Increased cooperating with suppliers is part of Det norske oljeselskap's strategy to become the benchmark independent oil company.

“In order to be successful in a highly competitive market, we need more trust and cooperation, stronger alliances and more risk/profit-sharing. That will reduce cost and increase output”, says Karl Johnny Hersvik, CEO at Det norske.

At the Energy Outlook conference in Arendal Tuesday, Hersvik told the story about a casing supplier with the catchy slogan “We care about casing, so you don’t have to”. At one point the supplier called Hersvik to ask who was responsible for casing at Det norske.

Hersvik calmly answered: “You are!”

“I then sent him a photo of his own slogan. I mean, if our supplier is an expert on casing, why should we have our own expert”, says Hersvik.

The story serves as an example of how Det norske, by building alliances with suppliers, could become an industry reference for project excellence.

Inspired by Toyota’s lean program, Det norske also aims to improve quality, eliminate waste, reduce leadtime and reduce total costs.

“Our goal is to sanction new stand-alone projects at break-even prices below USD 40 per barrel. That is well within reach. We also look to reduce engineering hours per ton produced platform by 50 percent and cut total execution time by 25 percent”, says Hersvik.

February 24th 2021

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