Many SMEs in northern Finland and Sweden have indicated interest in participating in the Norwegian petroleum industry. Fewer companies have realised business opportunities. There are many factors that influence successful business development, and a long-term strategy is required to succeed.
From around 2013 there were changes in the global market that led to a reduction in the oil price, down to a low of US$27/barrel. Coupled with a lower success rate in exploration for new reservoirs this resulted in a reduction of 50 000 jobs in the Norwegian petroleum industry. The lower activity level made it challenging for new entrants in the industry. However, in 2018 the oil price has risen to €80/barrel and optimism and activity is returning.
In contrast to other countries, Norway succeeded in becoming rich from the petroleum resources. In large part this was due to a strategy of restricting the rate at which new exploration licences were awarded, and requiring involvement of local companies in licences held by foreign companies. This assisted with the development of local competence. An overview of the development of the Norwegian Petroleum Innovation is given in an article from 2007. To some extent this strategy is still practiced as the petroleum industry moves northwards – with expectations of involving local companies. For example the development of the Goliat field in Northern Norway resulted in a 10 MNOK project that studied the regional ripple effect of the development in the region. The findings from this project are presented in a report and summarised on the web page. The Goliat installation was found to have given local and regional employment for 440-460 persons and an increase in local activity (goods and services) of 1,2 billion NOK.
Advantageous for SMEs
From many studies of involvement of SMEs in the petroleum industry it is found advantageous for SMEs to form a consortium with other SMEs in order to achieve the critical mass that is required to succeed with deliveries to the sector. The challenges include the quality assurance systems that must be adhered to, and the requirements for financial strength required by the industry. An overview of the supplier industry in Northern Norway is presented here, which contains an overview of the companies involved in different parts of the industry, as well as projects for the expected developments in the different regions of Northern Norway.
Ross Wakelin
Northern Research Institute Narvik A.S.
ross@tek.norut.no , (47) 99 252 485
