New Oil Reality - Maersk Drilling

December 2015

Newsletter

Get ready for the

New Oil Reality Two faces of a harsh market: Maersk Guardian is stacked in Frederikshavn, while outstanding performance secures Maersk Discoverer a three-year contract extension with BP in Egypt.

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Learning from the Airlines Preserving the assets for better days Putting Maersk Endurer to rest

Photo: Maersk Drilling

QUARTERLY RECAP

COST SAVINGS:

Full throttle from the rig teams The Profit Optimisation Programme is well on track and is looking to exceed the expectations set for 2015 by 30%. So far in 2015 the lion’s share of effective cost reductions stems from operational savings. There are many contributing factors to this achievement. The new offshore compensation scheme is the single highest contributor so far, yet it is the sum of many initiatives and efforts – offshore as well as onshore – which brings the savings toll as high as this. “The recipe has been to turn every stone – both in relation to what we do and how we do it. There have been some good central initiatives such as riser management, NDT (Non Destructive Testing) reduction and a number of procurement initiatives. In addition to this I am proud to see the all hands on deck mindset in the rig teams challenging every dollar we spend”, explains Claus Bachmann, Deepwater Asset Manager. Other savings come from sourcing improvement towards suppliers, insurance optimisation, changed travel and training policies, HQ refit, fewer and less costly overhead projects and reduced use of external consultants.

Maersk Viking’s first year Since the start of operations on 6 July last year, Maersk Viking has had an operational uptime of no less than 99%, and is currently one of the front-runners when it comes to Maersk Drilling’s consolidated rig KPI score. Maersk Viking started operations in the Gulf of Mexico last year on ExxonMobil’s Julia project. Maersk Viking and her crew have been delivering an outstanding performance ever since.

Shorter skirts for the Giant Strong forces had managed to twist and bend some of the inner and outer skirts – ‘spudcans’ in oil-industry lingo – on one of Mærsk Giant’s ‘feet’. “During a routine inspection of the two aft spudcans during the voyage from Norway to Nini in the Danish sector, we discovered that we were unable to empty the water out of one of the spudcans,” explains Harsh Environment jack-up Asset Manager Per Gobel. After a yard stay near Rotterdam, Mærsk Giant is now on assignment in the Danish sector of the North Sea, where she is working for Danish energy utility DONG Energy on the Nini and Siri fields for 150 days .


Maersk Discoverer takes the lead in Egypt Maersk Drilling has been awarded a three-year contract extension for the ultra-deepwater semi-submersible Maersk Discoverer with oil major BP. This means that Maersk Discoverer will be working offshore Egypt until August 2019. In a difficult marketplace with very few fixtures, this contract extension is a remarkable achievement which Unit Director Thomas Falk attributes to the successful collaboration between BP and Maersk Drilling and the impressive operational results achieved with the Atoll well and the West Nile Delta drilling programme.

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Maersk Drilling Newsletter 02·2015

WORDS FROM THE CEO

Social media

Photo courtesy of Henrik Dalgaard Larsen

We have yet again received a lot of great stories and pictures. Thanks to all of our Maersk Drilling employees and follow ers, across our social media channels for contributing. Remember to share your offshore moments with the rest of us, by simply tagging them #maerskdrilling on Instagram or by sending a personal message on Facebook.

Photo courtesy of Clet John Penney

A captain signing off. Enjoy the retirement Peter Mason and thank you for all the good years. #MaerskValiant #Offshore #SigningOff #Retirement #ThanksForAll

Photo courtesy of Henrik Sonne

Thunderstorm crossing paths with Maersk Voyager. #MaerskVoyager #Thunderstorm #Drillship #Ghana #OffshoreLife

Video courtesy of Preben Nielsen/E-frame

Crewmember heading for Maersk Integra tor. #MaerskIntegrator #OffshoreLife #NorthSea #SunnyDay #Crew

Video time-lapse of Maersk Guardian arriving in Frederikshavn, Denmark. #MaerskGuardian #BackInDenmark #Frederikshavn #OffshoreLife

Follow us on social media: facebook.com/maerskdrilling Instagram.com/maerskdrilling linkedin.com/company/maerskdrilling

Claus V. Hemmingsen, CEO of Maersk Drilling, Member of the APMM Group Executive Board

FOCUS ON REMAINING COMPETITIVE

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n November, Maersk Drilling announced the third quarter result for 2015. Strong safety and operational performance and good progress on our profit optimi sation programme are the drivers behind a satisfactory result. Achievements that we can all be proud off. For a long time the many, long contracts we signed in a booming market, when the oil price was high, have enabled us to maintain a satisfactory profitability. However, the new oil reality with over-supply of rigs and a very low demand is starting to show – also for Maersk Drilling. We have 11 rigs that either need to be re-negotiated in 2016 by extensions, as we cannot expect options to be declared, or need to have new contracts secured. Under the current conditions we must expect increased idle time due to the market downturn. The only way to navigate the challenging market is to focus on our operational excellence, watch our costs and keep our customers satisfied. This means high uptime and zero incidents. We cannot control the market, but we can control how we operate. We need to stay calm and finish strong. We have seen excellent performance so far in 2015, and we need to sustain this. Then we will ensure a foundation for our business that paves the way for new contracts and employment for our rigs in this fierce competition. In this edition, we have packed the Newsletter with stories that focus on some of the challenges the new oil reality throws at us. We followed Maersk Endurer on her last journey for recycling. Furthermore, we took an in-depth look at how yard stays can be optimised and thereby deliver a solid contribution to our cost efficiency programme and we investigated how the stacking of Maersk Guardian was planned and implemented. Finally, you can find out what a “fairing” is.

twitter.com/maerskdrilling

Enjoy your reading, and stay focused, stay safe! Maersk Drilling Newsletter 02·2015

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Photo: Woldcam/Total E&P Norge

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major milestone has been reached with the clean-up and testing of the first three Martin Linge oil wells in the North Sea. Between August 2014 and September 2018, Maersk Intrepid is on contract with oil major Total. Intrepid is assigned to explore the vast Martin Linge field in the Norwegian part of the North Sea – an oil and gas discovery that was made in 1975. The clean-up of the wells represents the first production testing of the Frigg reservoir, which is part of the Martin Linge field. It will give an indication of the potential production rate of the wells when the field comes on stream in 2018. A clean-up means the activity to flow the well. This is achieved by removing any drilling fluid left in the hole and to have the well column filled by pure crude oil which will be heading back to the surface. The well is flowed through a complex well test system consisting of a choke manifold and separators. The oil and gas produced is lead to the rig burner booms in order to determine the flow potential of the well. The three oil wells have long horizontal drains into the reservoir. The Frigg oil reservoir is situated 1750 metres below sea level, and the longest horizontal drain is at a depth of almost 2000 metres. The Martin Linge field in the North Sea is situated at a water depth of 115 metres. The field is a highly complex, high-pressure area, consisting of an oil reservoir located at 2000 metres depth and a sizeable gas reservoir at 4000 metres depth.

Milestone Reached in the North Sea Maersk Intrepid is exploring the promising Martin Linge oil field, 42 kilometres west of the Norwegian coast. By Nicolai Ostergaard

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The replacement of all four cylinders on the port side crane on Mærsk Deliverer was a complex task. Each cylinder weighing up to 13 tons. On the picture, one of the rigging teams has just removed the last cylinder pin, and they are now preparing to lower down the cylinder to deck.

Learning from the

AIRLINES

How to shorten the most expensive yard stays as much as possible? Perhaps the airline industry can provide part of the answer. By Nicolai Ostergaard

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n the quest for fewer and more efficient yard stays, Maersk Drilling is looking to the airline industry for inspiration. “Pushed back by fierce competition, the legacy carriers had to rethink their maintenance programs quite radically. They’ve achieved some spectacular results, and they’ve managed to do so without compromising safety. I think we can learn a lot from what they’ve done,” says Head of Fleet Maintenance Mangement, Deep & Mid Water, Morten Moller Pedersen. In the deep-water segment, he is aiming for a future that features a much-reduced need for yard stays even for the most sophisticated floaters. And the current model, which involves comprehensive five-yearly overhauls, is definitely on its way out and into the history books. Instead, the department will establish a rolling maintenance schedule for the Deep & Mid Water fleet. In short: there will be a smooth flow of maintenance work during the Maersk Drilling Newsletter 02·2015

year, some of which will involve some limited but planned interruptions in operations.

Go Away! Program manager Preben Bostrom is in charge of the project. He is trying to figure out the options for reducing the most comprehensive and most expensive yard stays as much as possible without compromising safety performance and uptime. With that in mind, it should be easy to guess what the name of the project – Project GoAway! – refers to. “In the wake of falling oil prices, we simply cannot afford the usual way of doing things. To be blunt, we want those yard stays to go away.” Traditionally, a rig is taken out of service every five years for a major overhaul. Such an overhaul can involve a workforce of up to 800 people who actually disassemble the entire rig, replace a huge number of parts, and then put the complete structure together again.

“Naturally, this costs a lot of money, and the rig sits idle for several months. We want to do away with this approach,” says Morten Moller Pedersen. But what have the airline companies actually achieved? In the old days, an aircraft was routinely taken out of service for several months for a complete overhaul. It doesn’t work that way any more. Today, an aircraft typically follows a so-called rolling maintenance programme in which recurring overhauls and the ongoing replacement of key components happen in lesser chunks. Typically, the job is done at night, and the aircraft is ready for takeoff the next morning. “The rolling maintenance programme ensures the best possible use of the equipment, and we’re aiming for the same process here at Maersk Drilling. Both the airline industry and the drilling industry are asset-heavy industries that are characterised by fierce competition,” says Morten.


The rolling maintenance programme ensures the best possible use of the equipment, and we’re aiming for the same process here at Maersk Drilling. MORTEN MOLLER PEDERSEN

Unit Director: We can reduce the yard stays considerably Q & A with Peter Dansen, Unit Director, Maersk Viking LLC Aren’t you afraid that this enhanced continuous focus on maintenance issues (instead of leaving these issues until the fiveyearly overhaul) will take its toll, for instance in terms of lower efficiency, decreased uptime, significant disruption of daily operations etc.? Every change comes with risk. When it is mitigated well, the risk could drop below our acceptance level. I’m not concerned that looking at maintenance from the perspective of greater efficiency will jeopardize our focus on uptime. Some of our competi tors are already avoiding yard stays to a large extent. I’m not worried that doing the maintenance differently will reduce uptime. Actually doing the required maintenance is what matters.

9 He admits that the whole idea represents a paradigm shift in a company that is accustomed to regarding the five-yearly overhaul as the chief focus of the maintenance side of things. But there is no escaping the financial realities. “We are in dire need of a change of culture. The company needs to rethink its maintenance set-up and align it with the new business environment. It’s as simple as that,” explains Morten. However, everything exacts its cost. And according to Morten Moller Pedersen, the rolling maintenance programme has both its pros and its cons. The flip side of the coin revolves around risk-taking. “The rolling maintenance programme implies that we need to be less risk-averse and increase our appetite for taking risks.” What does that mean? “The five-year overhaul enables us to examine every single component. We won’t be able to do that anymore. Therefore, we have to live with the risk that something will break down and will have to be repaired on site. Of course, we’ll do everything we can to maintain the equipment properly.

This doesn’t sound like every unit director’s dream? “On the contrary, we’re going to have to change our procedures if we want to survive in this harsh business environment. This will further empower the Unit Directors and enable them to take greater ownership of the equipment during its entire lifecycle. But I want to stress that the new scheme will demand a huge effort from all the departments in the organization. Planning and executing maintenance work will become an ongoing process, and this will call for much deeper collaboration between our departments so that we can utilise all the strengths and combined knowledge we have in-house.” Does this really mean that the traditional once-every-five-years overhaul is about to be phased out? “Yes – at least for the most advanced rigs in the fleet, the five-yearly overhaul will be phased out. For our new drillships, we’re planning a period of 10 years before the first quayside overhaul. Until then, we’ll do the prescribed maintenance on-site.” How much money is the company going to be able to save with the new maintenance scheme? “Our goal is to achieve a cash-flow saving of at least 25 per cent”.

The Go-Away Project Maersk Drilling is forced to change the current yard stay setup and mind-set in order to succeed in the long run. In five years’ time the company will see a new peak of potential yard stays when the drillships are due for five year overhaul and the semi-subs are due for their ten year survey. The impact can be significantly reduced if we think smarter, collaborate across

all departments and work as one team to ensure that we act with Constant Care. The “Go-Away” Project aims at improve our long term planning and optimize the 5 year mainte nance and overhauls and thereby reduce time spent at a yard stay – or completely eliminating the need to take the rigs to a yard. The goal is to achieve a cash-flow saving of at least 25 %.

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In your opinion, and from the operational angle, what should headquarters be aware of in this process if they want to make sure that this process turns out successfully? Everything stands and falls on executing only the required maintenance. A suitable maintenance system purged of all ‘above-andbeyond’ maintenance allows you to do more with the same or less people. Big on-board maintenance projects which involve large equipment need to be prepared for properly, so that they can be executed efficiently offshore.

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What do you see as the most significant obstacles in this process? The time required on the critical path to do the maintenance on some of the equipment. A greater risk of injury, because more out-of-theordinary work will be done offshore. A lot of effort is required to ensure the necessary level of competency and spare parts that are going to be needed for conducting out-of-theordinary maintenance offshore.

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Isn’t it precisely a nightmare for a Unit Director to become part of a future where there is an increased level of risk because the five-yearly major overhaul has been cancelled? It’s important to understand the added risk so that we can miti gate it. 60 days in a yard is also costly.

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Rig stacking has for more than a decade been a rare phenomenon in the oil industry. With oil prices now at a much lower level than they have been, that is about to change. By Nicolai Ostergaard

When Maersk Guardian was towed into Frederikshavn’s harbour on September 21, 2015, it made headlines in the local media: it was the first time the maritime capital of Northern Jutland had had to make space for the stacking of a rig. But what has happened since then? Assistant Asset Manager Bram Nabuurs has been in charge of the working group assigned to prepare for the stacking of Maersk Guardian and carry it out. “Within five days of arriving in Frederikshavn, we were down to our planned manning level of six people,” explains Bram Nabuurs. The last crew members on Maersk Guardian have now been assigned to preserve the equipment aboard the rig. They maintain the critical operational equipMORTEN PILNOV, ment and operate it HEAD OF GLOBAL SALES periodically, running the drawworks, top drive, engines and mud pumps in order to keep the equipment in good condition. “The crew members are in charge of keeping the rig on a reduced-maintenance regimen because of the lower operating hours, as well as critically assessing and reducing the tasks on

It is clear that our rigs are going to experience more idle days in 2016 than we’ve seen in the recent past.

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the maintenance to-do list wherever that’s both possible and appropriate,” says Bram Nabuurs.

More idle days With up to 11 rigs coming off contract in 2016, and in view of a bleak business environment in which rig demand is dropping, here at Maersk Drilling we need to be prepared for the likelihood that not all our rigs will go on a new contract as soon as their old one runs out. This is the message from Head of Global Sales Morten Pilnov. “It is clear that our rigs are going to experience more idle days in 2016 than we’ve seen in the recent past,” he says. Maersk Guardian is not the only rig being stacked at the moment. In Singapore, Maersk Convincer is preparing for what – hopefully – will only be a short period of stacking. Towards the end of December, Maersk Developer will likely run off contract and will arrive in Houston, where it will be stacked until a new contract is signed. Prior to a rig running off contract with no new assignment in sight, the relevant department – Asset team, Commercial, Technical Organization and Finance – will come up with a plan for how to stack it most efficiently, taking into account the market outlook for the rig in question and its probable next assignment. Please explain the procedure: does Maersk Drilling automatically send

an idle rig for stacking if it doesn’t get a new contract within a certain time frame? “When a rig runs off contract, we follow the process in SIRIUS and consider how likely it is that the rig will get a new contract within a certain span of time. During this process we will typically establish some milestones – in other words, potential contracts that the rig will try to achieve. These are windows of opportunity – a chance to win a new contract. If the process turns out successfully, the rig will get a new contract,” explains Morten Pilnov. He continues: “If all these possibilities fail, we’ll start to consider outright stacking. We always begin with so-called utility stacking. This means that the rig is stacked while it is fully functional and ready to leave for a new contract on short notice. So, how far we proceed from idle days to outright stacking depends on the market potential for a new contract in the near future.”

High contract coverage What is the most positive thing you can say about our position in this bleak business environment? “If we compare ourselves with our competitors, we are blessed with relatively high contract coverage for 2016 and 2017. This is immensely significant for us, because it gives us an important foundation for getting through a period of oversupply and very low day rates,” says Morten Pilnov.

Photo: Preben Nielsen, E-frame

Preserving the assets for better days

“Of course, everyone would like the day rates to return to where they used to be in the good old days, but that’s not going to happen in the short or medium term. This industry has been in an upturn for so many years that many people have forgotten a basic fact: this is a cyclical business. We’ve just been in an upturn for many years. Now we have to prepare for a couple of difficult years before things start to improve.”

Lukewarm stacking

We tend to call it lukewarm stacking. We maintain minimum manning without jeopardizing the rig’s ability to get back into operation swiftly when she gets a new contract. BRAM NABUURS, ASSISTANT ASSET MANAGER

In Frederikshavn, the remaining crew members of Maersk Guardian are not living on the rig any more, but staying at a local hotel. This allows the rig to be connected to shore-based power, bringing its fuel consumption down to a bare minimum. According to Bram Nabuurs, the remaining crew is very proactive and finds its motivation in reducing the cost of the daily operations on the rig – for instance, by using the waste heat from the engines to warm the interior of the rig when the engines are running. Then there is the question concerning the mode of stacking. Should we be thinking in terms of cold or warm stacking in the case of Maersk Guardian? “We tend to call it lukewarm stacking. We maintain minimum manning without jeopardizing the rig’s ability to get back into operation swiftly when she gets a new contract,” explains Bram. He continues: “This lukewarm mode of stacking means we can bring the rig back to full operational mode within eight weeks once we get the necessary resources.”

Quick return He adds that the process of making the Maersk Guardian fully operational does not depend solely on the technical state of the rig. It also relies heavily on the crew being available, as the Guardian’s crew members are scattered all around the world. Most of them are working on other rigs in the company, though some have inevitably had to leave the company. So how long is it viable to keep the Maersk Guardian in a lukewarm stacking mode? “This mode of stacking will enable us to react swiftly to any market development at a relatively low cost to the company. This pushes the discussion about the viability of stacking our rigs in the direction it needs to go: what opportunities do our customers have, and how do we jointly ensure that these opportunities are turned into awarded contracts.” Maersk Drilling Newsletter 02·2015

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WHAT IS IT?

Riser pipe

Fairing

Fairings are attached to the drilling riser to suppress vortex induced vibrations of the riser.

Fighting strong currents with

FAIRINGS What are fairings? Fairings are structures that are used to suppress and reduce drag- and vortex-induced vibration (VIV) around a drilling riser. Where are fairings being used? They are being used all over the offshoresector where strong currents are posing

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a risk to the stability of the drilling riser. As such it is not a new technology, but it becomes more and more advanced. What does a fairing protect against? There are strong currents in the waters off, for instance, Africa and South America. When the riser pipe is placed in a

strong current, it may begin to vibrate. Fairings are placed on the pipe from near the surface down to a depth determined by calculation. How does a fairing work? A fairing is basically a wing-shaped plastic element or set of elements which is at-

Photos: VIV Solutions

When the riser pipe is placed in a strong current, it may begin to vibrate. Fairings are placed on the pipe from near the surface down to a depth determined by calculation (left side of illustration). After a cer tain depth, currents drop to one knot or less – a safe speed. The fairings are attached to the outside of the drilling riser, piece by piece. Fairings are designed to freely weathervane around the riser string.

STRONG OCEAN CURRENT

tached to the outside of the drilling riser, piece by piece. The fairing system consists of two main components: the fairing and the load-bearing collars. These components are installed on the drilling riser over the buoyancy modules, and are removable. Fairings are designed to freely weathervane around the riser string, which makes them

self-adjusting in response to any change in the direction of the current. What would happen if the fairings were not installed? The inability to suppress VIV may cause increased fatigue damage to particular riser joints and the wellhead, and will lead to

increased riser drag forces being present in strong-current environments. Under certain conditions, the absence of fairings could lead to reduced uptime and require higher thruster utilization, thereby potentially reducing the profitability of the rig.


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INTERIM RESULT Q3 2015

FIGHTING BACK IN A BLEAK MARKET

Focusing on remaining competitive despite the downturn Maersk Drilling increased the underlying profit by 46 percent to USD 172 million and is focusing on remaining competitive despite the downturn by reducing the cost base and securing a strong contract backlog. Maersk Drilling maintains the expectation of a significantly higher underlying result for 2015 than in 2014

INCREASING REVENUE

(USD 471m) due to more rigs in operation, high forward contract coverage as well as impact from the initiated cost reduction and efficiency enhancement programme, which in Q3 2015 delivered a saving of more than 10% compared to Q3 2014.

ROIC BELOW Q3 2014

Financial performance, USDm

Financial performance, percentage

800

50% 44,0% 646

40%

36,8%

600 525 30% 400 20% 192 184

200

10,7% 10%

0

9,0%

0% Revenue

Q3 2014

NOPAT

EBIT-margin

Q3 2015

Q3 2014

STRONG REVENUE BACKLOG

ROIC

Q3 2015

MOST UNITS FACING CHALLENGES IN Q3

Revenue backlog by year, end Q3 2015, USDbn

Underlying profit by activity

2,0

700

685

Financial highlights (USDm) 600

1,5

500 400

1,0

300

243

224

201

200

175

172 118

0,5

100

79 32

44

0 Maersk Line

0,0 RoY 2015

12

2016


2017

2018

2019+

Q3 2014

Maersk Oil

APM Terminals

Q3 2015

Maersk Drilling

APM Shipping Services

MARKET INSIDE

NEW CONTRACTS WORTH USD 1,1BN DURING Q3 2015

Maersk Resilient CUSTOMER:

Maersk Oil COUNTRY:

Denmark CONTRACT VALUE:

110m USD DURATION:

3 years

Mærsk innovator CUSTOMER:

ConocoPhilips COUNTRY:

Norway CONTRACT VALUE:

A Historic Level of Scrapping Activity Rebalancing the By Timothy Shoup , Strategy and stakeholder Relations global rig market will require the highest level of rig scrapping activity in history. Global Scrapping Cycles (1980-2015YTD) Rigs scrapped

$120

35

142m USD

30

DURATION:

25

16 months

Oil prise (USD/bbl)

40

$100

$80

$60

20

CUSTOMER:

DONG Energy COUNTRY:


28m USD DURATION:

250 days

Mærsk Giant CUSTOMER:

DONG Energy COUNTRY:


16m USD DURATION:

150 days

15

$40

10 $20

5

$0

0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Maersk Resolve

Jack-ups

Floaters

Oil price (USD/bbl)

Source: IHS Petrodata; Thomson Reuters; BP Statistical Review of World Energy 2013

Global oil market downturn continues The global oil market continues to struggle under significant structural challenges. Oil is still trading around $50 per barrel, and oversupply in the oil market is expected to continue until late 2016 or even beyond. Oil companies are focused on reducing all types of costs, including capital spending on offshore drilling. Consequently, global offshore drilling rig utilization levels and day rates have plunged precipitously.

Offshore drillers responding by scrapping

COUNTRY:

As the market is expected to continue to deteriorate, offshore drillers are responding with the highest level of scrapping activity in history. Since mid-2014, offshore drillers have retired 42 floaters and 13 jack-ups. The majority of retirements during this time period have been over 30 years old.

CONTRACT VALUE:

Scrapping cycle is just beginning

Heydar Aliyev CUSTOMER:

BP

Azerbaijan 523m USD DURATION:

5 years

Maersk Discoverer CUSTOMER:

BP

COUNTRY:

Egypt

CONTRACT VALUE:

Undisclosed DURATION:

3 years

Currently, a significant part of the global rig fleet remains over 30 years old, including 42% of jack-ups and 26% of floaters. With continued downward pressure on oil prices, capital spending, day rates, and utilization levels, in addition to the high, still-to-be-delivered number of newbuild orders, further scrapping activity is required to reduce the large number of older drilling rigs still operating in the market.

Rebalancing needs more than scrapping alone While an accelerated scrapping cycle over the next couple years will help bring balance to the market over the long-run, it will not solve the complex pressures of the short-term environment and the continued rig supply-demand imbalance. The lower-for-longer oil price environment means that returning the market to balance will require an unprecedented level of industry discipline with respect to both cost & efficiency initiatives as well as fleet size, age, and composition. Maersk Drilling Newsletter 02·2015

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DECOMMISSIONING

Rig manager Rafal Iwanowski’s job description suddenly took a 180-degree turn, when he was asked to prepare Maersk Endurer for decommissioning. It was a case of learning by doing.

An unexpected

CHALLENGE By Nicolai Ostergaard Photo: Nikolaj Thaning Rentzmann

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E

In good shape

the company had never sent a rig or drillship to the scrapyard. “So naturally there was no-one in the organization to call on for the relevant contingency plan. Add in the fact that we were situated in Cameroon, where routine tasks could suddenly turn complicated. It was a case of learning by doing.” One daunting task was to identify those components which were suitable for reuse or resale. “Soon we were confronted with multiple challenges. Much to our surprise, we discovered that it was almost impossible to buy containers for the components we wanted to keep. Despite the assistance we had from APM Terminals and Maersk Line, we were actually only able to buy seven containers out of the nearly 30 units we needed. It was so complicated that we ended up renting the rest, just to bring the process to an end,” says Rafal.

In 2014 I was in charge of the challenging process of turning Maersk Endurer into a highly effective oil rig. In 2015 the aim was quite the opposite: to close it down and prepare it for decommissioning.

Rafal Iwanowski and his team had managed to get the Endurer into good shape during 2013/2014, following years of minimum-level maintenance prior to the rig’s arrival off Cameroon, plus a period of poor performance: under his leadership, the annual overall KPI score leapt from 13 per cent in 2013 to well above 70 per cent in 2014. But now Rafal Iwanowski found himself rapidly confronted with unprecedented challenges. In the history of Maersk Drilling,

Heavy Congestion

The next problem cropped up in the harbour of the Douala container terminal in Cameroon. The terminal is heavily congested, which meant the team was unable to ship out the containers packed with equipment and spare parts from Endurer. In fact, some of the equipment is still in Cameroon awaiting a vessel departure that has already been postponed several times. On top of that, time pressure was an important factor. Endurer had to bring the valuable components of the rig onshore

Photo: Sea2cradle

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ne consequence of falling oil prices is that decommissioning has become a new reality in the oil industry. Rafal Iwanowski was among the first to experience the precipitous change from ‘the good old days’ to today’s ultra-harsh oil reality. Two years after starting a new assignment as rig manager on Maersk Endurer, overnight Rafal Iwanowski found himself dealing with an unexpected task: to prepare the rig for decommissioning! “My job description suddenly took a 180-degree turn,” says Rafal. “In 2014 I was in charge of the challenging process of turning Maersk Endurer into a highly effective oil rig. In 2015 the aim was quite the opposite: to close it down and prepare it for decommissioning.” “It was a peculiar situation. As the new rig manager on Maersk Endurer, I had fought hard to improve the rig’s performance. Now, suddenly, I was in charge of preparing the rig for recycling,” Rafal explains.

before the arrival of the heavy-lift vessel assigned to take Maersk Endurer on its final voyage. The team had approximately one month to execute the scope of the removal procedures, which was a huge logistical task.

Rafal Iwanowski and his team managed to get Maersk Endurer in good shape during 2013/2014. Then his job description suddenly took a 180-degree turn.

Preparing for Nini and Siri “Among the things we’ve kept are the high-pressure valves, fishing and handling equipment, tubulars, and of course the top drive and the two BOP stacks. Overall, we secured equipment worth USD 9m before Endurer left for China,” explains Rafal Iwanowski. Currently Rafal is the rig manager of Mærsk Giant. He is preparing the rig for its next assignment with the Danish energy utility DONG Energy. The rig contract covers 150 days operating on the Nini and Siri fields in the Danish sector of the North Sea. He does not hesitate when he is asked about the hardest part of the process: “Some members of the Endurer team had to leave the company as a consequence of the shutdown of Endurer. Employment was found for some of the team members, but unfortunately not for all of them. We had a great team, and we achieved great results in 2013 and 2014. And saying good-bye is never easy. But Endurer is now history.” Maersk Drilling Newsletter 02·2015

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DECOMMISSIONING

Putting the

ENDURER to rest

Rotterdam-based Sea2Cradle aims to achieve a recycling rate of 100 per cent when a rig is decommissioned. Its managing director, Tom Peter Blankestijn, explains why the Maersk Endurer’s 150-metre legs were a major source of concern during the decommissioning process.

By Nicolai Ostergaard

An obvious decision? Head of Global Sales Morten Pilnov was a key person in making the decision regarding whether to stack, decommission or sell Maersk Endurer. Was it an obvious decision to decommission Maersk Endurer? “Well, with hindsight it was an obvious decision. However, back then we were not so sure. We investigated several options. Stacking was one realistic solution. And of course we screened the market in order to find a potential buyer for Endurer.” What made you decide to rule out stacking as a viable solution? “As you know, Endurer was a relatively old jack-up rig, and with the way the market was going we couldn’t expect to earn back the required investment within the rig’s expected lifetime. Meanwhile, a number of younger rigs were coming open in West Africa, and there was not a lot of demand among our customers for an old rig that had been idle for a significant period.” Was it really impossible to find a buyer? “We didn’t want to sell for just a nominal amount. Selling too cheap could have meant that the new owner would decide to transport the rig to a beach in Asia for decommissioning. Obviously, we did not want that to happen. Therefore, we fixed a certain threshold price below which we were unwilling to sell. But despite our efforts, we were unable to find a buyer.”

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Maersk Drilling has hired the Dutch consultant Sea2Cradle as the company’s eyes and ears at the ship recycling yard in Zhoushan, China, the Zhoushan Changhong International Ship Recycling Co. A large number of Chinese shipyard workers are currently employed on recycling the Maersk Endurer. The process is scheduled to last until the beginning of 2016. In a segment of the shipping industry that is renowned for its lack of standards and its unhealthy and unsafe working conditions, Sea2Cradle offers its customers a different solution, namely demolition yards which feature accident-free working conditions, proper disposal of hazardous materials without exposing workers, and care for the environment. According to Sea2Cradle’s managing director, Tom Peter Blankestijn, it is now possible to recycle more than 95 per cent of a merchant ship or a rig. But in the future, the company aims to achieve a recycling rate of 100 per cent. Is dismantling a jack-up rig like Endurer a normal task for your company? “Yes, for the greater part this is routine business for us. A traditional merchant ship and a jack-up rig have a lot in common: in both cases, there’s a large amount of steel and some hazardous materials that need to be recycled. But there are, of course, some significant differences. The 150-metre legs caused us concern, and we had to discuss and agree in detail a special plan with the recycling yard for dismantling them safely.” What was the solution? “The concern was their height. We did not want the workers to climb up high and start cutting. We also wanted to avoid any use of the uncontrolled gravity method. Our planned

Photo: Sea2cradle

Sea2Cradle expects that 98 % of Maersk Endurer can be recycled. Dismantling a jack-up rig is more or less a routine job for the company.

solution is to place the structure in a dry dock on blocks, then to lower the legs two metres at a time and cut them off in stages. Then this will be repeated and repeated and repeated until the height is no longer a problem, and at that point a gantry crane will be able to reach and lift a longer section of each leg and bring all of them onshore.” Have you encountered other challenges so far? “We had some worries about asbestos. When we were drilling the concrete flooring, we needed to make sure that no layer of asbestos had been used in the past to prevent fire from spreading quickly. Luckily no additional problems came to light, but it’s better to be safe than sorry.” What does the concept of recycling mean when it’s applied to a rig? What are the main components, and how will they be recycled? “Some parts will be reused, like some generators and life rafts, if their certificates are still valid. Steel and aluminum are remelted and used for new products. So is the copper from the cables on board.” Looking at the history books, how did the drilling companies traditionally decommission their oil rigs? “Not many rigs were dismantled in the past. Most of the

oil companies and the operators were pushing to get the maximum lifetime out of their units. If they actually decided to dispose of a rig, they followed the same traditional method of recycling, and that mainly meant either doing it locally or on the beach if this was operationally possible. No structural planning or procedures were followed to guarantee anything resembling the HSEQ standards we are after today.” Does it still happen that oil rigs get towed onto beaches in Bangladesh for “traditional” decommissioning? “Maybe. We are not involved in such practices, as we do not believe that aiming for zero pollution, zero accidents and zero incidents is at all possible in those circumstances.” What do you think will happen in the future? “With the oil prices as low as they are and these units being quite old, we expect many, many more to follow. Not only will a growing number of jack-up rigs go for demolition, but the floating drilling units are also soon going to be phased out in greater numbers.” How large a percentage of the Endurer can be recycled? “We expect it to be close to 98 per cent.” Maersk Drilling Newsletter 02·2015

17

A lonely final journey Accompanying Maersk Endurer on its final voyage from Africa to Asia was more lonely and gruelling than Kim Leth Andersen had expected: scorching heat and monotonous food caused him to lose 15 kilograms.

By Nicolai Ostergaard. Photos: Kim Leth Andersen

This summer, Offshore Installation Manager Kim Leth Andersen was assigned to what was a highly unusual task for the company. Maersk Endurer had ended its contract in West Africa, and was about to make its final voyage to China for decommissioning. Because of contractual obligations, a representative from Maersk Drilling had to be present on board the Chinese heavy lift ship to look after the rig. Kim Leth Andersen accepted the job.

There were 29 Chinese seamen and me. Only a few of the crew members spoke any English.

53 days at sea

He embarked in Equatorial Guinea on July 13th and disembarked in Zhou Shan, China on September 3rd – a total of 53 days at sea, travelling at an average speed of approximately 9 knots. The journey took Kim and Maersk Endurer south of Africa, west of Madagascar and through the Strait of Malacca. “There were 29 Chinese seamen and me. Only a few of the crew members spoke any English,” Kim recalls.

18


He lost 15 kilos on the trip. “Normally I’m a great fan of Chinese food, and as an old seaman I don’t consider myself squeamish. But on this trip the menu got very monotonous very fast. According to the captain, the last provisioning of the ship took place just before they left Shanghai heading towards Europe. We had fish soup for breakfast, and fish soup for lunch. Dinners consisted of boiled duck, rice and seaweed. We were served small pieces of potato on the first six days, but except for that the menu didn’t change for the 53 days that the voyage lasted,” explains Kim. Luckily, his personal provision included 7 kilos of protein powder, which helped him through the journey. He would often wake up in the morning feeling hungry. And since he didn’t feel like eating fish soup for breakfast, he would mix up a 300-ml protein-powder shake. “I was not starving at all, but I was desperate for some variety,” recalls Kim.

Helping the cook During the trip he was approached by crew members who often showed an interest in spare parts or other desir-

able items that might be useful to them. Two weeks into the voyage he was approached by the second cook, who said he was short of supplies for cleaning pots and pans. “The equipment he was using was old and worn-out. The pots and pans were all blackened, and they were really too far gone to be used. As for the food, he didn’t have many provisions to work with.” Kim says. “One day, I took him on a guided tour aboard the Maersk Endurer and showed him its galley. Looking around, we found some useful stuff, and he left with several pots and pans, some brushes and some steel wool – a magnificent upgrade of his kitchen equipment. That really made his day.” As Maersk Drilling’s representative on board the heavy lift carrier, Kim Leth Andersen was in charge of monitoring the Maersk Endurer during the journey. The rig was the property of Maersk Drilling until its arrival in China and its subsequent transfer to the Chinese shipyard that was in charge of the decommissioning process.

Daily reports He made daily reports to the company concerning the rig’s position, speed

Kim Leth Andersen spent 53 days at sea. The average speed was 9 knots.

and estimated time of arrival. As Kim had been issued with a handheld satellite phone, three weekly calls to Maersk Endurer’s rig manager were also on his agenda. “On top of that, I did daily potential dropped objects-inspections on the rig in order to prevent potential dropped objects from presenting a hazard to the Chinese crew. An older rig like Maersk Endurer starts to behave a bit differently when it is lifted out of the water and onto the deck of a heavy lift ship that is moving with the waves. It was also my duty to observe and prevent any components starting to fall off. The ship’s crew was shuttling back and forth to the foreship, so a dedicated route was worked out. ” According to Kim, it takes a lot of discipline to cope with idle days that continue for such an extended period, so it is necessary to set a daily agenda. “So not long into the voyage, I challenged the officers to perform celestial navigation using the sextant and other methods which seem to have been dropped from daily bridge activities. The sextant was damaged, and we had to adjust the mirrors. So we did that, and during the voyage

we maintained daily observations by “shooting the sun”, and during the late dusk, the stars. It was fun to get reacquainted with the stars Pollux, Deneb and Castor.” On arriving in Zhou Shan on September 3rd, Kim disembarked and left for the hotel, where he met up with the Tow Master, Morten Halkjaer. Throughout the voyage he had been maintaining weekly contact with Morten regarding the planning and the offload procedures, as well as preparing for the latter. “It was a very nice feeling to arrive at the downtown Hilton Hotel, and to stand in the lobby thinking ’We’re finally here!’.”

Heavenly feeling Sitting in the restaurant the same evening, he ordered his first meal following his rebirth as a landlubber. It consisted of a large plate of sushi, a mixed green salad, and various other side dishes. “It was a heavenly feeling to experience once again the variety of tastes which I had almost forgotten during the long journey,” he recalls. Early on the morning of the 5th of September, the Maersk Drilling crew sailed out to the heavy lift ship

in order to offload Maersk Endurer. At 08:10, the mighty Maersk Endurer was officially handed over to the recycling facility by the Tow Master, Morten Halkjaer. The voyage from Equatorial Guinea in West Africa to Zhou Shan in China, which had covered 10,790 nautical miles in 53 days, was over. It was time to go home. “To leave Maersk Endurer for the last time and see her disappear as we sailed shoreside made me feel kind of sad. For the past three years, I have worked with the finest, most loyal and most dedicated people, who were a part of the transition from the difficult year of 2013 into the successful one of 2014 in terms of both safety, performance and the attainment of set goals. I am proud to have participated in these achievements, and — not least — to have been a member of the Maersk Endurer team. This was a different assignment, but a great experience.”


19

FROM THE GULF OF MEXICO

Houston calling:

The energy capital of the

“Houston is regarded globally as an oil town, and given the current market conditions it would be easy to assume that the city’s economy is in free fall.”

20


world is slowing down By Steve Schappell

A

Tale of Two Cities could be the book title that describes Houston right now. Houston is regarded globally as an oil town, and given the current market conditions it would be easy to assume that the city’s economy is in free fall. For those of us who work in the oil and gas industry, the anxiety is palpable. When we meet fellow workers in the industry, talk quickly turns to the stacking of rigs and a further round of layoffs in the city. The statistics offer no relief: a 59.2% year-on-year reduction in the number of operating rigs in the US and a 62.8% reduction in oil exploration do not generate much enthusiasm. Given these numbers, it makes no sense for construction cranes to be as common a sight as mosquitos in our city, which is built on a swamp. An oil town must surely suffer through this market. Ask anyone who was here in the 1980s, and they’ll tell you about vacant homes and the exodus of people from the city.

Energy is the driver

one year into operation on strong contracts, driving high uptime and revenues. On the other side is the Developer, which is coming off contract with very few work prospects in the Gulf of Mexico. Much like Houston’s response to the downturn in the 80s, at Maersk Drilling, USA we are urgently reviewing our policies and procedures to ensure that we are fully prepared to weather this storm. We must build an organization that will not only be able to get through it, but will have the capability and capacity to grow after the market changes. It seems clear that the Gulf of Mexico will be the first region to drill a 20k well, and our team has to be poised to move quickly into this new frontier and beat the competition.

Hoping for change

Mix of people Given all the negative news, it would be natural to assume that a black cloud must hang over the city. Yet that is not the case. I believe that the diversification of the citizenry has helped Houston just as much as the diversification of its economy. A surprising 23.1% of Houstonians are foreign-born. The mix of people having diverse backgrounds and experiences means that Houston’s atmosphere is ever-changing. Maersk Drilling, USA seems to be a microcosm of Houston’s situation. On one side is the positive story of the Viking and Valiant, which are

Given the resilient nature of Houstonians and the cyclical nature of the oil industry, one can only hope the current situation matches the local weather in the spring: “Just wait a little while and it will change”. As I look out through my work window and watch the ongoing construction of the new Phillips 66 global headquarters and a high-rise apartment building across the street, I can only pause and think, “We are Houstonians. Not only will we get through this, we will come out of it even stronger”.

Photo: Henry Han

But Houstonians are resilient, and they have been determined not to allow a repeat of the 80s. Many think of Houston as the energy capital of the world, and with 4.2% of the population working in the oil and gas industry, that sector is certainly the leading economic driver. However, the city has been able to diversify its economy by expanding the manufacturing, chemical and health care in-

dustries over the past three decades. Houston’s port is also the largest one in the region, handling over $250 billion in imports and exports annually. To put it in GDP terms, at $525.4 billion Houston would have the 26th largest economy in the world, behind Belgium and ahead of Norway. Although the diversification has helped, there is no doubt that Houston is still an energy town that depends on the oil and gas industry to drive its long-term economic success. Houston’s economy has slowed from a growth rate of 6.5% in 2013 to 1.8% in 2014. Estimates for 2015 range from 1.5% to 3%. The slowdown reflects the direct impact of the oil price on the Houston economy. Without the diversification of the last 30 years, these figures would be significantly worse.

Who’s who Steve Schappell is Location Director at Maersk Drilling, USA. He has been with Maersk for more than seven years. Before joining the Maersk Group Steve spent ten years in the US Army. In Maersk he spent three years in procurement roles supporting US flag vessels, two years as a program manager in Japan overseeing a maintenance and procurement program, two years as Head of Supply Chain, Americas, supporting Maersk Drilling. Steve has been Location Manager Maersk Drilling, Houston for five months.


21

PERSONAL

Offshore Promotion List

Anniversaries

17/10/15 Bo Johan Mattias Ottosson promoted from Assistant Marine Section Leader Trainee to Assistant Marine Section Leader, Waiting Pool

40 Years 01 September Hans Christensen, Operations.

26/08/15 Charles Velie promoted from Senior DPO, Maersk Developer, to Assistant Marine Section Leader, Maersk Developer 23/09/15 Alexander Heil promoted from Marine Section Leader, Maersk Developer, to OIM, Maersk Developer

25 Years 01 August 09 August 03 September 05 September 01 October 01 October 08 October 09 October 17 October 07 November 08 November 14 November 19 November 21 November 13 december 14 December 18 December

Marianne Sorensen, CFO, Finance. Brian Kennedy, Maersk Integrator. Frank Eliassen, Operations. Jesper Hansen, Maersk Interceptor. Jan Franch Pedersen: Maersk Interceptor. Jens Lehmann Sorensen, Maersk Galant. Nigel Robinson, Waiting Pool. Jorgen Nielsen, Maersk Intrepid. Jarle Halvorsen, Mærsk Innovator. David Swanton, Mærsk Innovator. Lars Tynaes, Operations. Kaj Krabbe Nielsen, Operations. Bjarne Jorgensen, Marine Department. Jesper Wobbe, Maersk Integrator. Per Wetting, Operations. Jesper Krabbenhoft, Maersk Integrator. Hieu Trung Pham, Coating.

Ready for the job! How is the HR department at Maersk Drilling navigating the current low visibility market in the oil industry? The newly appointed Head of HR, Lene Reitzel, is ready to take on the challenge. “I am very excited to join Maersk Drilling, and I am currently getting re-acquainted with the organisation,” Lene Reitzel says. She continues: “I am also aware that I am joining the company at a difficult time for the industry where we are having to navigate low visibility.” Since 2013, Lene has been the Head of HR for Maersk Tankers and a member of the Maersk Tankers Executive Leadership Team. Before that, she spent 11 years with Maersk Drilling, most recently as the Head of Organisational Development and Compensation & Benefits. She started her career with the Maersk Group in 1989 as a Shipping Trainee. How can HR help the company to adapt to the new oil reality? “The low oil price has changed the scope of our work in the HR department. My predecessor, Jesper B. Madsen, successfully began the process of setting the organisation up for the totally new oil reality we find ourselves in today. I intend to continue where he left off,” says Lene Reitzel. “I see HR’s role in this process ensuring that Maersk Drilling has the organisation and people required to succeed both now and in the future – in other words, we are taking care of today, while actively preparing for tomorrow. But it is still too early for me to be able to identify all the factors that will enable us to achieve a match with our current and future needs.” Lene Reitzel joined Maersk Tankers after it had endured years of cutbacks, at a time when its HR depart-

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ment was starting to rebuild the organisation using a new strategy. Are you confronted with a similar challenge in Maersk Drilling? “In some ways. Maersk Drilling is having to adapt to a challenging market, and HR is a vital pivot for defining the transition and helping to maintain employee engagement at a high level during this journey.” What is your impression so far? “My sense is of a cohesive organisation both on- and offshore that is committed to delivering quality service, and which is also widely recognised for doing so by our customers,” explains Lene Reitzel.

Lene Reitzel Lene Reitzel started her career in the Maersk Group in 1989 as a Shipping Trainee. She spent 11 years with Maersk Drilling, latest as the Head of Organisational Development and Compensation & Benefits. From 2013, Lene was the Head of HR for Maersk Tankers and a member of the Maersk Tankers Executive Leadership Team. In her free time, she enjoys a good workout and spends a fair amount of time watching her two sons aged 14 and 17 play football all across Zealand on the weekends.

5

3,0

SAFETY UPDATE

4 2,0

3 2

1,0

1

LTI

TRC

Oct-15

Sep-15

Aug-15

Jul-15

Jun-15

May-15

Apr-15

Mar-15

Feb-15

Jan-15

Rolling 12 month trend

Dec-14

Nov-14

0 0,0 2015 IADC Aligned Safety Performance as of end October

LTIF

Rolling 12 month Actual vs. Target

TRCF

MD LTI &TRC

Counts

Freq.

55

3,0 3,0

3,0

2,0 2,0

2,0

1,0 1,0

1,0

0,0 0,0

0,0

44 33 22

2,16

LTI

TRC

LTIF

oct. 15 Oct-15

sep. 15 Sep-15

aug. 15 Aug-15

jul. 15 Jul-15

jun. 15 Jun-15

may 15 May-15

apr. 15 Apr-15

mar. 15 Mar-15

feb. 15 Feb-15

jan. 15 Jan-15

nov. 14 Nov-14

00

dec. 14 Dec-14

11

0,51 TRCF

LTIF

TRCF

2011-2015 YTD LTI and TRC Frequencies

High Potential Incidents By Asset Team

LTIF

TRCF

Linear (LTIF)

Linear (TRCF)

2

2

6,00

DeepWater 4,92

5,00

Harsh Env. J/U

4,73

International J/U

4,00 3,00

4

3,08 2,48

2,00

2,23

1,40

1,12

By Type

1,00

1 0,37 2011

2012

2013

0,57

0,37

2014

2015 YTD

1

Marine Operations Maintenance and Technical Modifications

2

Transport 3 1

Well Control Incidents Critical

Serious

Regular

Drilling/well activities Other Process

Safety Performance comments

Counts

4,5

44 3,5

• Improved TRC and LTI frequency trends when looking at rolling 1 year or 5 year overviews.

33

3

2,5 22

2

4

2

• No well control incidents since the launch of the revised Well Control Manual that integrates Human Factors into the procedures

1

1,5

1

1

1

1

1 jun. 15 jun./15

1

may 15 maj/15

11 0,5

1 oct. 15 okt./15

sep. 15 sep./15

aug. 15 aug./15

jul. 15 jul./15

apr. 15 apr./15

mar. 15 mar./15

feb. 15 feb./15

jan. 15 jan./15

dec. 14 dec./14

nov. 14 nov./14

00

• 54 “perfect” days (2015 YTD) of incident free operations across the entire MD fleet – includ ing all incidents (w/ first aid cases) and near misses

Recordable Incident details since last update DATE

UNIT/LOC

INCIDENT

BRIEF DESCRIPTION

09-October 2015

Maersk Viking

MTC

Left thumb injury while rigging up outer solid body elevator


23

KPI CORNER

97% Operational

uptime

in Q3. For floating rigs the uptime was even higher, 98% versus 96% in Q3 2014.

Retention

Our customer satisfaction score of

6.3 in October 2015. The score was 6,2 in 2014, but 6.4 in Q1 and Q2

89.45%

ONSHORE

97.5%

OFFSHORE

in Q3 2015. The offshore retention rate is at a very high level. It was 94.7 in 2014.

Contract coverage

36.8%

85% 70%

was the Q3

EBIT margin A decrease from 44% in Q3 2014. But well above the 28.6% for 2014.

Published by: Maersk Drilling Esplanaden 50 DK-1098 Copenhagen Tel: +45 63 36 00 00 Fax: +45 63 36 31 82 Mail: [email protected]

49% 2015

2016

2017

With the current pipeline of contracts we have solid contract coverage for the coming years – especially in the light of the bleak market conditions expected in 2016.

Volume 29, No. 2 · December 2015 Editor: Nicolai Østergaard. Tel./Fax: +45 23 27 87 55. Mail: [email protected] Design & production: Datagraf Communications Copies: 5,000 Deadline next issue: January 2016

This Newsletter is published for the employees, retirees and business connections of Maersk Drilling. The NewsLetter is printed on Forest Stewardship Council (FSC) paper. Reproduction permitted only after agreement with the editor.