Siem Offshore

Source: Energy Digital

Date :17/03/2008 15:19:16

Exec looks at the progress Norwegian company Siem Offshore has made as a supplier of marine services to the oil & gas industry

Written by Lucy Mowatt and produced by Alex Smith

Established in July 2005 as an independent business, Siem Offshore Inc was a company divested from Subsea 7 in a restructuring process. Traded under the ticker SIOFF, the company can be found on the Oslo Stock Exchange. Over 33 percent of its shares are held by Siem Industries Inc., a holding company with its main focus on the oil & gas industry.

Kristian Siem is the Chairman of the Board at Siem Offshore, as well as Siem Industries Inc., Subsea 7 Inc., Star Reefers Inc., Siem Industrikapital AB and also sits of the board of directors of other companies. He has been a director with Siem Industries since 1982 and brings his experience in the industry to Siem Offshore.

Starting out with only ten support boats in Brazil, part ownership of a drilling vessel, one well stimulation vessel, and six platform supply vessels under construction, Siem Offshore has expanded rapidly and it now has a fleet of 40 vessels, with 17 under construction.

Vessel portfolio

These vessels are owned and operated by Siem Offshore, offering services to the offshore oil and gas industry. Currently operating seven Platform Support Vessels (PSVs), the company also has three additional PSVs under construction, meaning that the company will be well placed to offer increasing supply and cargo functions to the oil & gas sector in future.

It also has ten Anchor Handling Tug Supply Vessels, of VS 491 CD design, which are capable of towing and product handling, as well as offering supply and support work to the industry. This is joined by five multifunction ROV support vessels (MRSV), which not only carry out ROV handling activities but can also be used for construction projects and cargo services.

The fleet now also includes the JOIDES (Joint Oceanographic Institutions Deep Earth Sampler) Resolution, which is a scientific drilling ship, owned by the company Overseas Drilling Limited, in which Siem owns a 50 percent share. It also holds a 50 percent share in the well stimulation vessel, Big Orange XVII, which has good handling, control and stability.

14 new vessels are on order until 2010 too, which will significantly increase the levels of business the company takes on, ensuring that there are larger numbers of ships available.

Acquisitive growth

Acquisitions have played a major role in the development of this company, which has significantly contributed to the expansion of Siem Offshore. Its first acquisition came in September 2005, just two months after it was established; Rovde Shipping AS (a Norwegian company) was a company renowned for its chartering, crew and technical services to the industry, which gave Siem Offshore added expertise and the capacity to take on more projects.

This has been followed by Siem Offshore becoming a 60 percent shareholder in the company Well Intervention Solutions AS, which then took on the name Siem WIS AS. This company, which develops technology for the oil & gas industry, allows customers to receive a complete service from Siem, from shipping to service and equipment. Its solutions include add on components and improvements on existing technologies within for oil well drilling.

Its RCIV (Remote Controlled Intervention Valve) for example, reduces both the amount of equipment required for riserless well intervention and maintenance as well as reducing the amount of time taken on these intervention projects, meaning that customers will see substantial cost savings.

Siem Offshore also has a subsidiary in Brazil, called Siem Consub SA, which operates 15 vessels. With more than 20 years experience in Brazil, the company offers offshore support, submarine cable installations and the development of engineering systems, expanding Siem’s global customer base further.

Experienced workforce

At the end of 2007 approximately 600 people were employed by Siem Offshore, a number that is likely to increase as the company pursues its strategy of organic growth and developing its presence in the market. As the number of vessels on order to the company increases over the period 2007-2010 the company website confirms that Siem Offshore will be looking for more staff to cope with demand.

The company’s senior management team all have extensive experience within the shipping industry. CEO, Terje Sørensen, for example, worked for the previous Siem Offshore, when it was part of Subsea 7, as CFO and has held previous roles, both within the shipping and the petroleum extraction industries. The COO, CFO and Chartering Manager similarly have backgrounds in these industries so that the company has a thorough understanding of the business and its customers’ needs.

Siem Offshore is looking to continue to grow in the future, and with an increasing portfolio of vessels available for various projects in the offshore industry, alongside the expertise of its subsidiaries, the company is on track to achieve its goals.

Click here to view the corporate brochure on Siem Offshore