will get international exposure projects and operations, with
and a real experience of the the last six geared towards
work environment at BW shaping a more long-term
Offshore. The programme permanent position, depending
is specially designed for on individual experiences and
students who are in their last preference, as well as company
year of graduate studies. evaluation and needs.18 Global BW World Horizon Issue 02/2015
Here
for the
Long
Haul
As Rune Bjorbekk, Chief
Commercial Officer of BW
Offshore attests, keen
foresight, fortitude and flair
are essential traits to rise
above the challenge that is
managing a global fleet of
16 FPSOs
O
ver the past three decades,
BW Offshore has completed
38 projects comprising 28
Floating Storage, Production and
Offloading (FPSO) vessels and 10 Floating
and Storage (FSO) projects. And as more
global oil production occurs in the deep
sea, especially with mature fields slowing
down, FPSOs inevitably get thrown into
the spotlight. These vessels are not only
moveable but also less costly as there is
no need to install infrastructure to connect
shore to fields.World Horizon Issue 02/2015 Global BW 19
“I would like to continue
with our approach of
investing in existing assets
i.e. converting old FPSOs
and extending their life
span while they are still
functional and producing.
We have found this to be as it is about being technically capable. return on investment. I have been here for
commercially viable – a In everything we do – from business 20 years and this is a common pattern in a
win-win solution that is development to tender development and cyclical business like oil and gas. That said,
welcomed by our clients.” from project execution to fleet operations
– the contract is key. Formalising a Chief
I remain optimistic in our business segment
because although easy oil may be history,
Commercial Officer position on the senior oil is not.”
management team merely reinforces the
way we conduct our business and gives Taking on company-wide commercial
the role the importance it deserves”. responsibility may be a large task, but it is
the satisfaction of the job – whether it is
For Rune, not a day goes by without when an extension of an FPSO is achieved
applying much of his technical expertise, or a project is delivered on schedule – that
Think long term logical thinking and common sense. “It spurs Rune on.
Indeed, opportunities always abound for is important that even as employees of
those in the FPSO business but it is only the business, we think and act like an “Securing redeployment for existing FPSOs
those who seize the right ones at the owner. We have a cradle to grave view of may be testing but once we garner a
right time who pull through in the end. our assets and that, I feel, is our unique contract, it is a pat on the back for everyone
Rune Bjorbekk, Chief Commercial Officer selling point.” involved.” Typically, a successful FPSO is
of BW Offshore is strongly aware of this deemed to be one that endures two to
and believes, in the cyclical oil and gas When asked how else BW Offshore sets three contracts (each ranging between five
business, that it pays to have patience itself apart from other industry players, and 15 years) in its entire lifespan.
and to apply a visionary approach when it Rune said that it is all about being
comes to overseeing the assets. operationally competent, educating the Change is the only constant
client on what is best for them to buy, and In the spirit of enterprise, Rune has already
Previously the Asset Management and implementing contract agreement models set his sights on the next milestones for
Commercial Senior Vice President, Rune’s that are flexible (for example, partly or BW Offshore.
20 years of industry experience comprise fully reimbursable Opex rates, Capex rates
15 years in the pioneering team of the aligned to production profiles, variable “I would like to continue with our
technology division, APL (Advanced compensation linked to production, etc) to approach of investing in existing assets i.e.
Production and Loading) where he was help meet both parties’ needs. converting old FPSOs and extending their
Project Manager, Fabrication Manager and life span while they are still functional
Head of Supply Chain, and five years at Keep calm, dig deeper and producing. We have found this to be
BW Offshore at where he spent the bulk of No doubt lower oil prices have stirred commercially viable – a win-win solution
his time as Vice President of Modification the industry, but it is the long-term view that is welcomed by our clients.”
Projects and managing the assets and and big picture view of the business
commercial aspects of the business as that have pulled BW Offshore through “My other target is for the team to secure
Senior Vice President. While his title may challenging times. “Lower oil prices will not redeployment of vessels coming off
have changed, he remains as the go-to man immediately affect us as we do not operate existing contracts, in particular, Athena
for all things commercial at BW Offshore. in a spot market, as ships and drill rigs tend and Azurite. It will take hard work and
to do, and the majority of field investments synergy from everyone to make this work.
Shuffling for success are already sunk costs. As long as clients But judging from the immense talent and
BW Offshore CEO, Carl Arnet, explains: can still generate a positive cash flow from dedicated people I have seen and had
“As a leadership team, we have long had their oil field operations, it makes sense for the privilege to work with so far in my 20
the understanding that our business is as them to continue operating even if the field years at BW Offshore, I’m certain we can
much about being commercially astute may not generate the originally expected achieve this.”20 Global BW World Horizon Issue 02/2015 Two to Tango BW’s Shipping and Fleet Management teams come together to hold a technical seminar, share priorities and discuss mutually-impacting KPIs I f time is money, then colleagues from BW Shipping’s Commercial and Operations teams as well as BW Fleet Management’s technical experts showed the value they placed on continued cooperation when they attended a three-hour in-house technical seminar in Singapore. Plain English Opening the seminar with a light-hearted call for jargon to be kept to a minimum, Vibhas Garg, Vice President and Head of Fleets (Singapore), said, “This seminar is a perfect example of our fourth value, where we are here together to create energy through collaboration. When we understand each other’s priorities and limitations, we further reduce chances for misunderstanding and tension. Disagreements are healthy when they force us to reflect on ourselves and expand our common ground. And such seminars are important to encourage more constructive disagreements.”
World Horizon Issue 02/2015 Global BW 21
levels of technical expertise to operate opportunity to share their perspectives
and upkeep. It takes 10-12 hours to on tank cleaning and Crude Oil Washing;
change a piston – an engine on average highlighting the risks, challenges and
has six to seven pistons and each piston regulations determining these activities.
weighs well over a thousand kilograms.
Oftentimes muscle power coupled with Always trying to do better
a sledgehammer and hydraulic tools are The seminar allowed all parties to think
needed to change nuts and bolts. For about current work practices, and how both
such critical pieces of equipment, planned teams can work together for the benefit
maintenance must be factored in to any of the company. It is also a great example
commercial agreement or time charter, of yet another company value – we all try
and unplanned maintenance minimised. to do better, in all that we do. When the
teams are accountable for key performance
Vagaries of weather and machine indicators (KPIs) that are cross-departmental
When working with huge equipment in in nature, it is important to ensure that
tight spaces, throw in the vagaries of such shared KPIs are met through team
weather at sea and you have a recipe for collaboration so that shared goals are
complex technical maneuvers. A vessel protected and not set aside in the pursuit of
can be seen as a floating factory with individual targets.
an intricate system of pipelines, valves
and pumps to manage as it transports its
cargo of energy around the world. Cargo
systems involve topics such as inert gases,
back pressure (a condition generated by
situations such as shore tanks being far
away or located at a height as compared
to the terminal) and cargo density.
These topics are everyday lingo for
colleagues in the fleet management
Jon Birkholm, Head of Commercial department, and concerns over their
(Tankers) agrees. “When we approached functioning are shared by colleagues in
Vibhas with the idea of a technical seminar BW Shipping’s Commercial and Operations
to teach the less technically-inclined departments. For example, if the inert gas
amongst us about the challenges on system is faulty, the vessel is unable to
running a fleet of world-class vessels, carry cargo and hence cannot be traded.
he was very supportive. The Commercial Cargo density is a factor which affects pump
and Operations teams will benefit from
knowing where key stress points are for
performance. Centrifugal cargo pumps are
designed to handle a certain density at a
Just how big is big?
fleet management colleagues when we specified back pressure to give an optimal At five storeys tall and
negotiate transactions and charters.” discharge rate, and anything outside of the
design parameters can affect discharge
weighing over two
Colleagues were taken through topics such performances and therefore turnaround million kilograms on
as engines, cargo systems, navigational
equipment and waste management – where
time and time spent in port.
average, these massive
routine operations may have an impact on Another common point of concern is a machineries churn out
commercial considerations. vessel’s tanks. At the heart of a vessel,
apart from her engine, are her tanks.
the power of over 35,000
Size matters Tank cleaning – while usually a voyage horses and demand
The heart of any vessel is her engine. Ships
have large engines but, just how big is
requirement when the Commercial team
from BW Shipping fixes a vessel – can also
high levels of technical
big? At five storeys tall and weighing over be undertaken for technical reasons which expertise to operate and
two million kilograms on average, these
massive machineries churn out the power
are initiated by BW Fleet Management,
such as for repairs or inspections.
upkeep. It takes 10-12
of over 35,000 horses and demand high The Operations department took the hours to change a piston.22 In The Spotlight World Horizon Issue 02/2015
From Banking
to Shipping
BW welcomes Petter Larsson,
an experienced banker,
to the familyWorld Horizon Issue 02/2015 In The Spotlight 23
“ I focus on
When did you join BW? in the shipping and financial institutions
I started my role with BW on 6 January segments. Subsequently I spent seven
2014. It marked an exciting new years with Nordea Markets where my last
beginning and new direction in my career
after many years in finance/banking.
tenure was as a Managing Director with
responsibility for origination within the
excellence of
What is your educational and career
energy and transportation sectors.
operations,
maximising
background? What are your duties and
I was at the Waldorf/Rudolf Steinerschool responsibilities at BW?
our earnings,
for 12 years (surprise to some), before As Head of LNG Shipping I have
spending two years in Officer Candidate commercial responsibility for our fleet
School where I specialised in military of LNG vessels. I focus on excellence in
intelligence. I then completed a Bachelor
of Science (BSc) degree in Business
operations, maximising our earnings,
serving our clients and searching for our
serving our
Management from King’s College London,
followed by a Master of Science (MSc)
next growth projects.
clients and
searching for
degree in International Accounting What do you consider vital skills for
and Finance from the London School your role?
our next growth
of Economics, as well as becoming a Motivation, perseverance, energy,
Certified European Financial Analyst teamwork skills, humour, some interest
(CEFA) and obtaining a Masters in and skills in numbers and client
Business Administration (MBA) from the
Norwegian School of Economics.
management.
projects.”
Tell us a little known fact about
Career-wise, I spent six years with yourself.
Citigroup, first through the Management I am the father of two girls named
Trainee programme (New York, London Louise (4) and Josephine (2) – they
and Oslo) and then VP in the Global are my pride, joy and frustration all in
Corporate and Investment Banking division. one. I also have a dog, a brown-dotted
I was a senior relationship manager for Dalmatian called Emil. I am also a keen
several corporate clients in Norway, mainly skier and tennis player.24 Global BW World Horizon Issue 02/2015
Engaged, Enabled
and Energised
BW’s biannual engagement survey shows a
strong team behind the company
B
W’s Human Resources department performance’ norm is derived from recent
conducts engagement surveys client studies conducted by the firm, which
through an independent third party includes organisations which meet two
professional provider every two years criteria: i) above industry-specific averages
to review the company’s work culture and for a range of financial measures, including
environment so as to identify improvement gross profit margin, earnings, revenue
opportunities. The latest survey, conducted in growth, and return on capital; and ii)
November last year, revealed a strong team favorable views of company culture and
powering the company. organizational practices. Close to 145,000
employees have been surveyed from over
Core engagement framework 25 firms.
Working with Towers Watson for the
2014 survey, employees were asked Strong leadership, stronger teams
91 core questions organised into 20 Survey results show that one of the key
categories ranging from leadership, values, drivers of our high sustainable engagement
organizational change, empowerment, score is the strong belief in our BW values.
to work-life harmony, retention and job Most employees also strongly believe in the
security. The questions centered on a core goals and objectives of BW, and are proud
engagement framework of three “E”s to to be associated with the company. They
measure ‘Sustainable’ Engagement– are feel empowered and enjoy the opportunity
our employees Engaged, Enabled and to do challenging and interesting work
Energised to deliver our best performance? in a safe work environment. With this
An Engaged employee has an attachment foundation, many would recommend BW
to the company and is willing to give as a good company to work for, and would
discretionary effort to achieve success; an work beyond what is required to help the
Enabled employee works in an environment company succeed. Employees do not face
that encourages productivity and obstacles at work when trying to meet
performance; and an Energised employee challenges, and are equipped to achieve
enjoys individual, physical and emotional excellent performance.
well-being at work.
Invested in the success of BW
An engaged team at BW BW is a leading global maritime group
BW’s survey response rate of 97% was involved in oil and gas transportation,
a first indicator of an engaged team. floating gas infrastructure, environmental
Analysing the actual survey responses technologies and deepwater production.
placed BW’s sustainable engagement score This reputation has been built over 75
at three percentage points higher than years by teams of dedicated and engaged
the norm of the Towers Watson Global employees who believe in the vision of the
High Performance Companies. This ‘high company, and are invested in its success.World Horizon Issue 02/2015 Global BW 25
Steady
Growth
With half of its newbuilding programme delivered and a total of
38 vessels on water, BW LPG adds four VLGC newbuildings to its fleet
5
LGCs
8
chartered-in VLGCs
25
owned VLGCs
8
newbuildings in total
O
n 10 April 2015, BW LPG signed to be met from free cash and a revolving A market-leading fleet, strong technical
ship building contracts with South credit facility. The vessels are expected management and valued relationships
Korea’s Daewoo Shipbuilding to be delivered in the third and fourth with industry’s leading customers has
and Marine Engineering (DSME) quarters of 2016. made BW LPG successful since listing in
to acquire four Very Large Gas Carrier November 2013. BW LPG’s long-standing
(VLGC) newbuildings. The newbuildings BW’s strong ties with DSME were reputation as a leading provider of safe,
which were previously reserved by an established over 20 years ago when reliable, and efficient LPG transportation
existing client of DSME became available World Wide Shipping took delivery of along with over 3 decades of operating
at short notice, enabling BW LPG to take one of its first VLCCs from the yard. experience in LPG shipping,
advantage of the opportunity to renew our Bergesen d.y also shares history with
fleet. This is the result of a planned fleet DSME, where the Berge Artic was built BW LPG’s market leadership is not
renewal initiative in light of continuing in 2001, and many vessels after that. defined solely by its vessel numbers.
strong growth in the LPG export market Speaking about these contracts, Andrew With strong technical management and
and in line with our commitment to Hoare, Chief Commercial Officer of BW valued relationships with the industry’s
provide safe, reliable and cost-efficient LPG LPG commented, “BW’s relationship leading customers, BW LPG’s long-
transportation solutions to our customers. with DSME afforded this opportunity standing reputation as a leading provider
to us when it became available. We committed to safe, reliable and efficient
The delivered cost of these vessels, continuously strive to deliver the best LPG LPG transportation solutions makes it the
including interest and other costs was set transportation solutions to our customers platform of choice within the industry.
approximately at USD 290 million. The and our growing fleet continues to allow
initial payments under these contracts are us to achieve this objective.”26 Global BW World Horizon Issue 02/2015
Onboard
BW Princess
World Horizon learns more about
BW LPG CEO Nicholas Gleeson’s
recent experience onboard one
of the company’s vessels
I
t should come as no surprise that then are staffed with qualified crew onboard. Safety at sea
BW LPG CEO Nicholas Gleeson enjoys Having an experienced and diverse team At BW LPG, safety is the topmost concern.
vessel voyages and has even spent of seafarers enables BW LPG to maintain Safety and the sanctity of life take
time on a couple of vessels before. On its track record of safe and reliable service precedence over all other considerations
his recent voyage onboard one of BW provision and generate new ideas that and it remains an essential element of
LPG’s Very Large Gas Carriers (VLGCs), translate to improved performance. Nick operations. At sea, onboard safety is
BW Princess, Nick had the opportunity to says, “Our management and operations everyone’s responsibility with the captain
interact with seafarers, understand the teams work hard to maintain and taking ultimate accountability.
work practices at sea and reflect on some continuously improve the close interaction
of the factors that have contributed to BW between staff on shore and at sea, At the heart of onboard safety is risk
LPG’s continued growth. which has received strong support from assessment. Risk assessments are
BW Fleet Management.” Voyages made performed to identify and mitigate risks
Crew onboard by the senior management and the for jobs onboard the vessel. Jobs are
Owning and operating the world’s largest operations team members are examples planned carefully with safety taken into
fleet of VLGCs does not in itself make BW of our commitment to make this initiative consideration. Some of the safety measures
LPG a market leader. Having a high calibre a reality. include, wearing proper personal protective
workforce on shore and a qualified crew equipment (PPE) onboard, frequent
onboard are the factors that are critical Nick also observed that many of the supervision and guidance by the Shipboard
for success. BW LPG understands this well seafarers while at work demonstrate Management Team on safe work practices,
and recruits and retains high performing BW LPG’s values such as delivering on daily morning safety meetings and tool
individuals who contribute positively to promises, acting for the future, embracing box meetings, and safety drills to prepare
the organisation. continual improvement and creating seafarers for any challenges.
positive energy through collaboration.
As BW Group’s internal provider of There is little doubt that their hard work Nick observed, “Seafarers were well
ship management services, BW Fleet has paved the way for much of BW LPG’s familiarised with the safety measures,
Management ensures that all vessels outstanding performance in recent times. invariably safety conscious, and seniorWorld Horizon Issue 02/2015 Global BW 27
“My voyages on BW vessels such as
this one happen to be very similar to
my learning experience at BW LPG.”
crew members demonstrated sound successfully rolled out with high clarity.” Nick reflects, “My voyages on BW
levels of safety leadership.” BW Fleet vessels such as this one happen to be
Management’s “Zero Harm” initiative has Multiple measures have been adopted to very similar to my learning experience
reinforced the importance of safety by improve the way energy is used on our at BW LPG.” Nick’s learning experience
creating awareness and rolling out training vessels. These include physical changes has been wide and has ranged from
and leadership programmes within the to the propeller, new paint technology, understanding the vessels, seafarers and
organisation. These additional measures engine tuning, autopilot and optimising the risks and conditions they face at sea,
will go a long way towards maintaining a usage of machinery onboard vessels. to understanding the risks and dynamics
safety conscious culture within BW LPG. Vessel optimisation tables devised by DNV present in the LPG market.
enable vessels to select ideal trims for
Energy management programme each ship condition in order to achieve the Since listing on the Oslo Stock Exchange
One of BW’s core values is to “act for the best fuel efficiencies and weather routing in November 2013, there has been a
future” and our energy management utilises weather prognosis and avoidance strong focus internally to build market
initiative demonstrates a strong of storm patterns along the passage to knowledge which has proven to be
commitment towards taking measures to determine ideal courses to steer. Speeds critical to gain a keen understanding of
reduce fuel consumption and emissions achieved at each leg of the route are fine- the LPG marketplace. Nick acknowledges
for the protection of the environment. BW tuned depending upon a justified time of that we have reaped substantial
Princess was one of the vessels used to arrival at the vessel’s destination. rewards from this repository of market
test the energy management programme knowledge which include “enjoying the
so all crew onboard have benefited from There has been a reduction in average outstanding operational and financial
first-hand experience. Crew members fuel consumption below baseline for performances since listing and becoming
are also made aware of such initiatives VLGCs by 6.3%, thanks to these energy the market leader in the provision of LPG
and there is a concerted effort to build a saving initiatives. Nick says, “Ultimately, logistics solutions.”
positive culture around energy efficiency. having the right processes and the right
Nick says, “The captain of the vessel mindset is important to achieving the
acknowledged that the programme was targets set out in the program.”28 BW Group Fleet World Horizon Issue 02/2015
BW Group Fleet: 156 vessels
As of 24 July 2015
Very Large Gas Carriers Large Gas Carriers LNG Carriers
No. of vessels: 35 No. of vessels: 5 No. of vessels: 15
Year of construction: 1990-2015 Year of construction: 1991-2003 Year of construction: 1984-2015
Average age: 7.9 Average age: 18.2 Average age: 7.4
Cargo carrying capacity: 78,000-84,000 CBM Cargo carrying capacity: 58,050 CBM Cargo carrying capacity: 125,200-162,500 CBM
Areas of operation: Worldwide Areas of operation: Worldwide Areas of operation: Worldwide
Very Large Crude Carriers Long Range 1 Product Medium Range Product
Tankers (LR1) Tankers (MR)
No. of vessels: 10 No. of vessels: 17 No. of vessels: 13
Year of construction: 2000-2012 Year of construction: 2004-2010 Year of construction: 2013-2015
Average age: 10.4 Average age: 7.8 Average age: 0.7
Cargo carrying capacity: 298,600-320,000 DWT Cargo carrying capacity: 72,800-76,600 DWT Cargo carrying capacity: 49,999 DWT
Areas of operation: Worldwide Areas of operation: Worldwide Areas of operation: Worldwide
Offshore Fleet Chemical Tankers Newbuildings
No. of vessels: 17 No. of vessels: 4 Very Large Gas Carriers: 8
Year of construction: 2002-2012 Year of construction: 1997-2010 Floating Storage & Regasification Unit: 1
Areas of operation: North and South Average age: 11.8 Liquified Natural Gas Carriers: 5
America, Europe, Asia Pacific, Africa Cargo carrying capacity: 19,400-22,000 CBM MR Tankers: 9
Areas of operation: Worldwide Chemical Tankers: 11
LR1 Tankers: 6
Total: 40World Horizon Issue 02/2015 Around the World 29
Around
the World
Androsch, former Austrian Vice 3.
Chancellor and an entrepreneur Row, row, row your boats
in Shanghai and Christoph Leitl, On 23 April, 32 rowers took
Chairman of the Austrian Federal part in Mission Row Around
Chamber of Commerce. Present Singapore Island 2015 to raise
at the Rosthorn-Medeville over S$600,000 for the Mission
ceremony were Mr Karlheinz to Seafarers charity, which helps
Kopf (the Second President of sailors who face loneliness and
Parliament) and Zhang Shi, the personal problems while at sea.
Chinese Ambassador to Austria. SVP (Corporate Services) and
1. General Counsel Nicholas Fell
Rosthorn-Medeville ceremony 2. was amongst the rowers who
On 25 February at the Austrian Running mates battled through waves, heat
parliament house, BW’s former BW Maritime fielded 28 runners and even an electrical storm for
chairman Dr Helmut Sohmen to the 12th annual J.P. Morgan this worthwhile initiative. The
presented the Rosthorn Medal Corporate Challenge. Held on circumnavigation of 140km by
(an Austro-Chinese Friendship 23 April, BW was one of 297 the rowers of two Cornish gigs
Association accolade) to Y S Liu, companies that participated in was achieved in 23 hours 15
Vice-Chair of the Hong Kong this annual corporate charity minutes. Nearly all participants
Philharmonic Orchestra; Austrian race, which involved running had a connection with shipping
Federal Minister for Education, enthusiasts circumnavigating a – be it in insurance, P&I Clubs,
Arts and Culture, Mrs. Gabriele 5.6km perimeter of the Central maritime lawyers, charterers and
Heinisch-Hosek; Messrs Hannes Business District of Singapore. technical personnel.
1 2
330 Around the World World Horizon Issue 02/2015
4. 5. 6. 7.
Houston, we have an OTC Party people Signed and sealed The Goss on Pete
BW Offshore participated in The Commercial and Operations BW has been building on its In conjunction with Maritime
the 2015 Offshore Technology team organised a casual get- presence in stainless steel Week and Mission RASI (Row
Conference (OTC) in Houston in together for customers and chemical tankers since the Around Singapore Island), BW
May. The company was among business associates to thank late 2000s. On 16 March, the invited British yachting legend,
the 2,300 exhibitors at the NRG them for their continued support Group recently enhanced its Pete Goss MBE (pictured,
Park in Houston, Texas. Insightful for and partnership with BW. service offering in this segment second from left), to share his
panels, in-depth executive More than 100 guests from with another newbuilding experience at sea with staff in
keynotes and a new crop of Trafigura, BP, Shell, TOTAL, contract signed with Fukuoka the Singapore office. A holder
“Spotlight on New Technology” Petrobras and ENOC were Shipbuildling. The addition of the Legion d’Honneur, which
award winners dominated this present. The merrymaking took follows an en-bloc acquisition was bestowed on him for his
record-setting exhibition, which place at the urbane Black Swan, of a fleet from Stream Tankers, act of bravery and seamanship
saw 100,000 attendees from located at The Quadrant. In this bringing the Group’s chemical (he saved the life of a fellow
130 countries. Chief Business photograph (from left to right) tankers count to 15. The two- competitor during the 1996
Development Officer Claude are Siddharta Sarkare (BW), 22,000 DWT Fukuoka newbuilds Vendee Globe), Mr Goss spoke
Rouxel (left) is seen here Captain Rishab Bahl (Vitol/ are slated to be delivered in inspirationally on the importance
with Stuart Bannerman, Chief Mansel), Doris Oh (BP), Captain 2018 complete with eco-design of team work and committing to
Operations Officer. Rajeev Kumar (BP), Melanie hulls and fuel-efficient engines. what one sets out to do in order
Lew (BW), Yoganda Siva to succeed.
(BP), Jatinder Bhoai (BW) and
Pintukumar Shah (BW).
4 5
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