02 2005

Energy deepthinker

Also inside:> Making Singapore a Maritime Centre

> System certification at BMW> Ormen Lange – breaking new ground

DNV Forum

World Petroleum Council President

01 Editorial

02 Energy deep thinker

06 Building a stronger Singapore

10 Nothing more than intelligent staff management

14 Breaking new ground

18 Right the first time

20 Considering environment equal to safety

24 Perfect timing for concrete sandwich

26 Providing risk status

28 Bottling the flavour of Argentina

32 News

36 Last word

content

06 10 24 28

Two areas of growing concern and complexity add to

the challenges: future field developments in Arctic

areas and aging installations. In both of these areas

DNV has a role to play.

ARCTIC AREAS

To meet the world’s increasing energy demand, oil

and gas must be produced in new geographical areas.

The industry is now heading into the Arctic. There the

oil companies will produce oil and gas under demand-

ing conditions, and they must do so safely.

How can the industry manage the risks involved in

this? What is necessary to succeed in these new areas?

DNV has long experience of technology qualification,

verification and certification related to the offshore

sector. Many of our offshore standards have become

reference standards for international engineering and

oil companies. Russian energy major Gazprom, in fact,

adopted our offshore standard as its corporate stan-

dard. The offshore standard has also been used, for

instance, for the Kizomba field off Angola and for

fields off the coast of Brazil.

We will continue developing existing and new

standards to be at the forefront when it comes to

technology for ensuring safe operations.

AGING INSTALLATIONS

While the oil companies are investing in new geo-

graphical areas, they also have to pay attention to

their existing installations. Many installations around

the world have exceeded their initially defined life-

times. Not all of these have been particularly well main-

tained over the years. Efforts are necessary to make

aging installations safe and as efficient as possible.

The technical standard of old facilities is becoming

a key issue for the industry. We are cooperating with

energy companies to raise the standard of their aging

installations, offering assistance ranging from asset

integrity management and support to due diligence

services.

The combination of our extensive technological know-

how and risk-based principles is helping the industry

to develop sound risk-management strategies and

appropriate measures to mitigate risk and ensure the

quality, safety and environmental performance of their

operations.

1DNV Forum 02 2005

MIKLOS KONKOLY-THEGE

President and Chief Executive Officer

A role to playThe oil and gas industry is facing increasing expectations from a multitude of

stakeholders. In the public domain, zero tolerance of failure is a reality. Consistent,

transparent and predictable operation is expected from this industry.

“The world needs more and more energy –

and we will produce it,” is the optimistic

message from Eivald M.Q. Røren. Hardly

anyone has a better overview of the energy

situation and energy developments in the

world today than the resigning president

of the World Petroleum Council and for-

mer Senior Executive Vice President of

DNV.

“We are facing major challenges and

threats which must be dealt with. Four bil-

lion people currently survive on less than

USD 2 per day. In addition, the world pop-

ulation will probably increase from around

6.5 billion today to just over 8 billion in

2030, i.e. by around 1 percent per year –

in OECD countries by around 0.4 percent

per year and in developing countries by

around 1.2 percent.

Based on this scenario, the developed

countries must considerably enhance their

energy efficiency. With the global economy

growing at the rate of just over 3 percent

per year, we can assume that the world’s

primary energy needs will rise from

around 11 000 million ton oil equivalents

(Mtoe) today to just over 16 000 Mtoe in

2030, representing a growth rate of 1.7

percent per year. This is greater than the

increase in population, but less than the

rate of growth in the economy. However,

it is a total growth of 45 percent, and oil

and gas will be central for many years,”

says Røren.

THE IMPOSSIBLE WILL BECOME POSSIBLE

“The world has sufficient fossil resources

to manage this,” he claims. These develop-

ments will require an oil production of

around 120 million barrels of oil a day in

2030, compared to 84 million barrels a day

at present. Environment-related issues may

alter these developments in the direction

of much greater transport efficiency, not

least in the USA, and the widespread intro-

duction of new fuels, such as hydrogen,

which must also to a large extent come

from natural gas.”

Røren is in no doubt that technology

will play a central role in our energy

future. The impossible will become possi-

ble, it only takes time.

“Just over USD 200 billion will be invested

each year in the oil and gas industry until

2030. Around 70 percent of this will be

spent on exploration and development,

while at least 5 percent will be spent on

pipelines and ships. LNG transport will

increase tremendously.”

INCREASED UTILISATION LEVEL The oil and

gas industry has supplied energy and prod-

ucts to help society develop for many years.

Technological developments will be crucial

to finding new reserves and utilising these

in an increasingly better way. Not only must

the production volume increase. The vol-

umes produced by existing fields, equiva-

lent to that produced in the North Sea

each year, must be replaced.

“Will the global society manage this?”

“The impossible will continue to be made

possible, both in upstream and down-

stream operations,” says Røren.

“Upstream, this will take place by increas-

ing the recovery rate, thus improving the

use made of resources originally in place.

Energy deep thinkerWorld Petroleum Council President Eivald M.Q. Røren is a firm believer that oil and gas

will play a central role in our energy future. TEXT > HARALD BRÅTHEN PHOTO > NINA EIRIN RANGØY

2 DNV Forum 02 2005

“We need energy – and we will find it”,

says WPC president Eivald M.Q. Røren.

It is not unrealistic to count on the recov-

ery rate being increased from 30 percent

(typical 25 years ago) to 60 percent. Better

methods for mapping and drilling will be

used. This will help to extend the period

during which we can find and develop oil

and gas.”

MARITIME TRANSPORT EVEN MORE

IMPORTANT In the downstream sector,

cleaner products and combustion will be

high on the agenda. The gathering and

storage of CO2 will be a key issue. A lot is

to be gained from getting more mileage

out of the fuel being used.

Very much will depend on safe logistics.

Increasing amounts of the oil and gas pro-

duced are being transported on ships. This

also means that some places, such as the

Straits of Hormuz (currently 15 million

barrels/day) and Malacca, are becoming

very busy. Currently 45 percent of all the

oil transported by sea passes through the

Straits of Hormuz. In 2030, this figure will

have increased to 66 percent. The tanker

fleet will have to be increased considerably

by 2030. This makes great demands on the

recruitment and training of new seafarers.

Waters will also be monitored far more

strictly than they are at present. This is

necessary to ensure safe transport.

GAS IS INCREASING THE MOST “To how

large an extent will new fuels take over?”

“The total for fossil energy will increase

from just over 80 percent to 82 percent,

with gas increasing the most during this

period. Nuclear power will increase slightly.

Regionally, it is the developing coun-

tries that will increase the most in total

consumption, from 38 percent to 48 per-

cent. It is worth noting that it is the trans-

port sector that uses most of the oil supply,

and its share will increase from around 50

percent at present to 60 percent in 2030.”

CHINA FASTEST GROWING CONSUMPTION

China is the country with the fastest grow-

ing consumption of oil and gas. Up to

2030, 21 percent of the increase in world

energy will be used to supply China. Coal

will still be the dominant energy carrier,

but oil, gas and nuclear power will all

increase. China will increasingly be a net

importer of oil. It currently produces

around 3.5 million barrels a day and

imports around 2.5 million barrels a day.

In 2030, it will import around 10 million

barrels a day, like the US does at present.

“We should expect the Chinese econo-

my to be around the size of the North

American economy in 2030,” says Røren.

“The Chinese transport sector will be

particularly in focus. There are currently

around 22 cars per 1,000 inhabitants in

China. This figure is expected to quadruple

by 2030, representing 130 million vehicles

compared to 220 million in the USA today.

This density will thus still be far less than in

Europe and the USA at present. The

demand for gas and nuclear power will be

particularly strong in the years to come.

China is currently the second-largest con-

tributor of energy-related CO2 emissions –

after the USA. The country will contribute

26 percent of the increase in CO2 emissions

by 2030. This is a worrying development for

the environment. We have learned that the

Earth’s atmosphere is not an infinite space

where we can throw all our “rubbish”. If we

are not to choke our own planet, we must

start using stronger means – including find-

ing better ways of dealing with CO2.”

ALWAYS POLITICAL CONFLICTS “How may

the world situation affect developments and

the stability of the energy supply?”

“Oil has always involved political conflicts.

We are mutually dependent, which is why

it’s important to balance the interests of

producers and consumers. The national

oil companies will gradually become man-

agers of large resources. The international

oil companies will have to strive to gain

4 DNV Forum 02 2005

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access to reserves. They may have to make

an increased commitment to alternative

energy forms, as several majors have done.

This is a question of time anyway.

Two-thirds of the world’s oil resources

are located in OPEC countries, especially

around the Persian Gulf. For gas, the pic-

ture is rather different, with Russia having

the largest reserves, followed by Iran.

Russia is an important oil producer, pro-

ducing around 8 million barrels of oil a

day (the second-largest net exporter in the

world). This production volume can prob-

ably be increased to 11 million barrels a

day in a few years’ time. However, Russia

is even more important as a gas producer.

It has around 32 percent of the world’s

proven reserves, while the Middle East has

40 percent. Russia mainly exports gas to

Europe, the USA, China, Japan and Korea.

This will increase considerably in the

future.

Nuclear power poses a special chal-

lenge. A few countries are continuing to

expand their nuclear power operations,

such as France, Finland, Russia, Japan and

China, while many others are reducing

theirs. In time, fusion energy may make an

impression, but that is a long way into the

future. However, I believe that nuclear

power may experience a renaissance once

it is recognised that other environmental

issues are more of a problem.”

THE OIL PRICE – AN INCENTIVE FOR

INVESTMENTS When we ask Røren to pre-

dict how the oil price will develop, he is

not as certain as he is about production

developments.

“Most people’s predictions about the

oil price will be wrong,” he says. “I think

it’s important to note that the spare

capacity in OPEC’s production has shrunk

considerably over the past few years. It’s

probably only Saudi Arabia that has any

significant amount, around 1.5 million

barrels a day, which can probably be

increased to 2.0 million barrels a day by

the end of 2005. However, we must

remember that the increase in annual

consumption is almost 2 million barrels a

day. Any failure in production somewhere

in the world immediately results in a very

difficult situation. Uncertainty regarding

reserves results in higher prices, as does

political unrest – as we have seen in Iraq.

The global balance is tight, and is reflect-

ed in price.

“A common code for classifying reserves

is necessary (United Nations Framework

Classification of Petroleum Resources), as

is transparent and consistent reporting.

The Norwegian reporting model is a good

example of this,” says Røren.

“Most of the oil that is to be produced

over the next 20 years will come from non-

OPEC countries. This oil must be found

and produced in increasingly difficult

areas. That costs money, which is why the

oil price must also provide incentives for

investments in exploration and develop-

ment and in extra capacity. I believe that

OPEC has demonstrated responsibility and

carried out a good job of balancing the

supply and demand situation. Nonetheless,

all the indications are that we will have to

relate to continued high oil and energy

prices.”

Eivald Røren is about to resign as the

11th President of the WPC. Now this 70-

year-old bundle of energy who loves skiing

and being outdoors is looking forward to

spending his days with his family and

friends. He is retiring after many years

of having the energy world at his feet.

5DNV Forum 02 2005

“In the future it is not unrealistic

to count on the recovery rate in oil

production being increased from

30 percent to 60 percent.”Eivald M.Q. Røren

6 DNV Forum 02 2005

7DNV Forum 02 2005

Building a strongerSingaporeSingapore is already a force to be reckoned with in the

maritime industry. The next step is to make Singapore

an International Maritime Centre. “To get there we need

more education, cooperation with the government, and

a set of support services,” says Teo Siong Seng, better

known as SS Teo, President of the Singapore Shipping

Association. TEXT > ANDERS ØVREBERG PHOTO > NINA EIRIN RANGØY

>

A man of many roles, SS Teo is President

of the SSA, chairman of Singapore

Maritime Foundation (SMF), as well as

managing director of the second largest

Singaporean shipping line, Pacific Inter-

national Lines. The three roles are related,

and he smilingly says, “I always have to

make sure I know which one I'm doing.”

DEVELOPING SINGAPORE Singapore is

already well established as a maritime

centre, but it wants to grow even further

to create an International Maritime Centre;

a hub for international shipping with large

pool of foreign shipowners.

“When people think of Singapore, they

often associate it with the ships, shipyards

and ports, but they don't think much on

the supporting services to the maritime

industry. I see Singapore developing into

an International Maritime Centre with a

complete set of supporting services, so that

Singapore becomes a ‘one stop shop’ for

international shipping; with lawyers, class

societies, ship finance, arbitrations and

many other areas of expertise creating

a maritime cluster,” says SS Teo.

The effort to create such a cluster, or

International Maritime Centre, was

launched two years ago. It was initiated by

the government, and is carried out by the

Maritime Port Authorities in co-operation

with the SMF.

MORE OPPORTUNITIES Asia shipping is set

to become even more international in the

years to come.

“The market will definitely grow. Of the

top ten container ports in the world, seven

are located in Asia. Of the top 20 contain-

er owners in the world, I believe 12 are

Asians. As Asia develops, more owners and

maritime related companies will set up

base here. At the same time we do see

emerging Asian players coming up to take

advantage of opportunities, from China,

India and South East Asia,” says SS Teo.

According to him, local operators wel-

come the competition.

“Most people appreciate that you need

a critical mass, a cluster, so that you can

create more opportunities. It brings more

business, and different disciplines and

expertise that complement what we have.”

And an International Maritime Centre is

something that will last, he claims.

“You can move a factory overnight to

Vietnam or to Indonesia, but once you

establish a centre, the experience and

knowledge that’s being build up cannot

easily be replaced or moved. London is

a good example. Even though they have

limited number of ship owners now, they

are still recognised as a maritime centre

because of the expertise they have avail-

able and have gathered over the years.”

A LARGE INDUSTRY The maritime industry

in Singapore employs close to 100.000 peo-

ple and contributes to about eight percent

of the GDP (Gross Domestic Product).

“I don’t think people realise how impor-

tant this industry is to Singapore, and it

will only continue to grow. A recent fore-

cast suggests that in less than ten years

time the industry would count 200.000

people, and account for 12 percent of the

GDP,” says SS Teo.

He believes that the industry is robust

and can withstand hardships. “Over the

last few years we went through Asian eco-

8 DNV Forum 02 2005

nomic crisis, the 2001 terrorist attacks, and

SARS, but in spite of all that the maritime

industry continued to grow. I think there is

a lot of room for growth, and that is a mes-

sage to the young people who are thinking

about their careers,” says SS Teo.

THE BEAUTY OF SINGAPORE Explaining

the competition, SS Teo lines up the cen-

tres in Asia that Singapore has to com-

pete with. Hong Kong, a well established

centre, has a large and respectable pool

of local and international ship owners,

and takes full advantage of the proximity

to China. Shanghai, up and coming, is

the maritime centre of the fastest grow-

ing economy in the world. He remains

undaunted.

“What Singapore has to offer is an over-

all proposition; we have our stable govern-

ment and is a transparent society. And the

beauty of Singapore is that it’s neutral

ground. We represent a good balance

between the east and the west. There is

also ease of communication here; not just

flight connections, but also IT. Singapore

is competitive,” says SS Teo.

He himself is an example of his east-meets-

west argument, having studied in Scotland.

In fact, one of the areas where Singapore

is making a push is within education, hav-

ing set up last year the first degree course

in maritime studies in Singapore. Soon a

degree in marine

engineering will also be available.

SAFETY AND THE ENVIRONMENT Within the

shipping industry, concerns for safety and

the environment are global. In Europe

and America, however, there has been

more pressure from the authorities

towards the industry due to some highly

publicised cases of marine disasters.

“In Europe and the US the govern-

ments have insisted on certain rulings.

I am not sure if those rulings have come

about with ample consultations, or if they

just come as a reaction. Whether it is

Asia, the EU or the US, we all believe that

we must protect the environment, but in

Asia I think there is more consultation

between the industry and the authorities

before new regulations are implemented,”

says SS Teo.

Regardless, Singapore supports and

complies with the regulations from the

International Maritime Organisation

(IMO), and is serious in working for a safe

and environmentally sustainable industry.

“I don’t think anyone in the shipping

industry today, whether in Europe, Asia or

in America, can sacrifice the environment

for commerce,” says SS Teo.

9DNV Forum 02 2005

TEO SIONG SENG, better known

as SS Teo, President of the Singapore

Shipping Association.

TEO SIONG SENG

“ I look upon it as a mission to grow Singapore as an International Maritime Centre. We can achieve it, and then we would have created more opportunites, not only for our own people, but also for the surrounding countries. I believe in that.”

Teo Siong Seng

System certification:

“Nothing more than intelligent staff management”

When Ulrich Bruhnke starts talking about

his company’s hand-made M engines, it

becomes immediately apparent that this is

a man who has found his vocation. In the

eyes of many a BMW enthusiast, professor

Ulrich Bruhnke, chief executive of BMW

M GmbH, has the most coveted job in the

world. This is the man who presides over

the fortunes of BMW’s sports cars. The

nippy, top-end BMW M line, that has

achieved cult status among its fans, is

designed, developed and manufactured,

in part manually, here at the Munich

headquarters.

“We’re the inspiration team within the

BMW group,” explains Bruhnke, not with-

out pride. “Our development department

is a think-tank in which the whiz kids with

a real driving passion can let their hair

down.”

QUALITY NEEDS TO BE MANAGED Although

an enviable job in one of the most vibrant

sectors in the world, creativity and

dynamism must be balanced by discipline

and quality controls. “Speed in our market

often goes hand in hand with quality defi-

ciencies,” Bruhnke continues. “BMW M

GmbH stands for the best sports engines

around the globe and for unconventional,

custom-made products. We are goldsmiths

and high-performance sportsmen in one.”

Not an easy task in a market as merciless

and unforgiving of quality defects as the

automotive sector. For this reason, the

industry is turning increasingly to the

objective assessment and monitoring of its

performance by impartial experts such as

DNV.

In 2002, BMW M GmbH hired DNV for

the first time to assess the company’s per-

formance according to the EN ISO

9001:2000 quality management system.

“We are grateful for the methodical sup-

port and far-sightedness of DNV’s quality

auditors,” says Bruhnke. “The auditors

boost staff awareness of their work

processes.”

BMW M GmbH has the motto “Creativity

by design”, a goal which is supported by

DNV’s auditors who analyse the work

processes jointly with the staff, identifying

responsibilities and highlighting potential

bottlenecks.

THE LEARNING COMPANY “Companies that

don’t learn sufficiently quickly will be chas-

tised by the market. It couldn’t be sim-

pler,” says Bruhnke. “We regard our col-

laboration with DNV as a form of joint,

“Ultimately, process-oriented certification is nothing more

than intelligent staff management. In the course of our

partnership with DNV, we have been able to successively

increase the individual responsibilities of our employees,”

says chief executive of BMW M GmbH, Ulrich Bruhnke.

TEXT: ISABEL RADWAN PHOTO: BMW

“Nothing more than intelligent staff management”

11

>

escorted learning. Ultimately, it is our

customers who benefit at the end of this

value-added chain. They are individuals

who invest not only in the ultimate driving

experience but also in their confidence in

a world-class technology.”

This can only be assured in the long

term by a management that takes a com-

mitted approach to anticipating risks and

bottlenecks. Risk management is therefore

commonplace at BMW M GmbH, with

DNV’s auditors acting as a mirror that

regularly reflects the staff potential for

improvement. “If you’re going to spear-

head the market, you must also set the

benchmarks,” Bruhnke continues. “For

our staff, this collaborative venture is a

sportsmanlike assessment of their abilities

and potential.”

BMW M GmbH can look back on many

years of measurable benefits for its staff

from the collaboration with DNV. This is

the best incentive to continue fervently

along this path. Ultimately, a motivated

workforce offers the best guarantee for

quality. No one knows that better than

Ulrich Bruhnke.

DNV Forum 02 2005

BMW M – CREATIVITY BY DESIGN

BMW M GmbH is synonymous with world-class sports engines and tailor-made

production for aficionados. At BMW, M stands for exceptionally powerful engines.

Vehicles of the legendary BMW M line started being manufactured in 1972.

Professor ULRICH BRUHNKE became BMW M GmbH chief executive in December

2003. Under his management, the company launched the new BMW M5 and BMW

M6 cars. The professor of vehicle technology is commonly regarded as one of the

top managers in the automotive sector and is also an enthusiastic car fan in his

spare time.ULRICH BRUHNKE

13DNV Forum 02 2005

Break ing

Using production equipment

located in water depths of 1,000 meters,

the gas will be raised and transported

from Nyhamna all the way to the UK.

In October 2007, gas will begin to flow

through the process plant at Nyhamna on

the Møre coast of Norway, marking the

start of operations in Europe’s largest cur-

rent gas development. The project stands

out for its plethora of first-time achieve-

ments, not least in bringing gas directly to

shore in multi-phase flow pipelines from

subsea wells in waters up to 1,000 m deep

– Norway’s deepest offshore field to date.

“This is one of the world’s most chal-

lenging offshore developments,” says Einar

Kilde, Hydro’s vice president and offshore

project manager for Ormen Lange. “Using

production equipment located in water

depths of 1,000 metres, we will raise the

gas and transport it from Nyhamna all the

way to the UK through the world’s longest

subsea pipeline, the Langeled.”

Some 21 billion m3 a year of natural gas

will be produced at peak from the field’s

24 wells, boosting Norway’s gas export

capacity by 25 percent. Most of this gas will

be transported through the new Langeled

pipeline (1,200 km) to Easington in the

UK. “In Ormen Lange, we have a very

robust project based on large gas reserves

– around 400 billion m3. When the gas

arrives onshore, it must be treated, turned

around and redirected to the UK through

the Langeled pipeline, and that is where

the Nyhamna processing plant will act as

the hub for the field development,” says

Kilde.

SUBSEA-TO-LAND CONCEPT In selecting

the offshore field development solution,

Hydro opted for a novel subsea-to-land

concept. Explains Kilde, “Developing

Ormen Lange represents a major chal-

lenge with the combination of deep

waters, extremely rough seabed condi-

tions, long tie-back distance and demand-

ing weather conditions. Consequently, we

evaluated a range of solutions – ranging

from a relatively novel subsea-to-land con-

cept (subsea wells tied back to the onshore

terminal) to more traditional deepwater

15

eak ing new ground Hydro’s giant Ormen Lange project is currently Europe’s

biggest gas development. Due on stream in 2007, the field

will be linked to the UK via the world’s longest subsea gas

pipeline, and will supply the UK with up to 20 percent of

its total gas requirement.

TEXT: STUART BREWER ILLUSTRATION AND PHOTO: HYDRO

>

concepts involving an offshore processing

facility with wet and dry wells like a SPAR,

tension leg platform or semi-submersible

rig. After reviewing all the technical and

commercial aspects, we opted for the sub-

sea-to-land solution.”

Commenting on DNV’s role in the proj-

ect, DNV Consulting director Remi Eriksen

says that DNV assisted in selecting the off-

shore field development solution through

combining DNV’s risk management tools

with technology qualification services and

other relevant specialist services.

RISK-BASED APPROACH Says Eriksen, “The

approach used included a risk-based gas

deliverability model, which was developed

during the concept evaluation phase and

FEED (Front-End Engineering Design)

phase to assist in concept selection and

concept optimisation. The model estimat-

ed the gas volumes that would be delivered

from Nyhamna on a yearly basis and the

maintenance and intervention costs associ-

ated with producing these volumes. All

failures and incidents which would result

in loss of production relative to specified

market demand were included. Also, a

strategy on how to manage the IMR

(Inspection, Maintenance and Repair)

activities was developed.”

According to Eriksen, the economics

of deepwater developments are different

from those of shelf developments – both

the stakes and risks are higher. Until

recently, it was common to evaluate deep-

water ventures based on projections of

Capital Expenditures (CAPEX) and

Operational Expenditures (OPEX), with-

out a proportional amount of effort to

assess the magnitude of the cost associated

with system failures and unplanned events

– Risk Expenditures (RISKEX).

“The project demonstrated how mod-

ern risk techniques can facilitate the deci-

sion-making process in deepwater develop-

ments,” says Eriksen and adds “The value

of including RISKEX in the decision-mak-

ing process in deepwater developments is

apparent as larger amounts of money are

invested, which rely on future high rev-

enue streams. Furthermore, deepwater

developments rely on new technology

which has yet to be field proven. Risk tech-

niques allow the implications of system fail-

ures and unplanned events to be incorpo-

rated into business evaluations to arrive at

the best alternative.”

16 DNV Forum 02 2005

EINAR KILDE, Hydro’s vice president

and offshore project manager for

Ormen Lange.

EINAR KILDE

REMI ERIKSEN

REMI ERIKSEN,

DNV Consulting director for Oil and

Gas.

COST SAVINGS One of the project’s main

results showed the potential cost savings

related to focusing attention on critical

areas and improving solutions and con-

cepts where the potential value-yield is

highest. A second advantage of the risk

techniques used is that enhancement

opportunities are discovered during the

conceptual design phase rather than later

in the development when the cost of

changes is much higher.

“It is generally acknowledged that oper-

ational experience provided by respected

specialists within a team has larger impact

on a decision process than a study done by

an external party,” says Kilde. “With this in

mind, Hydro decided to have DNV special-

ists integrated in the project team to

involve multidisciplinary expertise and to

build confidence in the results generated.

This approach turned out to be a success,

allowing the gas deliverability analysis to

become a ‘real-time’ decision basis.”

The Ormen Lange project is currently

in the detail engineering and execution

phase. The Nyhamna site has now been

prepared and work on pipes, underground

pipelines and the casting of foundations

for the process plant is well under way.

Work started on laying the pipelines from

Nyhamna a few months ago. Subsea instal-

lations were lowered onto the field seabed

this summer while the work of preparing

the seabed continues.

ON SCHEDULE In June and July, the first

33 km of the 130-km-long, 30” diameter

gas pipelines that are to bring the gas from

the Ormen Lange field into the process

plant at Nyhamna were laid, along with the

first 33 km of the 42” diameter Langeled

pipe, which will finally bring the treated

gas to cookers and power stations in the

UK. Control cables and pipes for trans-

porting anti-freeze to the subsea facility

will be entrenched in the seabed next year.

“The schedule for the Ormen Lange

project is tight in all phases, but we are

confident that we have the right people

and the right tools to carry out this job

successfully,” says Kilde. “We will be ready

in 2007.”

DNV Forum 02 2005

“Ormen Lange is one of the world’s most challenging offshore developments.”

Pivotal to the Ormen Lange project is the gas processing plant at Nyhamna which

is designed to export 70 million m3/d of processed gas. The site stretches for almost

1,500m along the coastline and goes back into the island almost 2,000m.

“We’re developing expertise in Norway

to carry out this kind of service world-

wide – and not just in the field of space,”

says Narve Mjøs, who is in charge of

DNV’s space activity.

Safe software in space

> > news

DNV will carry out independent software

verification and validation of the Aeolus

satellite.

Independent software verification and valida-

tion is an engineering practice intended to

improve the quality and reduce costs of a soft-

ware product. It is most successful if it saves

the mission by finding a fault not discovered

through the developer’s own quality systems.

DNV is currently leading a project on

behalf of the European Space Agency (ESA),

developing a guide for independent verifica-

tion and validation of software. This work led

to the recent contract where software verifi-

cation and validation is performed for the

Aeolus satellite, which is being built for ESA

by Astrium Ltd. The satellite will provide glob-

al observations of wind profiles to improve

the quality of weather forecasts, and advance

our understanding of atmospheric dynamics

and climate change processes.

The ESA, America’s NASA and Japan’s

Jaxa/Jamss routinely require independent veri-

fication and validation for critical software.

DNV has been asked by ESA to consolidate a

methodology that represents the best industry

practice across industries. The main result

from the project will be an independent soft-

ware verification and validation guide that is

sufficiently generic to be useful in all indus-

tries. The project is being carried out in coop-

eration with Denmark’s Terma, the UK’s SciSys

and Portugal’s Critical Software, and it will be

completed this autumn.

Photo

: Eva

Halv

ors

en

Einar Kilde

17

Right the first time“You won’t get a second chance, so when constructing and installing pipelines

in deep waters, you have to do it right the very first time,” says Subsea 7´s Iain Adam.

TEXT: PER WIGGO RICHARDSEN PHOTO: SUBSEA 7

Rio de Janeiro is one of Subsea 7´s main hubs in providing pipeline installations.

IAIN ADAM is project manager and

responsible for the pipeline that will

start in very deep waters offshore

Brazil, but will rise from water depths

of 1,200 metres to 70 metres in less

than four kilometres.

IAIN ADAM

SUBSEA 7

A major international subsea engineering con-

tractor. The company’s offshore operations are

supported out of the Asia Pacific region,

Brazil, the Gulf of Mexico, Norway, the UK

and West Africa. It has 3,000 employees.

Subsea 7 has more than 100 remotely operat-

ed vehicles, four pipeline construction yards

and a fleet of modern ships.

PETROBRAS

Brazil’s largest energy company, with some

50,000 employees and a huge portfolio of

ninety-three production platforms, ten refiner-

ies, almost sixteen thousand kilometres of

pipeline, and seven thousand service stations.

Petrobras, founded in 1953, is headquartered

in Rio de Janeiro and has offices and adminis-

tration managers in other major Brazilian cities.

! facts:

New plans for developing oil and gas

resources off the coast of Brazil have

recently been approved. All those involved

in these new projects have to overcome

water depth of 1,400 metres and a steeply

sloping seabed.

Petrobras, the Brazilian oil and gas

major, is to install new pipelines for oil as

well as gas within the Campos basin and

the Espiríto Santo basin. Subsea 7 has

been awarded the engineering, procure-

ment, installation and construction con-

tract for these jobs.

Iain Adam is Subsea 7’s project manag-

er and thus responsible for doing the

whole job right the first time. He says:

“We need the skills and experience of all

involved in these challenging projects.

Pipelines have been installed in deep

waters before, but you can never rely on

old experience. I believe we have got off

to a good start and have the pleasure of

collaborating with capable professional

companies and professional people. As

you meet tough challenges, you have to

be 100 percent focused at all times.”

SUBSEA 7’S BIGGEST CONTRACTS The first

pipeline to be installed is a 67-kilometre

gas export line. This is part of an overall

plan for the Golfinho field in the Espiríto

Santo basin. The first gas is scheduled for

delivery by April 2006.

As part of the overall plan for the

Campos basin, three oil-export and two

gas-export pipelines will then be complet-

ed. The total length of these pipelines

will be almost 130 kilometres and the first

petroleum will flow through these pipes

at the end of 2006.

“This is among Subsea 7’s biggest contracts

ever, worldwide. Although the installation

process will not start for almost a year, the

engineering process has been on-going for

a while,” says Adam.

“This is a technically difficult project.

The seabed the pipeline has to cross on its

way from the Golfinho field to shore rises

from water depths of 1,200 metres to 70

metres in less than four kilometres. The

pipeline may also cross 105 free spans –

a number that we really want to reduce.”

THE DEMAND WILL INCREASE Iain Adam

expects more pipelines to be laid in these

petroleum-rich provinces off the Brazilian

coast.

“The plan for further developing

Golfinho 2 is a hot topic right now. The

demand for gas in Brazil is increasing. The

demand for oil is high and will rise. There

are currently some unsolved political ques-

tions related to tax systems depending on

where the oil is landed. If these are solved,

my guess is that new pipeline projects will

be started in the years to come.”

He wants to mention the environmen-

tal aspect too: “Pipelines reduce the risk

of spills. And pipeline will in the long

term have a positive economic effect too.”

ADOPTED DNV PIPELINE STANDARD For

Subsea 7, as for all contractors operating

in Brazil, Petrobras is its most important

partner. In 2000, Petrobras decided to

adopt the DNV pipeline standard OS-F101

as the company standard for the design of

all its subsea pipelines.

Iain Adam completely understands why

Petrobras made this decision. “It’s a good

standard. It addresses all parts of a pipe-

line project, and the result is a high-quality

end product.”

19DNV Forum 02 2005

“ Pipelines reduce the risk of spills and will in the long term have a positive economic effect.”

Subsea 7’s vessel will soon leave Rio to start installing pipelines in deep waters off the coast of Brazil.

Iain Adam

Photo

: Per

Wig

go R

ichard

sen

20 DNV Forum 02 2005

Japanese NYK Line is one of the worlds leading shipping companies, with more than 660

vessels, both chartered and owned, in its fleet. Impressive environmental efforts brought

the company the prestigious 2005 Heyerdahl award for environmental excellence. “We

consider the environment equal to safety,” says Captain Hiroshi Sekine, General Manager

of Safety and Environmental Management Group for NYK Line.

TEXT: ANDERS ØVERBERG PHOTO: NYK LINE

NYK (Nippon Yusen Kaisha) Line provides logistics services via sea, land, and air, but

their activities are centered on marine transportation. They have more than 660 vessels

in their fleet, counting both chartered and owned. In 2005 the company celebrates its

120th year, and does so focusing more on the environment and safety than ever before.

Considering environment

equal to safety

“Our focus in NYK Line when it comes to

environmental safety is 99 percent on

reducing the risks for accidents, which

can cause devastating pollution.

Protecting the environment is very impor-

tant for us as a shipping company, and we

have made strict requirements to ensure

safe and reliable operations that all ships

we operate must follow,” says Sekine.

COMPLIANCE NYK Line's quality assurance

activities are based on a proprietary stan-

dard designed to achieve safe operations

above a defined level. The standard is

called ‘NAV9000’.

“We request all ship owners and ship

management services companies to apply

these standards to their own management

system. At present about 80 companies

that charter ships to NYK have signed an

agreement to follow these requirements,”

says Sekine.

NAV9000 has been designed in a

way that if they follow it, then auto-

matically operations are compliant with

the ISM code. “If everyone followed the

code, I believe there would be no inci-

dents. However, some still don't comply,”

he says.

21DNV Forum 02 2005

>

NEAR MISS BOX An important part of

NAV9000 involves the crews of every ship.

“We encourage every member of the

crew on all our ships to become aware of

all incidents that did not lead to accidents

and to make a report, no matter how small,

and drop it into a box called the ‘Near

Miss Box’. The reports can be anonymous.

Last year, we had more than 6,000 such

reports of Near miss and Unsafe Act/con-

dition related to safe operations and envi-

ronmental protection, which I think is

some kind of record,” says Sekine.

Most of the reports are concerning

human error, and they are used to

improve safety onboard even further.

ENVIRONMENTAL EFFORTS In 2004, NYK

Line published a Social & Environmental

report detailing their efforts to ensure

safe and responsible operations.

“In addition to safety considerations,

we have taken a number of concrete

actions to limit the adverse effects on

the environment from operations. Ballast

water exchange has been introduced, and

ballast water treatment system is under

investigation and development as a part

of a countermeasure. We have also intro-

duced waste management, and have over

the last 10 years worked hard on creating

the NYK bilge water treatment system,

which our government is taking to the IMO

(International Maritime Organisation),”

says Sekine.

They are also in compliance with

regards to the IMO regulations demand-

ing low sulphur fuels, and are switching to

low sulphur fuel on ships staying in Port of

Los Angeles.

“New and advanced engines that are

electronically controlled and burn cleaner,

therefore emitting less nitrogen oxide

(NOx), have been introduced on some

of the new NYK ships. For six years from

fiscal 2005 to 2010, the NYK Group will

invest 1.38 trillion yen (equivalent to

US$13.8 billion) to conduct fleet expan-

sion to 880 ships, from the current 660

ships. We believe that the electronically

controlled engine technology will be a key

factor for these newbuildings. And over

time, NYK Line is looking to improve the

engine on all current vessels,” says Sekine.

HARD TO INNOVATE HARDWARE Such hard-

ware innovations take time and effort.

Shipping companies are typically more

focused on process improvements and

strict routines as tools in promoting safe

operations.

“We would like to see an increased drive

for hardware innovations, such as

improved wind generators, solar power

and others, to make an impact on the ship-

ping industry. It is very difficult for a ship-

ping company such as ours to be innova-

tive in this regard. It takes a very long time

and it's costly. Classification societies are

much better positioned, with plenty of

data available. They should take the lead

as innovators for the shipping industry,”

says Sekine.

A NEW VISION FOR THE FUTURE According

to Sekine, there is little environmental

concern among the population in Japan.

Unlike in the west, there isn't much pres-

sure from environmental groups towards

the industry to improve. But this does not

reduce the environmental focus for NYK

Line.

“We will continue our work and put our

new environmental management vision

into practice. The vision focuses on con-

tributing to a sustainable society, while

aiming to manage environmental risks.

It fits together with our motto “Sail on

Safety”, which underlines our mission to

continue safe operations,” says Sekine.

22 DNV Forum 02 2005

Captain HIROSHI SEKINE, General

Manager of Safety and Environmental

Management Group for NYK Line,

says that it is the role of a shipping

company to carry out safe and envi-

ronmentally sound operations, and

contribute to a sustainable economy.

CAPTAIN

HIROSHI SEKINE

“We will continue our work and put our new environmental managementvision into practice.”

Hiroshi Sekine

Photo

: A

nders

Øvr

eberg

23DNV Forum 02 2005

“We had an accident in Tokyo Bay about

eight years ago, which caused much

inconvenience and damage,” says Takao

Kusakari, chairman of NYK Line. “In

hindsight it was this event that triggered

us to become serious when it comes to

environmental issues.”

The accident Kusakari refers to happened

in July 1997, when the NYK’s VLCC

(very large crude carrier) Diamond

Grace had an oil spill accident in Tokyo

Bay.

“Over the last eight years we have worked

extensively and hard to improve. We have

accomplished perhaps 50 to 60 percent

of what we would like to achieve. I would

like to see us as the number one shipping

company in the world with regards to safety

and the environment,” says Kusakari.

HEYERDAHL AWARD

Kusakari accepted the prestigious

Heyerdahl award this year on behalf of

NYK Line at an award ceremony in

recognition of the company's impressive

efforts and commitment to improve

their environmental performance.

“Even though ships are environmentally

much better than trucks and cars as

means for transportation, we in the ship-

ping industry are still consuming huge

quantities of fuel. We have to reduce

that consumption. And most important,

following up our motto “Sail on Safety”,

we will try to realise one full year of

operations without an accident,” said

Kusakari at the award ceremony in

Tokyo.

Accident triggered NYK´s environmental attention

The Norwegian Minister of Trade and

Industry, Børge Brende, presented the

Thor Heyerdahl award to the Chairman

of NYK Line, Takao Kusakari. In his accept-

ance speech Kusakari stated his ambition

to see NYK Line “as the number one ship-

ping company in the world with regards

to safety and the environment.”

Photo

: A

nders

Øvr

eberg

“This production method may mean a quantum leap for shipbuilding.”

Ole-Jacob Libæk

Libæk has plenty of experience in launch-

ing new concepts. Many people have made

losses by introducing new concepts too

early. However, when it comes to this proj-

ect, developed by DNV’s Pål G. Bergan

and his team, the experienced shipbroker

is in no doubt: “The timing is perfect.”

“There is now a huge demand in the

market for FSO (Floating Storage and Off-

loading) and FPSO (Floating Production,

Storage and Offshore Loading) vessels. An

FSO or FPSO is exposed to different forces

than an ordinary ship, which has to move

forwards in all kinds of weather and waves.

We’ve seen that this is a logical place for

the concept to begin.”

It is most interesting to see how this proj-

ect has developed over the last three years;

starting with concept benchmarking against

panamax bulkcarriers to the present identi-

fication of a whole range of exciting appli-

cation areas. “The concept is no doubt

commercially viable,” says Libæk. Over the

past 18–24 months we have seen sharp rises

in newbuilding prices and in the value of

second-hand ships. These are now in short

supply. This is at the same time ideal for

the sandwich project.”

FASTER, CHEAPER AND STRONGER

In Libæk’s opinion, two factors in particu-

lar make the sandwich concept commer-

cially viable: its price and delivery time.

“The first sandwich FSO may well be

ready for delivery at the end of 2007. With

material costs reduced by around 30 per-

cent and a lifetime of 30–40 years for each

unit, the concept is clearly competitive. I

can see that this technology has an imme-

diate potential for FSOs and FPSOs, and

soon also for LNG gasification and regasifi-

cation facilities.

These ships, which will have a light con-

crete core, are also very simple and quick

to build, and do not necessarily have to be

built at traditional shipyards. They do not

require propulsion machinery and the top-

side is containerised and uncomplicated to

put in place. Cargo handling and ballast

handling are bought in ready-made pack-

ages.

Existing newbuilding yards that build

200,000-500,000 dwt ships and offshore

FSOs are fully booked and can only deliver

towards the end of 2008 and beginning of

2009. However, in for example the Barents

Sea there are oil fields that will require

storage in 2007. Libæk reports a firm inter-

est from field developers, shipowners and

builders.

“They can’t wait until 2009,” says Libæk.

25DNV Forum 02 2005

Dr. Pål G. Bergan’s ideaThe concrete sandwich idea was conceived by Dr. Pål G. Bergan in DNV Research about five years ago. The concept has

been further developed during the past three years in a strategic research project together with Aker Yards ASA where

DNV has focused on technology development and Aker Yards has studied the potential for efficient fabrication and

implementation in different types of ships. Recently a series of laboratory tests of component fatigue and strength

were completed. The tests showed that the composite materials are superior to today’s welded steel structures. The

tests showed remarkable performance of sandwich components both with respect to strength and fatigue behaviour.

A more comprehensive, formal technology qualification project will be finished by the end of this year.

Perfect timing for concrete sandwichThe timing is now perfect for DNV’s concept of building ships and floating offshore

structures using a sandwich design with steel surface plates and a lightweight concrete

core, according to Ole-Jacob Libæk, the chairman of Libaek & Associates AS.

TEXT: HARALD BRÅTHEN PHOTO: NINA EIRIN RANGØY

Photo

: Eva

Halv

ors

en

26 DNV Forum 02 2005

The world’s largest underwater pipeline system:

Providing risk status

Gassco operates one of the world’s largest integrated gas

transport systems. 7,000 kilometres of pipeline connect

the oil and gas fields in the North Sea to the refineries on

land and the end-users in the UK and on the continent.

TEXT > HARALD BRÅTHEN ILLUSTRATIONS > GASSCO

From Gassco’s control centre at Karmøy in

Norway, the company manages the trans-

port of energy corresponding to 13 percent

of the total European gas consumption in

2004. DNV helps Gassco to monitor the

risk status of the pipelines’ technical

integrity.

As the operator, Gassco is responsible

for monitoring the technical condition

of the pipelines. DNV has installed a soft-

ware package in each of the Technical

Service Providers (TSPs), which are

responsible for carrying out the work of

securing the pipelines’ integrity. This soft-

ware package gathers information

and sends it to Gassco, which thus meets

both its own and the authorities’ control

requirements.

SIMPLE AND INTUITIVE DNV has a long

history of successful collaboration with

Gassco and has also arranged regular

forums for the TSPs. It was through this

work that the need for simplified, com-

mon reporting was identified. Gassco now

achieves this by using DNV’s new integrity

management portal, which is a module

within DNV Software’s Field Life Cycle

Manager. Gassco is the first user of the

pipeline portal.

The web application presents the infor-

mation in a simple, intuitive manner.

“With the integrity management portal,

my work is simplified, both when reporting

and when working on common tasks with

the TSPs,” says Benedicte Madsen, a senior

engineer and the person responsible for

following up the technical integrity and

condition of the pipelines at Gassco.

The information shows the pipelines’

technical integrity by stating the risk status,

current activities around the pipelines,

inspection plans and documents.

EASY UPDATING “Each TSP sends regular

updates, which are stored so that a com-

plete history of the pipeline is available,”

says Madsen.

The reporting to Gassco is achieved simply

by entering the data manually in order to

update the portal. The updates, which are

sent via a web service, are received by the

integrity management portal and directly

updated in Gassco’s database.

The TSPs which use the software system

ORBIT Pipeline for pipeline integrity man-

agement, updates the portal by simply

pushing a button in ORBIT Pipeline.

EFFICIENT, SECURE OPERATIONS Gas is one

of Norway’s most important export products

and, unlike other Norwegian exports, it has

its own transport network on the seabed.

“Our most important task is to ensure

the efficient, secure operation of the pipe-

lines, processing plants and platforms that

form part of the gas transport system,” says

Madsen. Gassco also coordinates the

efforts to expand the gas transport capaci-

ty, including those relating to the planning

and further development of new infra-

structure.

“This helps to ensure better control,

both for our customers and for the author-

ities. In this way, we also contribute new,

future-oriented solutions as well as moni-

toring what we already have in place,” says

Madsen.

27DNV Forum 02 2005

BENEDICTE MADSEN is senior engi-

neer and responsible for following up

the technical integrity and condition

of the pipelines at Gassco. “With the

integrity management portal, my work

is simplified, both when reporting

and when working on common tasks

with the Technical Service Providers.”

BENEDIKTE MADSEN

! facts about Gassco:

> Owned by the Norwegian state. Operator for Gassled.

> Responsible for safe, reliable gas transport.

> Transports gas worth more than USD 10 billion each year.

NORWAY

DENMARK

BELGIUM

FRANCE

UNITED KINGDOM

GERMANY

THE NETHERLANDS

St Fergus

Grane

Jotun

Sleipner

Emden

H7

B11

Dornum

Ula

Gyda

Ekofisk

Hod

Valhall

Draupner S/EEu

rop

ipe II

Euro

pip

e I

Norpipe

Zeep

ipe

II B

Zeepipe II

A

StavangerStatp

ipe

Zeep

ipe

I

Langele

d

Fran

pip

e

DunkerqueZeebrugge

Trondheim

Tjeldbergodden

Ha

lten

pip

eDraugen

Norne

Easington

Kårstø

Bygnes

Vesterle

d

Bergen

HeidrunÅsgard

NG

TS

Kristin

Åsgard

Transp

ort

Florø

KollsnesStatpipe

Ormen Lange

Nyhamna

Planned pipelines

Existing pipelines

Heimdal

Sture

Mongstad

OG

T

Huldra BrageVeslefrikk

Snorre

Tune

StatfjordGullfaks

Oseberg

Kvitebjørn

Troll

Visund

Gassco operates a pipeline system that is longer than

the distance from Oslo to Chicago.

Photo

: H

ara

ld B

råth

en

“When we say we are bottling passion, we

really mean it. Passion is the pay for us.

We believe that good wines are created by

good people in healthy vineyards.” This is

José Alberto Zuccardi’s quote. Since 1985

Familia Zuccardi has been managed by

him, the son of Don Alberto.

INNOVATION – A MOTIVATING FACTOR

In the 1950s Don Alberto Zuccardi was

a young, innovative man who started his

own irrigation company. His company

specialised in irrigation techniques for

the grape and soft fruit industries in the

region of Mendoza, close to the Andes

Mountains of Argentina.

Some years later – in 1963 – as a way of

demonstrating the effectiveness of his pre-

fabricated concrete and irrigation system,

the founder of the Familia Zuccardi pur-

chased a part of the dessert himself. Here

he demonstrated the system to growers.

Innovation has ever since been an impor-

tant motivation for the Zuccardi family.

They have their own research area and all

in all 32 different types of grapes are grown

28 DNV Forum 02 2005

In the 1950s Don Alberto Zuccardi set up his own irrigation

system and transformed parts of a dessert into flourishing

vineyards. Today, the Zuccardi family is one of Argentina’s

most respected wine producers.

TEXT: PER WIGGO RICHARDSEN PHOTO: WWW.FAMILIAZUCCARDI.COM

Bottling the flavour

of Argentina

29DNV Forum 02 2005

in their yards. All grape picking and prun-

ing is carried out by hand. Almost no

chemicals are used, and 60 percent of the

grapes are grown organically.

Since the computer was introduced two

decades ago, every aspects of production is

recorded in minute detail on the winery’s

database. All this to ensure the best quality

of every bottle produced. But even more

important, “We are always looking for

something better,” states José Alberto

Zuccardi as another example of the family’s

innovative spirit.

FORTH LARGEST EXPORTER Familia Zuccardi

is not among the largest wineries in

Argentina. In terms of production, they

are medium size, but in terms of export

they are the fourth largest. 65 percent of

Zuccardi’s wines are distributed to some

35 different countries. Only 35 percent

of their production is sold in the

Argentinean market. The average for

the 1200 wine producers of Argentina

is 10 to 90–10 percent export and 90

percent to the domestic market.

“During our first 10 years, we produced

wine only for our domestic market. The

export started in 1983, and has been

through a healthy growth since. Today,

every day is a step into a more globalising

world and our challenge is to always be

perceived as a respectable provider. By

differentiation, not by copying, we believe

Familia Zuccardi will strengthen its posi-

tion, but the ambitions will never be to

become huge,” states José Asensio, the

export manager of Familia Zuccardi.

Q FOR QUALITY He continues: “Right now

there is an oversupply in the global wine

market. There are many vineyards that

have more focus at their financial situation

and price of the wine, rather than the

quality of the wine. But the customers will

be looking for alternatives to volume sup-

pliers; in the long term they will pro-

nounce their judgement of poor quality.”

Mr. Zuccardi explains: “We have no ambi-

tions of being a volume producer. Our goal

is to focus on quality. It might be though in

a short run, but it will be good in the long

run. We will stay consistent on quality.”

Zuccardi has a brand that emphasis this

– it is represented by the letter Q –

Q for quality. Zuccardi Q is the Zuccardi’s

premium quality range. It is made from

grapes aspecially selected and hand-picket

from the winery’s top vineyard, and

matured in oak barrels for one year prior

to release to the market.

LOOKING FOR SOMETHING BETTER They

also use another letter in the alphabet to

brand their wine – Z as in Zuccardi. Since

they always are searching for something to

top what has already been achieved, a new

brand will soon be released: Zuccardi Zeta.

“This is why bottling passion is a factual

statement, not only a profiling statement for

our family,” says José Alberto Zuccardi.

“Some grapes are good, but certainly some

are superior. Some lots in the yard are bet-

ter than others, but we the people working

at all parts of the process can do a better

job at all single parts. As a result of all these,

we can stretch for the next, higher level.”

It is not that many wineries that are cer-

tified to meet international requirements

of management systems and food safety.

Zuccardi has.

Zuccardi says: “Certification fits into our

philosophy – to be better today than yes-

terday. For us, the certification process is

30 DNV Forum 02 2005

“Good wines are created by good people in healthy vineyards.”

José Alberto Zuccardi

an important tool in developing the winery

and in the end, the wine.”

SEARCHING FOR THE RIGHT PERSONALITY

But wine is not only about innovation, it

is also about passion, about tradition and

about roots. Ema, the 75 year old wife of

Don Alberto and the mother of José

Alberto is still taking care of one of the

most important functions at the winery.

When the Zuccardi family are searching

for new employees, no one is employed

without Ema’s acceptance. All first inter-

views are carried out by her – not only

searching for the right skills, but for the

right personality.

“The next generation will follow the

original values, trust me,” says José

Asensio, the export manager, before

he corrects himself. “Trust Ema!”

31DNV Forum 02 2005

“Certification fits into

our philosophy

– to be better today

than yesterday.”

Don Alberto Zuccardi with his son

José Alberto Zuccardi, who has managed

Familia Zuccardi since 1985.

José Alberto Zuccardi

DNV Forum 02 2005

> > news

32

Powerful hydrogen partnership

DNV Global Wind Energy has invested in a new test centre

called the Blade Test Centre.

Co-owned by the Danish companies Risø, Force Technology as well

as DNV, the Blade Test Centre is equipped with state-of-the-art blade

test facilities. While the old laboratory could test wind-turbine blades

with a length of up to 50 metres, the Blade Test Centre is able to

test blades with a length of up to 75 metres.

DNV Global Wind Energy has been a key player since the first off-

shore wind farms were developed. In Denmark, wind energy today

generates 20 percent of all electricity.

“Wind-generated energy is a mature technology that is expected

to take a significant share of the energy market,” says Henrik O.

Madsen, chairman of the board of the Blade Test Centre and COO

of DNV Certification.

Wind-turbine blade test centre opened

in DenmarkA partnership including the Norwegian majors Statkraft, Statoil

and DNV are to establish a hydrogen research and demonstra-

tion centre in Trondheim, Norway.

The research centre will develop environmentally friendly, profitable

and safe ways of producing hydrogen. It will be an important contri-

bution to the national efforts to prepare for a future hydrogen mar-

ket and will be operative by early 2007. DNV will develop and qualify

safe and reliable technology within consulting, qualification and cer-

tification based on activities at the hydrogen centre.

“Hydrogen is expected to play an important

role as an energy carrier in the future,” says

DNV’s Ståle Selmer-Olsen.

DNV secures more LNG ship orders

DNV has won the lion’s share of Qatar’s second batch of LNG

ship orders. Seven of twelve megacarriers ordered for the Ras

Gas III project will be built in Korea to DNV class.

Qatar has prompted huge newbuilding orders in the LNG (Liquefied

Natural Gas) trade to cope with its forthcoming production volumes.

Eight megacarriers (over 200,000 m3) were ordered last year, four of

which are to DNV class. Another order for twelve ships has now been

placed and seven of these will be classed by DNV.

DNV’s business director for tankers, Jan Koren, comments, “All

seven vessels will be built in Korea. NYK in Japan ordered three 216

000 m3 ships from Hyundai (HHI) for delivery starting in April 2008.

Also, Teekay has ordered four 217 000 m3 ships from Samsung for

delivery during the period

April-June 2008. These are the

largest LNG carriers on order

to date.”

The vessels now ordered are

part of Qatar’s planned LNG

shipbuilding program which

ultimately could comprise

over 60 LNG carriers.

The performance of DNV-classed vessels in Port State Control contin-

ues to be one of the world’s best. In the recently published Paris

Memorandum of Understanding (MoU) 2004 annual report,

Germanischer Lloyd, DNV and Registro Italiano Navale are singled

out as among the best performing classification societies.

Based upon accumulated figures for the 3-year rolling period of

2002-2004 from the four major port state regimes in the world

(namely, the Paris MoU, Tokyo MoU, Indian Ocean MoU and United

States Coast Guard), DNV’s detention rate as a percentage of vessels

inspected was 2.73 percent, compared to the average of 6.23 per-

cent (all Class Societies) and 4.22 percent (IACS members).

Port State Control ranking attests

to DNV’s quality standards

Photo

: N

ina E

irin

Rangøy

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: H

orn

s Rev

Completes global research network

Climate impact of global and European transport systems on

land based, shipping and aviation activities is to be quantified.

DNV has joined the EU funded project QUANTIFY on global change

and ecosystems, and is responsible for two activities on modelling of

emissions to air from maritime operations in the past (from 1900),

present and the future (year 2100).

The understanding of short-term and long-term changes such as

fleet, fuels and propulsion is important for DNV’s task. The project

will provide provision of forecasts and policy-relevant advice, which

will be supplied to governments and to international assessments of

climate change and ozone depletion, such as the Kyoto Protocol.

“DNV was invited to participate in

the project due to our long-term

research experience on modeling

of emissions to air from maritime

operations,” says Øyvind Endresen

and Hanna Lee Behrens.

Quantification of worldwide emissions

DNV Petroleum Services completes worldwide R&D networkwith new research unit in Fujairah.

DNV Petroleum Services now has a global research network with the

addition of a research and development (R&D) unit in the company’s

Fujairah fuel testing facility. The new setup complements DNVPS’

existing research units in Singapore, Oslo, Rotterdam and the USA.

Equipped with a complete range of advanced analytical equip-

ment, including Fuel Ignition Analyser and Gas Chromatography-

Mass Spectrometry instruments, the R&D centre in Fujairah will

strengthen DNVPS’ capability in identifying fuel contaminants and

their impact on ship operation and safety.

Fuel testing in a DNV Petroleum Services lab.

DNV Forum 02 2005 33

DNV ringside when Olympic Games were

awarded to London

DNV carried out the quality control of the voting system and

procedures when IOC elected London as host for the summer

Olympic Games 2012.

Appointed by IOC, a DNV team was present on the main floor dur-

ing the exciting process in Singapore. In the days leading up to the

announcement, the technical system and procedures used by IOC

were tested by DNV’s team.

Photo

: N

ina E

. Rangøy

Photo

: Sva

npix

DNV has been contracted to class the new 6th generation

semi-submersible drilling rig. When complete in 2007, Eastern

Drilling 1 will be the largest of its kind ever built.

DNV has been contracted to

class the Eastern Drilling 1 semi-

submersible drilling rig at the

Samsung Heavy Industry (SHI)

yard in Korea. DNV will be

responsible for the total contract

and the site supervision, as well

as for the approval and project

management in the first phase

of the project.

The rig is designed with dual

derrick and an advanced dynamic positioning system. The operator,

Smedvig, will employ the rig in harsh-environment areas. It will be

capable of drilling to 3.000 meters. Construction work at Samsung

is scheduled to start in March 2006.

World’s biggest semi-submersible rig

Photo

: Eva

Halv

ors

en

DNV is providing risk management services to Sevan Marine

during the design and construction of a unique FPSO.

The Sevan Stabilized Platform, or SSP, is the innovative, round float-

ing production, storage and offloading (FPSO) unit currently under

development. The first unit is scheduled to commence service off the

coast of Brazil for Petrobras in mid-2006 with a second unit destined

to enter service in the North Sea in 2007.

Compared with traditional ship-shaped FPSO facilities, Sevan

Marine ASA, who are developing the concept, claim many advan-

tages, most notably that it will deliver comparable production per-

formance for significantly lower cost.

DNV is working closely with Sevan Marine to ensure that the SSP

will be designed, built and maintained to meet internationally recog-

nised safety and quality standards. Additionally, DNV is assisting

Sevan Marine implement a world-class hazard management process

by which safety, environmental impact and other business risks will

be effectively controlled.

The SSP concept combines innovation, simplicity and re-use of

existing technologies. It has many features and attributes found on

existing oil and gas production facilities, both fixed and floating. Its

intended marketplace is worldwide, in all water depths. Being scala-

ble it will have storage capacities and deck size to suit a wide range

of production profiles.

DNV is bringing its international experience-base to support Sevan

Marine understand worldwide requirements. The goal is to interna-

tionalise the concept design and risk management processes thereby

minimising rework and maximising knowledge sharing from one unit

to the next.

Enterprise risk management contract

with PDVSA

DNV has commemorated its 25th anniversary in Argentina. During

these 25 years DNV has issued more than 1,000 certificates and is

today the market leader in the country.

In 1990, DNV Argentina was the first certification body in the

country to issue an ISO 9001 certificate. Today 70 highly skilled and

experienced employees work for DNV in Argentina.

DNV operates in a large number of industries in both the

Argentinean and international markets. These include the maritime

industry, the automotive industry, the oil and gas industry and the

metallurgical industry. Over the past few years, DNV Argentina has

also developed services for the food and beverage sector.

DNV 25 years in Argentina

> > news

34 DNV Forum 02 2005

Venezuelan oil major PDVSA has signed a contract with DNV

in Houston to provide Enterprise Risk Management training.

The contract covers training for 25 PDVSA business managers for

a five month period.

Last year PDVSA executive management set out its vision for estab-

lishing a new risk management culture across the entire company.

Corporate wide training in state of the art risk management tools,

techniques and methodologies is key to realizing this vision.

The training programme will cover nearly every aspect of modern

risk management, from qualitative and quantitative risk assessments,

failure modes and effects analysis, financial risk management, project

risk management and political risk assessments.

“We are delighted to be presented with this opportunity to work

with the management team of one of the world’s largest energy com-

panies and important OPEC member,” says Iain Light, COO of DNV

Consulting.

Sevan Marine’s unique FPSO (Floating Production, Storage

and Offshore Loading) design.

Unique FPSO design

Class notations reduce accidents

As Paris is an important hub

for the oil and gas industry,

mainly for Europe and West

Africa, the new DNV office in

the city is an important vehi-

cle for establishing closer

relationships with the major

French players.

“We see Paris becoming an

increasingly important centre for

offshore-related business, with

the major companies – Total,

Technip, Saipem, Stolt Offshore,

Doris and Gaz de France – all

located there,” said COO

Elisabeth Harstad, at the open-

ing ceremony in the Areva

Tower, centrally located in La Défense, Paris, with Total and Technip

as its closest neighbours.

Over the past couple of years, DNV has developed business opera-

tions with French offshore companies, and is currently involved in

several of the deepwater development projects in West Africa.

New DNV office in Paris

Sonatrach awards DNV contract

DNV has signed a contract with Algerian oil national Sonatrach for

the development and implementation of an emergency and crisis

management system for the organisation’s 127 sites in Algeria.

DNV will be responsible for the development and implementation of

the emergency systems, which is the first phase in the development of

an overall risk management programme. The work will involve a series

of assessments and gap analyses focussing on the hazards and risks

inherent in major hydrocarbon activities in a desert location.

The work commences immediately and is planned for the forthcom-

ing 18 months. “We will place teams in Algeria to conduct the work,

drawing resources from our offices in the UK, Benelux and Norway,”

says COO of DNV Consulting Iain Light.

Sonatrach, the 11th biggest oil and gas producer in the world,

employs 120,000 people and has been operating in Algeria for

over 40 years. It is one of the major suppliers of gas to the central

European markets, and one of the world’s leading exporters

of liquefied petroleum gas.

A study of all DNV-classed vessels of 6,000 grt and above

clearly shows the safety value of additional Class notations.

The accident rate – collisions, groundings and contact damage –

for vessels holding the “nautical” class notations NAUT-AW and

NAUT-OC built since 1990 has been half that of ships without them.

This statistical difference confirms the value of operational aspects

being covered by additional class notations. The main focus here is

on the “total bridge system”, taking into account bridge procedures,

the human operator, the technical system and the man/machine

interface: all these play a major role in ensuring the safety of a

vessel at sea.

Solstad Offshore’s Normand

Skipper is one of the world’s

biggest and most effective

offshore service vessels, built

according to DNV’s NAUT-

OSV guidelines.

DNV Forum 02 2005 35

From left: Iain Light, COO of DNV Consulting, Mohamed

Meziane, President Director General, Sonatrach, and Madjid Ait

Allak, HSE Director, Sonatrach.

Shipping has a great story to tell Without us, the world would come to a grinding halt, unfed, unfuelled and unlubricated. Therewould be precious little manufacturing, with no access to either raw materials or markets, allthat “out of season” produce would rot in the fields and starvation would spread, grimly andinexorably, across the planet. Fanciful?

delivery system that criss-crosses the oceans.

We need to get in first and fast, as early as

possible, so that children at primary schools

learn about the amazing job done by mod-

ern shipping, before environmental inter-

est groups present them with negative mes-

sages. We then have to keep up the pres-

sure through the generations, as these

children mature.

IS IT SO DIFFICULT? It depends how we go

about the task. For a start we have to build

our visibility. We are probably never going

to get prime time television on network

channels or positive front page stories on

national newspapers, where there is a dis-

tinct lack of interest in “good news”, but

there are plenty of alternatives for interest-

ing articles and features about ships and

shipping people.

You can list some of the essential ele-

ments that the industry needs, if it is to

promote awareness among the public.

We could do with a better political con-

stituency and a higher profile, positive role

models among both our industry leaders

and senior officers.

We need to be more open and less secre-

tive about our industry, boasting more

about our many achievements. There is

too much false modesty about. We should

be cultivating the local media, making sure

there is somebody who knows our manage-

ments and something about our business.

We need to be more active in challenging

the frequently wrong assertions that are

made about ships and shipping by ill-

informed journalists, but we should also

be asking why it is that they are so igno-

rant, and what we can do to make them

better informed!

Above all we need leadership, along with

a few heroic souls who are prepared to put

their heads above the parapet and support

shipping and its institutions, telling the

great story we have to recount.

This frightful prospect would be a world

without merchant ships; those wonderful,

yet invisible conveyors of everything we

need for modern 21st century life. They

are as essential as electricity and potable

water, yet just like the utilities we depend

upon, we take merchant ships completely

for granted. We fill our supermarket trol-

lies and petrol tanks with abandon, with-

out considering for a second how the

goods and fuel are made so accessible.

Only when a ship sinks, leaving oil in the

water are folk reminded of our maritime

dependence. Then people just tend to get

angry.

It’s a fact of life, and human nature, but

we in the shipping industry ought to be

concerned about the widespread public

ignorance of what it is we do and the wide

gulf that exists between our small maritime

population and everyone else. We need

some bridges to be built.

BUT IT IS ONLY THE INDUSTRY THAT CAN

BRIDGE THE GAP? We, who understand the

magic and mystery of ships, have to take

more seriously the responsibility of telling

the general public why they are so impor-

tant, and why shipping is so fascinating an

industry.

We have to recognise that our communi-

cation has not been effective, and that we

have been too defensive and reactive in

our approach. We should not wait until a

tanker spills her cargo, before we tell the

public something about the amazing energy

MICHAEL GREY,

maritime consultant

last word!

36 DNV Forum 02 2005

Another tanker on its way to help fill our petrol tanks.

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PUBLISHED BY

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EDITOR

Eva Halvorsen

Tel: +47 67 57 97 19

Mobile: +47 906 80 956

eva.halvorsen@dnv.com

DESIGN

DNV Graphic Communication

PRINT

GAN Grafisk, Oslo

COVER PHOTO

Nina Eirin Rangøy

© Det Norske Veritas 2005

DNV is a global provider of

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Established in 1864, DNV is an

independent foundation with

the objective of safeguarding

life, property and the environ-

ment. DNV comprises 300 offices

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DNV Forumcorporate magazine