Odfjell Technology celebrates 50 years in business.
Alexandru Gomoescu – Vice President Well Services (CESEE) at Odfjell Technology, highlights the milestones of the company’s remarkable journey, spanning half a century of groundbreaking innovation, alongside a decade of impactful presence in Romania.
Established in 1973, Odfjell Drilling was the first Norwegian drilling contractor. Over the years, Odfjell Drilling evolved to include Well Services, Platform Drilling and Engineering in the group portfolio. In March 2022, Odfjell Drilling separated the mobile offshore drilling rig business from the other divisions and created a new company called Odfjell Technology.
Dear Alexandru Gomoescu, you have more than 15 years of experience in the Oil & Gas/Energy sector, managing Operations, Sales, Procurement… How do you see the Romanian and regional O & G/energy markets currently?
Alexandru Gomoescu: Romania was once a large Oil & Gas producer, and it still holds a good place in the region.
The Black Sea offshore market which sadly have sat almost on hold for the last years has positively changed. Neptune Deep project is defiantly in the spotlight for a while, as the most significant deepwater gas field development project in the Black Sea – set to bring around 100bcm of natural gas in the region. We are all happy to see the progress and the key milestones for setting our country towards the largest natural gas producers in the region.
Odfjell Technology is currently actively working for being part of the project, seeking for our contribution to the region’s energy security and transition.
For the last eleven years you have worked with Odfjell Technology – a period of continuous innovation. Speaking of the 50 years business anniversary of the company, what milestones has Odfjell Technology crossed over these years?
Alexandru Gomoescu: Since its inception, Odfjell Technology has been a beacon of innovation, continuously pushing boundaries and setting new industry standards. Here are milestones that have shaped this pioneering company over the years.
1973: Odfjell Drilling & Consulting Company AS was formally established. This move laid the foundation for a company that would go on to make waves in the drilling and consulting sector.
1975: Always forward-thinking, Odfjell Drilling started offering Drilling Tools rental services, an essential part of the offshore drilling ecosystem.
1982: The casing running business was established, demonstrating the company’s commitment to providing comprehensive drilling solutions.
1990: The company expanded its horizons by establishing a presence in the Middle East with the Well Services department within Odfjell Drilling. This strategic move opened up new opportunities and markets.
2010: This decade marked a period of remarkable growth and expansion. Odfjell Drilling gained a firm foothold in the Middle East through the acquisition of Ntera Ltd. They also diversified their services, offering fishing services and wellbore clean-up. Geographical expansion across the Middle East, Europe, and Asia solidified their global presence.
2012: In the year 2012, Odfjell Drilling made a significant expansion by establishing its offices in Romania. This strategic move was driven by the company’s commitment to cater to the dynamic needs of the well services sector and the oil and gas industry.
2020: In a bold and forward-thinking move, Odfjell entered the mobile offshore wind market by acquiring Oceanwind and establishing Odfjell Oceanwind AS. This signalled their commitment to sustainable energy solutions.
2022: A significant corporate restructuring occurred as Odfjell Drilling Ltd. spun off the Well Services, Operations, and Engineering segments, forming Odfjell Technology. This newly formed entity was listed on the Oslo Stock Exchange, marking a new chapter in the company’s history.
2023: The journey continues as Odfjell Technology ventures into new territories, establishing operations and entities in Namibia and Canada. Their sights are set on new geographic targets, including the USA, Mexico, Brazil, Suriname, and Guyana.
In a world where innovation and adaptability are paramount, Odfjell Technology stands as a testament to the power of visionary leadership and unwavering commitment to excellence. As they continue to explore new horizons, we can only anticipate more pioneering achievements from this remarkable company in the years to come.
What was the impact of the company’s presence in Romania so far?
Alexandru Gomoescu: Odfjell Technology is a people company that combines 5 decades of experience with the technology of tomorrow. The company has been operating in the region though Well Services division for more than 10 years. We choose Romania as our regional hub, a country with a rich tradition in oil and gas and significant energy resources both onshore and offshore.
Well Services division continued developing new technologies adapted to the local requirements and scopes, while TRS division was recognized as ‘front runner’. The company delivers the safest and most efficient services for our regional clients with high focus on remotely operated technologies and QHSSE – central to everything we do.
Groundbreaking innovation requires leadership competencies and an innovative business development strategy. Which are the company’s plans with regard to this issue for the upcoming years?
Alexandru Gomoescu: Achieving groundbreaking innovation necessitates leadership skills and an inventive approach to business development.
Odfjell Technology has outlined its forthcoming strategies in this context, which encompass:
- Advancing international growth in Well services.
- Broadening the scope of new offerings.
- Scaling up the number of contracts in all BA’s.
- Strengthening sales and marketing capabilities.
- Strategically positioning itself for the energy transition.
The recent years have witnessed Odfjell Technology’s embrace of innovative and future-oriented ventures. What are some examples of investing sustainable strategies?
Alexandru Gomoescu: In recent years, Odfjell Technology has indeed demonstrated a commitment to innovative and future-oriented ventures, particularly in sustainable strategies. Here are some examples:
- Mobile Offshore Wind: Odfjell’s acquisition and the establishment of Odfjell Oceanwind AS in 2020 showcases their investment in the mobile offshore wind market. This move is aligned with sustainable energy initiatives, contributing to the growth of renewable energy sources.
- Energy Transition Positioning: Odfjell Technology’s strategic positioning for the energy transition reflects a forward-thinking approach. We are investing in green technologies and solutions that support the shift to cleaner and more sustainable energy sources, such as offshore wind and geothermal energy.
- Plug and Abandonment (P & A) Services: The expansion of our P & A offerings signifies a commitment to responsible decommissioning and environmental stewardship. Proper P & A procedures are essential for minimizing the environmental impact of onshore/offshore operations.
- International Growth in Well Services: Investing in the international expansion of Well services can include efforts to improve well efficiency and reduce environmental impact, aligning with sustainability goals in the oil and gas industry.
These initiatives demonstrate Odfjell Technology’s dedication to sustainability and their willingness to invest in strategies that not only align with global environmental goals but also position them as leaders in the evolving energy landscape.
What do you consider to be the major stimulators in your field of activity?
Alexandru Gomoescu: The ever-increasing global demand for energy, including oil and gas, serves as a major stimulator for Odfjell Technology. As long as the world relies on hydrocarbons for energy, the need for offshore drilling and related services will persist.
The advancement of drilling technologies and equipment is a significant stimulator. Odfjell Technology benefits from innovations that improve efficiency, safety, and environmental sustainability in offshore operations.
The global shift toward renewable energy sources, such as offshore wind and geothermal energy, presents new opportunities for Odfjell Technology. Their active entry into the mobile offshore wind market through Oceanwind acquisition and expansion of P & A Services positions them to be a part of the green energy transition.
Stringent environmental regulations and industry standards drive the development and adoption of cleaner and more sustainable drilling practices. Odfjell Technology’s commitment to responsible operations aligns with these regulations.
What about the impediments hampering growth?
Alexandru Gomoescu: Fluctuations in oil prices can impact exploration and drilling activities, affecting the demand for offshore services. Lower oil prices can lead to reduced exploration budgets and project delays. Growing environmental concerns, including the impact of offshore drilling on marine ecosystems and climate change, can lead to regulatory hurdles and public opposition. These factors may limit drilling opportunities in sensitive areas.
Economic downturns, like recessions, pandemics, or global financial crises, can reduce investment in offshore projects and exploration, affecting Odfjell Technology’s business prospects. Political instability, trade disputes, and international conflicts in regions where Odfjell operates can pose significant risks to their operations and growth plans.
While technological advancements stimulate growth, they can also present challenges in terms of the high costs associated with adopting and maintaining cutting-edge equipment and practices. The drilling operations, engineering, and well services industry is highly competitive. Odfjell Technology faces competition from both established players and new entrants, which can affect market share and pricing.
Meeting evolving regulatory requirements, particularly those related to safety and environmental standards, can be resource-intensive and may pose impediments to growth.
Odfjell Technology operates in a dynamic and evolving industry, where adaptability and innovation are critical to navigating both stimulators and impediments. Success in this field depends on their ability to capitalize on growth opportunities while effectively addressing challenges and risks.
How does Odfjell Technology support energy transition? How important is Green Technology for your company?
- Odfjell Technology actively supports the energy transition by diversifying into renewable energy markets, embracing sustainable practices, investing in green technology, expanding into regions with renewable energy potential, and forming strategic partnerships. Green technology is of paramount importance to Odfjell Technology as it not only enhances their competitiveness but also aligns with global efforts to reduce carbon emissions, mitigate climate change, and transition to a more sustainable and environmentally responsible energy future. By integrating green technology into our operations, Odfjell Technology positions itself as a forward-thinking industry leader and contributes to the broader goal of a greener and more sustainable energy landscape.
- Green technology plays a critical role in Odfjell Technology’s efforts to support the energy transition. We actively invest in and adopt cutting-edge technologies and equipment that enhance energy efficiency and environmental sustainability in offshore operations. These innovations not only improve their own operational efficiency but also contribute to reducing greenhouse gas emissions and environmental damage associated with offshore drilling. Our energy optimisation, system integration, and green technology specialists allow us to perform asset-based services and identify cost-effective measures to optimise operations and reduce environmental footprint.
→Throughout the year, our Green Technology division has experienced notable growth, primarily driven by our Combined Energy Management (CEM) Screening service. This unique service assists clients in achieving their emission reduction goals on all kinds of offshore and maritime assets. Our specialists in energy optimisation, extract and analyse the asset’s energy consumption and establish a baseline. Next, by assessing findings vs. the available proven technologies, the cost-effective solutions will be recommended to asset owners for the purpose of reducing emissions and fuel consumption.
→Within our Technical Integrity Management area, our experience database includes data from more than 600 operational years of Mobile Offshore Units in a harsh environment. The data is used for validation and improved prediction of failure potential of structural, drilling equipment and pressurised integrity. The improved predictions provide large cost savings and ensure at all times technical integrity of the assets. Utilisation in this area is high, and we expect this to continue to grow.
- Odfjell Technology places a strong emphasis on responsible and sustainable practices in its operations. This includes adherence to stringent environmental regulations and industry standards aimed at reducing the environmental impact of offshore drilling and related services. By implementing cleaner and more sustainable drilling techniques, we contribute to minimizing the industry’s carbon footprint and environmental harm.
- There is a great opportunity to use our heritage and expertise in each of our disciplines to support the energy transition. We look forward to expanding our resource base with new talent, who can be part of a team working on solutions to aid in the development of cleaner energy and help secure the energy supply for generations to come.
- Collaborations and partnerships with companies and organizations involved in green energy projects further illustrate Odfjell Technology’s support for the energy transition. These partnerships allow us to leverage our expertise in offshore operations to contribute to the success of renewable energy ventures.
After five decades of experience operating worldwide, serving both offshore and onshore markets, what kind of business model does Odfjell Technology promote?
Alexandru Gomoescu: Our business model embraces diversification across various energy sectors. While we have a strong foundation in offshore drilling operations, engineering, and well services, we have also expanded into renewable energy markets, such as mobile offshore wind, through the acquisition of Oceanwind, and the expansion of our P & A offerings which taps the geothermal markets. This diversification allows us to adapt to changing market dynamics and positions Odfjell Technology to take advantage of opportunities in both traditional and emerging energy sectors.
With five decades of experience and a global footprint, Odfjell Technology emphasizes the importance of a global presence. Their business model involves expanding into new geographic regions, as evidenced by their moves into Namibia, Canada, the USA, Mexico, Brazil, Suriname, and Guyana. This expansion strategy enables them to tap into emerging markets and regions with untapped energy resources.
Collaboration and partnerships with other industry players, energy companies, and organizations involved in various energy projects are integral to Odfjell Technology’s business model. These partnerships enable us to leverage our expertise and resources to contribute to the success of diverse energy ventures, from traditional offshore drilling to renewable energy projects.
Odfjell Technology promotes a diversified, global, and sustainable business model that leverages our five decades of experience and expertise in offshore and onshore markets. Our commitment to innovation, sustainability, and adaptability positions us as a versatile and forward-thinking company capable of thriving in a dynamic energy industry.
What would be the top priorities for Odfjell Technology during the coming period? Where would you see the best opportunity for your company in the energy sector for the next, let’s say, 10 years?
Alexandru Gomoescu: Prioritizing technological advancements in drilling operations and well services is paramount. The upsurge in rig activity and augmented exploration and production (E & P) expenditure opens doors to growth across all our service offerings. Anticipated global expenditures on drilling tools and services indicate a sustained upward trend in the years ahead. This trend aligns with the continuous expansion of operational rigs and drilling operations worldwide.
- We will continue to invest in green technology, implement energy-efficient processes, and adopt sustainable drilling techniques to align with stringent environmental regulations and industry standards.
- Expanding into new geographic regions with untapped energy resources or emerging markets for offshore services could provide significant growth opportunities. Assessing regions with favourable regulatory environments and resource potential would be essential.
- Collaboration and partnerships with industry players, energy companies, and renewable energy project developers should continue to be a focus. Such partnerships can lead to joint ventures and opportunities to participate in large-scale energy projects.
- Prioritizing the recruitment and development of a skilled workforce in the energy sector is crucial. Investing in employee training and development programs can ensure the company has the expertise needed to excel in diverse energy markets.
- Maintaining adaptability and resilience in the face of market fluctuations and uncertainties should always be a priority. Being ready to pivot and embrace new opportunities as the energy landscape evolves is vital for long-term success.
- Keeping abreast of evolving regulatory requirements, particularly those related to safety and environmental standards, is essential. Ensuring compliance with these regulations and advocating for responsible industry practices is critical.
Odfjell Technology’s ability to capitalize on these opportunities will depend on its ability to adapt, innovate, and strategically position itself in the evolving energy landscape while maintaining a commitment to sustainability and responsible practices.
Do you think clean energy can fuel the future and make the world healthier? Will the development of cleaner energy help secure the energy supply for generations to come?
Alexandru Gomoescu: Clean energy has the potential to fuel the future and contribute to a healthier world by reducing emissions, improving air quality, and promoting sustainability.
Continued development and deployment of clean energy technologies can lead to breakthroughs in energy efficiency, energy storage, and grid integration. These advancements can further enhance the reliability and affordability of clean energy sources.
Ensuring a reliable energy supply for future generations necessitates a comprehensive strategy encompassing energy efficiency initiatives, responsible resource stewardship, and a resolute dedication to emissions reduction. The transition to cleaner energy plays a pivotal role within this expansive strategy, fostering the creation of a more sustainable and equitable energy environment.