This document analyzes the competitiveness of the Norwegian FPSO (floating production, storage, and offloading) industry. It finds that the industry faces challenges including a lack of competitive scale, keeping key activities in Norway, and future access to qualified labor. It provides recommendations for both the industry and government. For the industry, it recommends consolidation to increase size and establishing a cluster initiative. For the government, it recommends securing long-term policy stability, opening oil and gas activity in northern regions, and investing in cluster-related knowledge. The overall goal is for the FPSO cluster to strengthen and prove competitive for the future.
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The Norwegian FPSO Cluster
1. GRA 6829 Strategy for Industrial Competitiveness 2010 The cluster characteristics and competitiveness of the Norwegian FPSO industry - Competitive for the future?TorleivOpsalNicolai A. Kirkeng1
2. IntroductionCluster and national competitivenessRecommendationsWhat is an FPSOThe emergence and current position of the industryAgendaGRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsalIntroductionWhat is an FPSOThe emergence and current position of the industryCluster and national competitivenessNational diamond analysisChallenges for the clusterRecommendationsFor the industryFor the government 22
3. IntroductionCluster and national competitivenessRecommendationsWhat is an FPSOThe emergence and current position of the industryWhat is an FPSOFloating Production, Storage and Offloading unitGRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal3Turret and fluid/control transfer swivelProcess and utilities e.g. separation train, gas compression, power generationAccommodation, central control and helideckHull & marine utilities e.g. cargo, ballast,boilers, propulsionMoorings and risers3
4. IntroductionCluster and national competitivenessRecommendationsWhat is an FPSOThe emergence and current position of the industryIn the intersection of shipping and offshoreEmerged from two traditionally strong industriesUnique international position10 of 28 international actors are NorwegianNo other country has similar agglomerationMore national than regional agglomeration4GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal4
5. IntroductionCluster and national competitivenessRecommendationsWhat is an FPSOThe emergence and current position of the industryThe industry is spread around the countryTrondheim: R&D
10. Ship Equipment5GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
11. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterThe national diamondFirm strategy, structure and rivalryFactor conditionsDemand conditionsRelated and supporting industries6GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
12. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterThe national diamondFirm strategy, structure and rivalryFactor conditionsDemand conditionsSpecialized skills
14. Marintek and NODE Related and supporting industries7GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
15. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterThe national diamondFirm strategy, structure and rivalryFactor conditionsDemand conditionsSpecialized skills
20. Strict regulatory frameworkRelated and supporting industries8GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
21. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterThe national diamondFirm strategy, structure and rivalryFactor conditionsDemand conditionsSpecialized skills
29. Ship equipment9GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
30. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterThe national diamondFirm strategy, structure and rivalryNumerous actors
40. Ship equipment10GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
41. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterThe national diamondFirm strategy, structure and rivalryNumerous actors
52. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterChallengesLack of competitive scaleKeeping the right activities in NorwayFuture access to qualified laborFPSO projects are risky – smaller actors lack sufficient financial strength
58. Workers with operational experience12GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
59. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterChallengesLack of competitive scaleKeeping the right activities in NorwayFuture access to qualified laborFPSO projects are risky – smaller actors lack sufficient financial strength
65. Workers with operational experience13GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
66. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterChallengesLack of competitive scaleKeeping the right activities in NorwayFuture access to qualified laborFPSO projects are risky – smaller actors lack sufficient financial strength
72. Workers with operational experience14GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
73. IntroductionCluster and national competitivenessRecommendationsNational diamond analysisChallenges for the clusterChallenges (2)Political instabilityDecreasing activity on the Norwegian continental shelfChanging policies
77. Activity push innovation and new technology15GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
78. IntroductionCluster and national competitivenessRecommendationsFor the industryFor the governmentIndustry recommendationsA strengthened and competitive Norwegian FPSO cluster – With a bright futureChallengesLack of competitive sizeKeeping key activitiesFuture access to laborPolitical instabilityDecreased activity in the home market16GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
79. IntroductionCluster and national competitivenessRecommendationsFor the industryFor the governmentIndustry recommendationsA strengthened and competitive Norwegian FPSO cluster – With a bright futureIndustry consolidationChallenges Increase size & financial strength
81. Still maintain cluster dynamicsLack of competitive sizeKeeping key activitiesEstablish a cluster initiativeFuture access to labor Cluster promotion
83. Cooperate with government, universities and industry actorsPolitical instabilityDecreased activity in the home market17GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
84. IntroductionCluster and national competitivenessRecommendationsFor the industryFor the governmentGovernmentalrecommendationsA strengthened and competitive Norwegian FPSO cluster – With a bright futureSecure long term policy stabilityChallenges Consensus driven decisions
85. Cooperation with the industryLack of competitive sizeOpen oil & gas activity in the NorthKeeping key activities Activity crucial to innovativeness
86. Recent report degrading environmental hazardFuture access to laborInvest in cluster related knowledgePolitical instability Strengthen scientific infrastructure
87. Joint effort from the government, industry and universitiesDecreased activity in the home market18GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal
88. IntroductionCluster and national competitivenessRecommendationsFor the industryFor the governmentConclusion19GRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal19
89. IntroductionCluster and national competitivenessRecommendationsFor the industryFor the governmentGRA 6829 Strategy for Industrial Competitiveness 2010 | Nicolai A. Kirkeng & TorleivOpsal20ConclusionBy implementing the suggested recommendations the FPSO cluster might develop into a stronger FPSO hub for the future and prove to be an important industry in the exciting intersection of the oil & gas, offshore and shipping industry.20