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A Need for
Internationalization
One of the challenges for the small and
medium-sized Danish offshore companies is
to achieve an increase in market share of the
orders placed by large international offshore
companies with a requirement of niche solutions.
According to associate professor Svend Ole
Madsen from the Institute of Environment
& Commerce at the University of Southern
Denmark, it will be necessary for companies
to modernize their management- and sales
strategies to be able to compete on the global
markets.
- The Danish offshore companies have over a
period of 20-30 years had a harvest of experience
from exploration and production of oil
from areas with diffi cult access in the North
Sea. This experience has led to huge assignments
internationally, including a 30 billion
DKK investment in Qatar, a 15 billion DKK
investment in depleting
fi elds in the
UK
sector and other large projects all over the
world. But even during this period with great
opportunities worldwide, the small and medium-sized
companies face large market barriers,
if they want to work within the offshore
business, Svend Ole Madsen tells us.
- Basically operators all over the world
require a return on their large investments.
Within normal commercial
theory a payback period
of 5-10 years is satisfactory,
but within offshore the
business is quite different.
The focus is
on quicker or larger
profi ts, due to large
risks involved in
the business, not
the least in areas
with very tough
weather and diffi
cult accessibility.
For the small
and mediumsized
companies
in Denmark,
this puts a high
requirement on
Cubeair is one of the
Danish niche companies,
which has achieved international
attention.
Cubeair produces a
component which prevents
damages in connection with
bursts on high pressure
pipes. Just now the component
is being tested at Danish
offshore installations in
the North Sea. For several
years the component has
been used in the car and
aircraft industry.
their capability to deliver on time and within
scope, as the consequences otherwise can be
large, Svend Ole Madsen continues. Expertise
and knowledge is not enough, the production
and logistical capabilities have high priority.
At Offshore Center Danmark this viewpoint
is well understood. The offshore industry has
always been very dynamic, and the scope of
supply has had to adapt itself constantly to
new international procedures and standards
– but the process is not unmanageable – neither
for newcomers.
If the company is able to re-direct and accustom
itself to the requirements with regards
to international procedures and professional
supply – then the window of opportunity is
really large these years. The international
market is huge, what we see in Denmark
is just a very small portion of the market.
Hence for the serious supplier, this market
has vast possibilities, with a large number of
niches, perfectly suitable for the many niche
orientated Danish small and medium-sized
companies, Peter Blach, Offshore Center
Danmark, states. ■