Danish offshore sector under pressure
OFFSHORE: The Danish offshore industry is in the process of adjusting from feast to bottleneck. The business is struck by both the financial crisis and the abruptly dropping oil prices, and many companies feel a growing gap between orders.
"You could say, that after seven great years, poor years with increased competition over fewer jobs follow. We have to fight while at the same time looking at costs. For instance, large oil companies in Norway have sent letters to all their contractors and asked them to lower the prices with 30 to 35 percent, which has attracted considerable attention. But we have to live with the fact that supply and demand fixes the price", says Verner Andersen, new constituted chair of the business association Danish Offshore Industry under Danish Industry.
Both engineer- and entrepreneur companies in the oil and gas sectors are generally receiving less requests than just six months ago. But the market has not stopped completely. The more than hundred platforms in the North Sea, needs service and maintenance. Furthermore, hundreds of projects have been started worth billions of crowns, which have been unstoppable despite the abrupt drop of oil prices.
Verner Anders is 55 years old and area account manager at the engine contractor Pon Power. He replaces Kai B. Olsen, who has been the chair of Danish Offshore Industry since the founding six years ago. Kai B. Olsen has since the turn of the year been area manager of Ramboll Oil & Gas' new British department in London.
Verner Andersen will consider, until the ordinary general meeting of Danish Offshore Industry in June, whether he wants to be permanent chair of the association, consisting 22 members.
Source: erhvervsbladet.dk
