“Aftermarket sounds like spare parts and simple maintenance, but it is really about major upgrades, comprehensive modernization, and the building of more effective systems. This makes the aftermarket interesting,” said Pål Skogerbø, Chief Technology Officer at HMH.
His remarks fell during a panel debate at the GCE NODE Executive Forum in Kristiansand Thursday evening, where Skogerbø, Rune Johnsen (Managing Director at NOV Norway) and Anstein Jorud (Managing Director at SLB, Kristiansand) were placed in the hot seats.
For years, the Agder region was the global center for offshore drilling packages, led by HMH, NOV and SLB. Newbuilds were plenty and the global market share of the three players in Kristiansand was estimated to 80 – or even 90 – per cent.
In recent years, newbuild activity has been close to non-existent, while aftermarket services have dominated. “Is this the new normal,” asked Knut Mjåland, CEO of GCE NODE.
“Day rates remain too low to justify newbuilds, but upgrades are increasing and will continue to be essential,” said Rune Johnsen.
Anstein Jorud added that optimization and efficiency improvements will define the next phase, making aftermarket work even more important.
Skogerbø pointed out that many rigs are aging and will require major upgrades to stay competitive.
“This makes the aftermarket an exciting and long term industry, driven by the need for smarter, more efficient solutions,” said Skogerbø.
When asked about the near future for the major companies, and the SMEs that are part of their value chain, Johnsen highlighted that Kristiansand remains strongly drilling oriented, while NOV globally also operates in segments with different cycles.
“We see strong growth in other regions which will drive future drilling activity. It will, however, take some time before it trickles down to our region,” said Johnsen.
GEO-POLITICS
The GCE NODE Executive Forum – by invitation only – gathered close to 90 executives in Kristiansand. Highlighting the current geo-political situation, the theme of the forum was “Turbulence”.
EU-expert Anne Elizabeth Stie from the University of Agder and Kai Eide, a former top diplomat, took the stage to provide insights and possible paths forward for the world.
