Annual Report 2017 - oilgasdenmark.dk · I hope that Tyra is just the beginning. The North Sea...

Annual Report

2017

TOTAL

20 17

Table of contents4/ Foreword

5/ Board of Directors

6/ Chairman, Statement

7/ Vice Chairman, Statement

8/ Core Activities 2017

Sector Competitiveness

Health Safety and Environment

Skills and Capabilities

13/ Communication and External Engagement

OGD Communication

Legal issues and public hearings

Partnering and recognition

Publications

International engagement

18/ Network, Meetings and Conferences

22/ Organization

24/ Current Members Oil Gas Denmark

27/ Financial Performance 2017

28/ Committee, Subcommittee and Workgroup members

30/ Employees

Annual Report 2017 — Oil Gas Denmark 3

2017 has been an eventful year. Following three years of severe decline in oil price, investments, jobs and other in-dications that the industry was not in good health, 2017 set a new agenda:

First of all the North Sea Agreement in March secured full redevelopment of Tyra. The agreement underlined that incentives for the industry and increased state tax income go hand in hand.

A couple of months later, Minister for Energy, Utilities and Climate, Lars Christian Lilleholt released the North Sea Strategy. The entire industry put a lot of effort in this work, and the main conclusions are clear: There is a great potential of oil and gas in the Danish part of the North Sea. We still need the energy, self-suffiency is a huge ad-vantage for Denmark, and these are the reasons why we as an industry and society need to identify and reduce the barriers standing in the way for recovering that full potential to the benefit of both. To this came a significant consolidation in the industry with new operators in the Danish North Sea.

The finalization of the North Sea Agreement and the North Sea Strategy led to the internal process of looking into the need for an updated version of Oil Gas Den-mark´s strategic priority. Five years have gone, the situ-ation in the industry has changed dramatically during those years. Thus, a process was initiated with an online survey among OGD members, followed up by input from the Annual General Meeting 2017 and further to that a strategy day for the Board of Directors. The overall con-

clusion that came out from months of work was: OGD still did most things right – but we needed to enhance our effort on sector competitiveness and image building. The results from the entire process was presented at Council meetings in January 2018.

Late April 2018, the Government presented the long- awaited proposal for the forthcoming energy agreement. The agreement, when adopted by the parliament, will de-fine the Danish energy policy in the coming years. This shows that there is no contradiction between production of oil and gas and the need for a green energy transition. On the contrary, oil and gas are needed for years to come as energy sources and can serve as a financial supporter for the energy transition.

Of key achievements I will mention a few. The adoption of the OPITO standard is one of them. The safety train-ing standardization is a huge achievement which, as an international standard, will contribute to an aligned safe-ty awareness and make it easier to hire and work across countries without the need for additional safety train-ing. Another is the extended collaboration with the ed-ucational sector – regarding both upper secondary high school and the universities. Regardless of the actual need for hiring, we always face a structural issue that all sectors are competing for the same few.

We are looking forward to our collaboration with our members in the next many years to come. Thank you for your dedication and support.

Martin Peter NæsbyManaging DirectorOil Gas Denmark

New agenda

Oil Gas Denmark — Annual Report 20174

Foreword by Martin Næsby, Managing Director

Board of DirectorsTroels AlbrechtsenVice President, Copenhagen Offshore Production Line, Mærsk Olie og Gas A/S a Company of TOTAL,Chairman of Oil Gas Danmark

Troels is Vice President for the Copenhagen Offshore Product Line in Mærsk Olie og Gas a Company of Total. He holds an MSc in Geology form Copenhagen Univer-sity. Troels has held several managerial positions with Maersk Oil in UK, Qatar and Denmark.

Verner AndersenVice President, Semco Maritime,Vice Chairman of Oil Gas Denmark

Verner is VP of Semco Maritime’s Operation Support Division. His background is an Electrical engineer. He joined Semco Maritime after having held several mana-gerial positions in various offshore companies in Scan-dinavia. He is also member of the Board in offshoreen-ergy.dk and Esbjerg Petroleum & Renewables Club.

Anders NymannDirector, Hess Denmark Aps

Anders has an MSc in Engineering from the Technical Uni-versity of Denmark and has worked in various offshore and onshore roles for Hess in the UK and Denmark.

Christian KrügerVP, Global Account Management, Welltec A/S

Christian is VP, Global Account Management of Welltec. His background is an MSc in Geology from the Universi-ty of Copenhagen. He has more than 30 years of experi-ence from the oil & gas industry and has worked both in the field and in managerial positions around the world.

Flemming Horn NielsenCEO. INEOS Oil & Gas Denmark

Flemming has an MSc. in Mechanical Engineering from the Technical University of Denmark. He has 28 years of industrial experience and has held a number of tech-nical and managerial positions offshore and onshore in Denmark, UK, Qatar and Holland with DONG Oil & Gas and Maersk Oil.

John SørensenExecutive Director, Ramboll Energy

John has more than 30 years of experience from the global oil and gas industry and is a key contributor to driving Ramboll’s growth within the energy market. Ramboll currently has nearly 1500 energy experts across 46 offices in 14 countries.

Lee HodderVice President Upstream Denmark, Country Chairman – Denmark, Greenland Shell

Lee has been the Shell Country Chairman for Denmark, Greenland, and the Vice President for Upstream Den-mark since February 2017. He joined Shell in 2006 and has previously held roles in Qatar, The Netherlands and Norway in addition to working on opportunities related to Sub-Saharan Africa and Australia. Lee holds a BSc in Chemical Engineering from Qatar University, an MBA from Harvard Business School and has also spent time at George Washington University.

5Annual Report 2017 — Oil Gas Denmark

Board of Directors

2017 has been one of great significance for the Danish oil and gas industry – from offshore workers 200 kilometres away from the Danish Westcoast to suppliers

in Esbjerg and academia on Danish universities – everyone is playing a role and adding value to Denmark.

Highlights like the North Sea Agreement; a new North Sea Strategy; and not least a renewed interest in the potential of the North Sea with new significant investments and two of the three main operators being acquired by international companies evidence the great potential that remains in the Danish subsurface.

In March 2017, the North Sea Agreement marked a histor-ically broad consensus in the Danish parliament on the benefits of oil and gas revenue to the state. Over the last 50 years, the North Sea has contributed around 415 billion kroner to the Danish economy, and the oil and gas indus-try is supporting around 35,000 jobs in Denmark.

According to the Danish Energy Agency there are still bil-lion of barrels to be extracted, and even though the rebuild of the Tyra field infrastructure is an important enabler for growth and future investments, we had hoped to see some of the tools contained in the agreement unfolded further.Oil Gas Denmark is key in orchestrating the industry voice, facilitating dialogue, and ensuring that our perspective and contribution to Denmark is seen and recognized. At our 2017 Summit we invited Ministers, key opinion lead-ers and the industry to debate the benefits of the North Sea and how these are best secured.

This kind of dialogue with partners alongside the new North Sea Strategy launched in July – The future oil and gas sector in Denmark – is a great demonstration of what can be achieved when the industry and the authorities work together to establish a common understanding of the re-

maining potential and achieve alignment on removing barriers and optimising oil and gas extraction from the Danish North Sea. The cornerstone of our industry is safety, and it’s great to see that our yearly safety conference ‘Task Force Zero’ has turned into a leading North Sea safety event with more than 430 participants sharing best practice and knowl-edge across the industry. During 2017 OGD took over the formal responsibility for the OPITO basic offshore safety training, ensuring a consistent system for training across the North Sea, and thereby greater flexibility of the work-force and higher safety training standard.

Our role in the energy transition is a topic greatly debated, not least as we await the expected proposal for an Energy Agreement. We shouldn’t see a contradiction between the production of oil and gas and the energy transition. In fact, and as political stakeholders across the political spectrum have expressed, our industry can and must play an active role in this journey. This aligns very well with the Minis-ter’s statement earlier this year; There is still a significant potential that guarantees government revenue which is an important contribution to the government's ambition to speed up Denmark's green transition.

The highlights of 2017 have been numerous, and for me the most important is the broad support we have expe-rienced. The new strategy – Establishing OGD 2.0 – pre-sented at the OGD Council Meetings in January 2018, and based on members feedback and the member surveys con-ducted last spring, lay the foundation for our future work. In order to ensure the industry's license to operate, energy jobs and value creation, we continue to have a great task over the coming years, in reiterating how the industry can support the Danish 2050 ambition by; staying innovative and cost conscious to maintain sector competitiveness, and reinforcing why we are here – to create long term value for both industry and society.

Troels Albrechtsen, Chairman OGD

New strategy


Troels Albrechtsen, Chairman

Indeed 2017 was in many ways an eventful year. We had the North Sea Agreement and a kick-off of the restora-tion/reconstruction of Tyra. We saw the finali-

zation of the long awaited North Sea Strategy and, last but not least, three of the four producers in the Danish part of the North Sea have been acquired or are in the process of being acquired by new operators.

What have all these changes meant for the industry – not least for the service and supplier companies? Will we see further investments? The short answer is, that we do not yet know the full range of it. No doubt – the North Sea Agreement was extremely important for the industry. The restoration of Tyra – the Tyra Future project – will be the largest investment on the Danish subsoil for many years. The largest modules of the installation are being built abroad since no Danish yards had the capacity to take on that task. But I am nevertheless sure that the Tyra project will benefit the entire Danish supplier industry with the many other jobs that will follow. The Danish oil and gas in-dustry employs around 35,000 people and it goes without

saying that this is important to maintain the employment. It is paramount that we have the right framework condi-tions with incentives for investments to secure jobs.

I hope that Tyra is just the beginning. The North Sea Strat-egy showed us, that we have a 3 billion barrels potential of oil and gas in Denmark. A potential that can bene-fit the industry as well as the Danish society. We are in a green transition. As a society we are moving towards fossil indepen dent energy consumption – and even though we are moving as fast as we can, we will need oil and gas for many years to come. The modern society rely complete-ly on secure energy supply – and the renewable energy sources cannot offer that yet. The 7th licensing round has not resulted in new oil production. We are looking forward to the 8th licensing round which is on its way in 2018.

For decades the oil and gas industry has provided the Dan-ish society with energy, welfare and not least jobs! Let us all benefit from the fact that oil and gas have a big role in the energy mix in the years to come!

Verner Andersen, Vice Chairman OGD

Will 2018 be the turning point?


Verner Andersen, Vice Chairman

The implementation of new regulation regarding finan-cial and technical capacity has significant impact for oil companies for their opportunities to develop the busi-ness. In 2017, these topics were high on the agenda and OGD contributed throughout the whole year to the coor-dination of activities between members and the Danish Energy Agency.

New investment incentives with the North Sea Agreement

In March 2017, the Danish government announced a new agreement (the North Sea Agreement) with the aim of creating the necessary investment incentives to release a greater part of the potential in the North Sea. The North Sea Agreement consists of a number of ele-ments, including accelerated depreciations and higher de-ductions. The agreement applies to all new investments throughout the industry but on a voluntary basis. The two incentives introduced in the agreement may prove to make projects that are not profitable under the current framework conditions, possible to produce. It is crucial that the agreement paves the way for a reconstruc-tion of the Tyra complex. But there is also a significant potential of oil and gas, which concerns other areas of the North Sea. Oil Gas Denmark has argued that it is an important step in the right direction. It is paramount that the North Sea’s

remaining oil and gas resources is produced, creating tax revenues, maintaining thousands of jobs, ensuring Dan-ish energy supply and in the end security of supply.

The North Sea Strategy

The North Sea Strategy was published by the Ministry of Energy,- Utilities, and Climate in July 2017. The Strategy sets out to increase the potential of the North Sea, mainly through exploration and technology development, and to reduce barriers preventing fulfilling the North Sea’s po-tential, mainly through optimized use of infrastructure, reduction of cost and securing a qualified work force.

Project teams were established for the vast majority of projects, and work was kicked off in 2017. In this regard, the following activities are of particular interest:

Technical Committee (new) Purpose: to increase collaboration in technical areas among all the stakeholders engaged in the Danish petro-leum industry, be they license holders, suppliers, contrac-tors or research institutions.

Operators’ Forum (Coordination Forum) (new)Purpose: to cover both operational matters of common interest to the license holders and pertaining to oil and gas operations in Denmark and will cover planning and

Sector competitiveness

Core Activities 2017


Health Safety and Environment

Times are changing in the oil and gas industry. Compa-nies that have been known for years as key players in the Danish oil industry have been acquired by new op-erators and others are in the middle of a sales process. Reorganisations and cost reductions are on top of the agenda. Change is inevitable and constant, and with these changes comes a changing risk picture. Oil Gas Denmark’s overall aim on its work with health, safety and environ-ment is to address changing risk and work for establish-ing a resilient mindset to prevent predictable distractions across the entire oil and gas industry. It is a constant goal to manage the difficulties in this situation, so the industry as such can remain committed to the vision of an injury free industry, as this remains to be the industry’s license to operate.

HSE Committee

Oil Gas Denmark’s HSE Committee has in 2017 estab-lished several goals to be pursued in the work, carried out in the Health and Safety Subcommittee and the Envi-ronmental Subcommittee. For 2017 much effort has been put into understanding and managing the nature of the changing industry, so we can enable the continuous col-laboration within the industry around health, safety and environment in the short, medium and long run.

In respect of the current effort, the HSE Committee has throughout 2017 focused on activities making a differ-ence for the member companies as the industry through-out the year on first hand is struggling with uncertainty. Key for the HSE Committee has been to uphold work around networking, information sharing, to continue al-ready sanctioned activities and to continue to serve the responsibilities toward the authorities and our interna-tional commitment.

strategic matters regarding the utilization of available in-frastructure and production facilities capacity.

8th Licensing RoundGEUS’ ongoing process to update mapping and associated potential has not caused any major revisions ahead of the 8th Licensing Round. OGD is participating in promoting of the Licensing Round.

Facilitation of field testing of new technologiesA workgroup has been established, led by DHRTC, to identify possibilities to increase field-testing of new tech-nologies, in part through reduction of technical and eco-nomic risk.

Dialogue ForumA dialogue forum has now been established between the industry and universities to help ensure that students at-tain the relevant skills and competencies within oil and gas production.

DecommissioningA workgroup has been established to guide the work to ensure safe, environmentally neutral and cost-efficient removal of fixed facilities.

INEOS



HS Subcommittee

The HS Subcommittee collaborates by sharing knowl-edge and lessons learned and finds solutions to common issues related to health and safety by working together both direct and in relevant workgroups.

The OGD HS Subcommittee represents both operators and suppliers who collaborate in all issues related to Health and Safety. The activities have added safety relat-ed value in the industry and society by constantly seek-ing collaboration in regard to all health and safety related challenges and issue.

Safety Training Workgroup

The Safety Training Workgroup is managing the respon-sibility of the basic offshore safety training and imple-menting the training standard OPITO on the Danish con-tinental shelf. This requires a constant evaluation of the standards of the various offshore basic safety training.

It is now ratified by regulation 1379 from December 2017 that Oil Gas Denmark is taking over the responsibility of the offshore basic safety training. The implementation of OPITO and all related issues to this are handled by the Safety Training Workgroup which is constituted by rep-resentatives from operators, training centers and unions, and the work has been done in collaboration with rele-vant stakeholders and authorities.

INEOS



Helicopter Safe Transport Group

The Helicopter Safe Transport Group is a forum for align-ing and coordinating oil and gas operators and helicopter operators' interests and to uphold a constructive dialogue with the Danish Transport, Construction and Housing Authority.

Oil Gas Denmark’s Helicopter Safe Transport Workgroup has worked toward a higher and more aligned safety standard in helicopter transportation on the Danish con-tinental shelf. The workgroup has also taken seat in a di-alogue group established by the Danish Transport, Con-struction and Housing Authority focusing on traffic and exchange of data.

Lessons learned

Lessons learned are because we should aim at sharing know-ledge and learnings from incidents and be honest about our safety situations to avoid repeating of the incidents.

Oil Gas Denmark has a dedicated website for sharing knowledge and learnings from incidents. Everyone in the industry is encouraged to share own experiences with incidents to support that knowledge and learnings. With this website we aim at assisting to improve the overall safety performance in the Danish offshore oil and gas in-dustry.

FOGA – an activity map

Oil Gas Denmark is collaborating with FOGA publishing information about activities within the oil and gas sector to prevent and avoid accidents relating to offshore activi-ties. Each week, FOGA distributes this information to fishermen and other interested parties in various coun-tries in many different languages, both via regular mail, email and this website. FOGA's activity map is financed by Oil Gas Denmark. More information on www.foga.dk.

Environment in the oil and gas sector

Oil and gas production has an environmental impact and it is unavoidable that going forward with still more ma-ture oil and gas installations, the use of substances will change and likely increase. At the same time a demand for a higher level of a more environmentally friendly oil and gas production will increase and challenge the indus-try into developing new production methods, using new substances with the overall aim of reducing the environ-mental impact. The industry has over the years shown that the environmental impact is decreasing generally, and the overall environmental status is good in the parts of the North Sea where oil and gas production is taking place. It is Oil Gas Denmark´s aim that we will support the enabling of the changing demands from society to contin-uously become as environmentally friendly as possible. Environmental legislation applies in general equally to all oil and gas operators on the Danish continental shelf and is to a substantial extent based on annual or biannual permits in relations to discharges and legal requirement connected to all activities. The nature of Oil Gas Den-mark´s Environmental Subcommittee is to constantly aim at providing collaboration between the companies in the oil and gas industry and liaising with authorities to work towards that the environmental footprint is reduced and to work for fully compliance in the industry in relation to environmental legal requirement.

The Committee has worked with legal initiatives from EU such as revision of the ETS (Emission Trade System) and hydrocarbon guidance document, which will be finalized in 2018, and a number of public hearings and implemen-tation of the marine spatial planning.



NORM waste from Danish oil and gas production

NORM (Naturally Occuring Radioactive Material) waste handling has in 2017 been high on the agenda in the pub-lic domain. At present, oil and gas production has been in the Danish part of the North Sea for more than 40 years. As the fields mature, NORM has increasingly become part of the daily work.

To secure an efficient handling of NORM waste Oil Gas Den-mark did in 2017 establish a work group with two aims. Firstly, to find a solution for the temporary storage and han-dling of NORM waste at the harbor of Esbjerg when its being landed onshore. Secondly, to find a permanent disposal for NORM waste. Due to legal complexity it has not been pos-sible to find a permanent solution to handle NORM waste.


The recruitment situation for the industry has changed over the last four years. Starting from a situation where hiring the needed employees was a huge challenge for the industry, because of a structural lack of candidates with technical and scientific skills in society and therefore sharp competition between sectors, the need to hire staff fell drastically with the oil price. The conclusions and rec-ommendations from the North Sea Strategy clearly show, that a situation similar to the one before the oil prize started falling, will face the industry as it needs to hire in larger scale again. This dual situation has been reflected in the work of the OGD Committee for Skills and Capabil-ities, where focus has shifted from more short-term solu-tions to concentrating on structural topics with a more long-term perspective. The key achievements in 2017 in the committee have been, among other:

• Establishing a collaboration with the Ministry of Edu-cation to support geo science in upper secondary high school.

• Taking steps towards establishing a Dialogue Forum be-tween universities with oil and gas relevant educations and the industries, in order to facilitate that the univer-sities get the information they need to keep courses and educations relevant to the oil and gas industry.

• Image and branding event in Esbjerg presenting and evaluating on the Image Analysis from the North Sea Strategy.

Collaboration with The Ministry of Education

In 2017 OGD established a collaboration with the Minis-try of Education with the aim of offering supporting as-sistance to the upper secondary high school in order to qualify and make more authentic the geology part of the geo science subject. The project is expected implemented in 2018/2019.



Communication and External Engagement

The main tasks for the OGD Communication Committee are to support the Danish oil and gas industry by setting an oil gas agenda in the political landscape and the media and more internally to provide the members of Oil Gas Denmark with relevant information about the activities politically and in the press. This takes place through var-ious channels.

In 2017, Oil Gas Denmark has been very visible in the me-dia, including press around the North Sea Agreement, the North Sea Strategy and the general big media interest in our sector. Numerous interviews have been carried out on television, specialized media and Danish dailies.

The Committee assists Oil Gas Denmark's secretariat with public consultations, communicates Oil Gas Denmark's position on key legal issues, raises legal issues of common interest with the authorities or other relevant stakehold-ers. For example, the Legal Committee has been engaged in the Danish Energy Agency’s work concerning require-ments in respect of security and third party liability and insurance. The Legal Committee has also been involved in relation to industry health certificates and the legislation about secondary decommissioning liability.

During 2017, Oil Gas Denmark has continuously taken part in the political process by responding to relevant public hearings. Most prominent has been the public hearing around the North Sea Agreement which enabled to rebuild of the Tyra complex by introducing certain new incentives.

OGD Communication Legal issues and public hearings


Collaboration with Metroselskabet

In 2016, a collaboration with Metroselskabet was launched. This initiative is aiming at cross sector learn-ings on safety and to getting a better understanding of how the oil and gas sector are working with safety on a theoretical as well as practical level. At the safety confer-ence in April 2017, Metroselskabet was invited to share their first-hand learnings from the collaboration with Oil Gas Denmark and the member companies. This sharing clearly showed that much learnings and experience have been embedded in their own process and much can be transferred from the oil and gas industry toward other industries for them to learn from our 50 years of expe-rience.

Folkemøde 2017

For the first time in 2017, OGD participated in the Folkemøde with its own event. The occasion occurred as part of the participation at the Energy stage. The debat-ing event was settled under the authority of journalist Steffen Kretz from DR. Oil Gas Denmark participated in a number of other debates.

As part of Oil Gas Denmark’s vision we are aiming at representing the oil and gas industry toward the govern-ment, Danish Parliament and regional/local authorities.

On a continuous basis Oil Gas Denmark is engaging in formal and informal dialogues to present sector views and establish a long-lasting value proposition for our po-litical goals. Especially as part of the publication of the North Sea Strategy our new stepping stone was released to engage in a constructive dialogue around how to re-lease the full potential of the North Sea.

Oil Gas Denmark has in a number of organizations and forums been invited to take seat as the representative of the Danish oil and gas industry. Official Oil Gas Denmark seats include among other:

• The board of directors of The Danish National Com-mittee under World Petroleum Council

• The board of directors at GEUS• The board of the Local Advisory Committee (LAC)

under EAGE • Offshore Safety Council• Advisory Board at SCIENCE, University of Copenhagen• Advisory Board at Offshoreenergy.dk• Advisory Board at CMSS, University of Southern Denmark• IOGP’s EU Committee• IOGP’s Safety Committee• IOGP’s Communications Committee • NOIA’s CEO Forum• Advisory Board – Geoscience University of Copenhagen• Cooperation Forum

Partnering and recognition



Publications International engagement

OGD Annual Magazine

A 2017 OGD magazine was published at the day of the Oil & Gas Summit. The title of the Magazine in 2017 was “Self-sufficiency 2050”, which referred to OGD’s overall strategy. The purpose of the magazine was to show the huge advantages for Denmark of being self-sufficient with oil and gas during the green transition: Self-suffi-ciency creates jobs, welfare, energy supply and national security.

Environmental status report

Oil Gas Denmark’s fourth environmental status report, prepared in collaboration across the industry, was pub-lished in 2018 on Oil Gas Denmark’s website alongside the other status reports.

Task Force ZERO Interview magazine

As part of the TFZ Safety Conference, a conference mag-azine was published as well as a magazine with all con-ference speakers interviews. Following the conference, the magazine was distributed widely to share the stories from the conference, and to share learnings around safety leadership.

IOGP

Oil Gas Denmark is collaborating with IOGP (Interna-tional Oil and Gas Producers) as the voice of the Danish oil and gas sector in EU. Oil Gas Denmark is an active member of IOGP and has taken seat in the EU Committee, and the Safety Committee. By taking active part in IOGP, Oil Gas Denmark influences EU's agenda within IOGP and secures that the Danish oil and gas sector views are considered and served in the best possible way. IOGP is located in London with a representative office in Brussels.

IOGP’s EU CommitteeOil Gas Denmark has through the EU committee repre-sented its members interests on an ongoing basis and enabled Oil Gas Denmark to establish official Danish po-sitions within the EU political framework.

Oil Gas Denmark has as a combination of collecting infor-mation about ongoing regulatory work, presenting Dan-ish positions on ongoing political issues and establishing a still closer collaboration with other member companies in EU established a format to serve the Danish oil and gas interests in the best possible way.

IOGP´s Communications CommitteeOil Gas Denmark's participation in the IOGP Communi-cation Committee serves the purpose of making us able to align key messages. The oil and gas industry is transna-tional and to a high degree dependent on EU politics and therefore coinciding messages are to some extent neces-sary.

IOGP Safety Committee OGD has by its membership of the IOGP achieved knowl-edge and lessons learned regarding new IOGP HSE initia-tives. The aim is to influence in the development of HSE related guidelines and establish contacts to relevant stake-holders in international HSE matters.

By participating in IOGP Safety Committee Meetings, Oil Gas Denmark achieves a better understanding of initia-tives and changes in relevant International HSE matters.

All publications can be found at Oil Gas Denmark’s website

www.oilgasdenmark.dk





INEOS

NOIA (National Oil Industry Association) The NOIA forum is a forum in which national industry organizations meet on a regular basis and discus issues of common interest. A CEO forum is facilitated by the mem-bers at the NOIAs.

NOIA safety training committeeOil Gas Denmark is taking part in the NOIA Safety Train-ing Committee to ensure alignment of safety training standards between countries working in the North Sea and with the aim of reviewing the mutual recognition of training on the North Sea between the North Sea coun-tries which includes updates on changes in legislations.

A safety training committee for the NOIA’s around the North Sea meets once a year. The primary focus for the committee is the mutual recognition between the North Sea countries and sharing of recent developments relat-ed to e.g. equipment and legislation. In 2017 the meeting was held in Aberdeen, and the next meeting will be in Co-penhagen.

BREXITThe UK authorities have historically formed a profession-ally strong foundation for the EU Commission's work as partner in the offshore oil and gas area. At the same time, the UK has been a very important alliance partner for Denmark in discussions in the EU on future regulation.Thus, the concern of the Member States' interests is gen-erally considered to coincide across the North Sea, so the experience is also that there has been a high degree of cooperation across the authorities both bilaterally and partly through the EU's NSOAG. In view of the previously strong position posed by the English authorities, HSE on the working environment and BEIS on general business and energy-political relations, BREXIT will undoubtedly weaken the opportunities for the national oil and gas pol-icy interests to the EU Commission in relation to issues of new EU legislation.

In addition, BREXIT will challenge the industry's own stakeholder interest at EU level as the number of offshore oil and gas producing companies becomes fewer, thereby weakening the industry voice in relevant EU institutions. With the withdrawal of the EU, a number of oil companies, which today handle their business policy interests towards the EU, will no longer have licenses within the EU.

Oil Gas Denmark has in 2017 together with other nation-al industry organizations and IOGP reconsidered how to uphold the industry interests, to mitigate the changes in the best possible way.

Bilateral collaboration around the North Sea

Collaboration and engagement is ongoing among the other oil and gas industry organizations around the North Sea, including Oil & Gas UK, Norwegian Oil & Gas and NOGEPA.

INEOS




Oil & Gas Summit

At the Oil & Gas Summit 2017, the theme self-suffiency 2050 was issued for the event and as an overall political objective for Oil Gas Denmark’s ongoing work.

At the conference we were pointing at discussing how Denmark still needs oil and gas and how the Danish North Sea can be a significant contributor via the re-sources available. It was argued that the North Sea allows Denmark to stay self-sufficient for years to come and now Denmark benefits from the resulting tax revenues, jobs and independency of energy imports.

Network, Meetings and Conferences

Around 300 delegates attended the summit in 2017 of which 60 pct. were from the government administration or external stakeholders. The summit was moderated by freelance journalist Nynne Bjerre Christensen who did a professional and engaging performance in an industry environment characterized by uncertainty. Minister for Business, Brian Mikkelsen and Minister for Energy, Util-ities and Climate Lars Christian Lilleholt, both delivered good and valuable input for the discussions at the con-ference.

previously been involved with. Lamberto Nonno shared his experiences with changing the HSE culture in Baker Hughes by making all employees take ownership of safe-ty at their worksite. He was followed by Dr. John Green who argued that the constantly expanding use of check-lists and other systems disempowered employees and had made them stop being curious and thus vulnerable for new faults; instead, he believed that it was possible to empower employees by removing redundant checklists and reworking other checklists and systems.

Offshore Safety Award

The Offshore Safety Award aims to support and under-pin the importance of good safety visions and to reward examples of outstanding safety behaviour by celebrating safety work.

The award is to be presented to a person or an organiza-tion/company who has either intervened in an unsafe condition or by observation improved a safety issue or inspired/motivated colleagues to increased safety focus or improved safety collaboration by sharing knowledge and lessons learned.

In 2017 the crew working on Ensco-71 was appointed to receive the award for implementing a ‘Hand and Finger’ initiative program which in a simple and effective man-ner made people stop and think.

TFZ safety conference

430 producers, suppliers, people from other industries and students attended the annual TFZ Offshore Safety Conference at the Esbjerg Performing Arts Centre and took part in the largest TFZ Safety Conference so far.

Emma Currie from Acting Up was responsible for the opening act and she presented an enthralling perfor-mance called ´Gail´s shoes´. The performance´s focus was on how fictitious characters could engage a workforce in shaping a meaningful safety culture.

Following Emma Currie´s act, the world record setting polar explorer Ben Saunders gave an insight in his expe-riences with how to be safe in the most challenging envi-ronment on earth: the Artic.

Professor Emeritus Edgar Schein, a well-known investiga-tor of organizations´ culture, shared his views on culture in organizations and how it is possible to change a culture with special attention to the challenges faced by the oil and gas industry; he emphasized the role of the leader in how an organization acts and not least the impact of the culture when it comes to safety and safety performance.

Following the academic perspective, the conference fo-cused in two different views on Safety Management with-in the industry. Dick Benschop from Shell shared how it is possible to establish a good process safety performance on the background of different incidents at sites he has



Oil Gas Denmark’s Annual Dinner

For the fourth time Oil Gas Denmark organized an annual dinner in connection with the Annual General Meeting. The dinner took place at Sinatur Hotel in Nyborg. Around 80 executives representing a large majority of our mem-bers participated as well as a significant number of rep-resentatives from the government administration and external key stakeholder.

The annual dinner has shown to be an excellent network-ing opportunity for the industry as well as invited guests. The dinner is only for executives in the oil and gas indus-try and special invited guests.

Oil Gas Denmark HSE Network group

The HSE Network group's goal is to strengthen collabo-ration among member companies and to serve as a place for all HSE representatives in the industry to share infor-mation.

Members of the HSE Network Group have learned about colleague’s approach to challenges and shared experienc-es and learning by participating and facilitating the net-work meetings. The OGD HSE Network Group organizes four meetings a year discussing various themes e.g. In-stallation intrigrity, HSE Communication, Crisis Manage-ment and we have had the pleasure of having inspiring external guest speakers such as Jens Arentzen (communi-cation), Nick Williams (Crisis Management) and Emma Currie (HSE workshop). There are presently approxi-mately 90 members of this workgroup.

Office HSE Network group

To strengthen collaboration among OGD onshore office workers and to have a network for personnel who are working with work environment for office staff, the Of-fice HSE Group was established and planned to work to-wards a healthier workplace in backoffices across the oil and gas industry.

Key OGD events 2017

• Meeting in HSE Network Group “Installation Integrity” (23 January)

• Presentation of Image Analysis (31 January)• Joint council meeting (5 April)• TFZ Safety Conference (19 April)• Meeting in HSE Network Group

“Communicating HSE” (24 April)• Annual General Meeting & Council meetings (31 May)• Go-home-meeting at Windahl Sandroos:

North Sea Agreement (12 June)• ‘Folkemøde Bornholm’ (15-17 June)• Meeting in HSE Network Group

“Crisis Management” (4 September)• Oil & Gas Summit (20 September)• Go-home-meeting at Windahl Sandroos: new rules

for oil and gas in the North Sea (23 November)• Meeting in HSE Network Group meeting

“Workshop with Emma Currie” (4 December)

Archive

Conference proceedings and videos from the safety con-ference and Oil & Gas Summit can be found on our web-site www.oilgasdenmark.dk.



Oil Gas Denmark was established in August 2012. Following five years of operation, a review was made in 2017 of among other OGD’s strategic work areas, allocation of resources etc. with the aim of establishing Oil Gas Denmark v.2.0:• A strengthened and focused effort to support the indus-

try’s competitiveness. OGD will take an active part as enabler of the energy transition as part of OGD’s advo-cacy, communication and stakeholder engagement.

• Enhancing the cross industry effort for supporting HSE in the oil and gas industry. Compliance, cross industry learning, international high level engagement in EU will increasingly be the focus of the HSE related work.

• Enhancing the effort to ensure ‘people in the pipeline’ for the industry.

• Ensuring a timely and efficient roll out of initiatives un-der the North Sea Strategy.

The review included among other an online survey, inter-views, internal work processes, a work shop at the Annual General Assembly as well as an away-day with the Board of Directors.

OGD’s ‘Strategy House’ had served well since the outset of OGD as a ‘compass’ for OGD’s direction, governance, budget and work program procedures, organizational set up etc. A revised ‘strategy house’ has been agreed by the Board of Directors, including a revised vision/mission statement, enhanced areas of work, as follows:

Establishing Oil Gas Denmark v.2.0

Organization

To enable the upstream oil and gas sectorto enhance value for the industry and society

•A Sector competitiveness

A.1 Sector competetiveness in energy transition

A.2 Value creation from oil and gas for society

A.3 Brownfield/infrastructureA.4 Internationalisation

•B Health, Safety & Environment

B.1 Helath and safetyB.2 EnvironmentB.3 Industry practiseB.4 EU and national HSE

regulation/complianceB.5 Shared learning

•C Skills and Capabilities

C.1 Image BuildingC.2 Grow recruiting base &

people pipelineC.3 Subject relevanceC.4 Stregthen existing

labor pool

•D Technology & Innovation

D.1 Furthering deployment and development of new technology

D.2 Collaboration with knowledge and science institutions

To enable realization of the full potential in the North Sea by: • ensuring the Danish sector of the North Sea is globally competitive for investments; • promoting understanding and recognition of the sector's role in the Danish society;• advocating the sector's interests in Denmark, the AU and internationally;• taking the role as the trusted coice of Danish oil and gas sector.

• Advocacy • Research & Publications • Partnerships • Networking, events & training • Communication

1. Meet the industry needs 2. Engage our members & stakeholders

3. Seek Impact4. Lean organization

5. Agile mindset and setup6. Learning culture

Vision

Source: OGD team analysis guided by Board of Directors, December 2017

The vision of OGD is to enable the upstream oil and gas sector to enhance value for the industry and society

Mission

Core topics

Member services

Guiding principles


BOARD OF DIRECTORS

CEO

OIL GAS DENMARK

SUPPLIERCOUNCIL

OIL COMPANY COUNCIL

Health, Safetyand Environment


SectorCompetitiveness

Technology and Innovation

Communication Committee

Legal Committee

Only Oil Gas Denmark committees are shown in the organizational chart. Task specific workgroups and ad hoc work-groups which both typically are referring to a subcommittee are listed underneath in the committee, subcommittee and workgroup members list.

Organizational chart

Source: OGD team analysis guided by Board of Directors, December 2017


Organization

Service and Supplier Companies 1. ABB A/S2. ALL NRG A/S3. AMU-Vest4. An Group A/S5. ARBEJDSMILJØEksperten6. AVK Holding A/S7. Bech-Bruun8. Bel Air Aviation A/S9. Bird & Bird10. Blue Water Shipping A/S11. Bureau Veritas Certification12. Caverion A/S13. Center for Olie & Gas, DTU (DHRTC)14. Citizen Dane A/S15. Comtec International A/S16. Copco A/S17. COWI A/S18. DHL Global Forwarding (Danmark A/S)19. DNV GL20. DTI Oil & Gas21. Emerson Process Management A/S22. Ernst & Young23. Esbjerg Havn24. Falck Safety Services A/S25. Foga ApS26. FORCE Technology27. Global Gravity ApS28. Halliburton Denmark A/S29. Horten Advokatpartnerselskab30. HYTOR A/S31. International SOS (Denmark) ApS32. Jutlandia A/S33. KLAR Advokater34. KPMG 2014 P/S35. Kromann Reumert36. Lassen Ricard Advokataktieselskab37. Lisbeth Holberg ApS38. Maersk Drilling39. Maersk H2S Safety Services A/S40. Maersk Training A/S

41. Martec42. NHV Denmark A/S43. NorSea Group Denmark44. Ocean Team Scandinavia45. Offshore Medicalcenter46. Plesner47. PwC48. Ramboll Energy49. Schlumberger Danmark A/S50. Semco Maritime A/S51. Soil Recovery A/S52. Swagelok Danmark53. TS Tech A/S54. Weatherford Danmark A/S55. Welltec A/S56. Windahl Sandroos & Co.57. Wärtsilä Danmark A/S58. ÅF A/S

Oil Companies, Partners and License Holders1. Danoil Exploration A/S 2. DEA Deutsche Erdoel AG 3. Chevron Denmark Filial af Chevron

Danmark Inc., USA4. HESS Denmark5. INEOS Oil & Gas Denmark 6. Nordsøfonden 7. Shell Olie- og Gasudvinding DK B.V. 8. Spirit Energy9. TOTAL10. VNG Danmark ApS11. Wintershall Noordzee B.V

Associated members/ associations 1. Danish Oil & Gas Technology Group2. Danish Marine and Offshore Group 3. Decom North Sea 4. Esbjerg Erhvervsudvikling5. IADC 6. IPIECA7. Offshoreenergy.dk

Current members


Financial performance2017 2016 2017

Income t. DKK Members fee 11.144 10.743Strategy, Events, Conferences and sponsorships 1.579 2.387Total income 12.723 13.130

Direct cost for Conferences, etc. (3.599) (3.182) Administrative cost (2.507) (2.615)Rent (369) (398)Staff cost (6.202) (6.502)Result before depreciation 46 433

Depreciation and impairment of fixed assets (6) (6)Result before financial items 40 427

Financial expenses (25) (44)Tax 9 6

Result for the year 24 389

Equity Capital 431 820

27Annual Report 2017 — Oil Gas Denmark

HSE Committee Jacob Heinricy Jensen, INEOS Jeffrey Samuelsen, Schlumberger Gerald-Lloyd Kloski, Total Simon Byrne, Total Lars Roesen, Hess Robert Maxwell, Shell Toralf Kaland, Spirit Energy Pieter de Graeff, Wintershall Lone Karlsmose Gamble, Maersk Drilling

Environmental Subcommitee Lars H. Hansen, Total Harald Fosshagen, Schlumberger Søren R. Segel, Wärtsilä Jens R. Valeur, Ramboll Oil & Gas Jesper N. Mellmolle, NOV Brandt Soil

Recovery Stefan Reib, Hess Lene Kristensen, COWI Malene Rahbek, INEOS

TFZ Programme Committee Jacob Heinricy Jensen, INEOS Jeffrey Samuelsen, Schlumberger Gerald-Lloyd Kloski, Total Simon Byrne, Total Lars Roesen, Hess Robert Maxwell, Shell Toralf Kaland, Spirit Energy Pieter de Graeff, Wintershall Lone Karlsmose Gamble, Maersk Drilling Alan Palmer, JMJ Associate Ltd. Michael Levin, JMJ Associate Ltd.

HS Subcommittee Troels Rasmussen, Chairman, Total Stefan Reib, Hess Dorthe Ulsø, Semco Maritime Jacob Flink, Caverion Keld Fjord, INEOS Per Hjort Lorenzen, NorSea Group

Denmark A/S

Committee Chairman

Committee, Subcommittee and Workgroup members


Training Workgroup Susanne Isaksen, Total Mikael Andersen, INEOS Stefan Reib, Hess Sonnich Berg Nielsen, Maersk Training Jesper Jonø, Falck Safety Service Kenneth Ørum Kirkegaard, Martec Torben Pedersen, AMU Vest

Lene Christiansen, Dansk el-forbund Michael Jørgensen, CO-industri Jan Toft Rasmussen, Dansk Metal

Helicopter Safe Transport Workgroup Christian Kargaard Jensen, Total Dan Lockdahl, INEOS John Nielsen, Total Jesper Schmidt-Hansen, Total Lars Harpøth, Belair Martin Björk, INEOS Pernille Beck, Hess Peter Hindsberger, INEOS Susanne Hessellund, Belair Morten Sjørslev, NHV

Communication Committee Line Baldersbæk Bruun, Total Rikke Tikjøb Christiansen, Total Jesper Tau-Brieghel, Shell Peter Hindsberger, INEOS Annette Ernst Lüdeking, Rambøll Lene Tornel, Semco Maritime

Skills and Capabilities Committee Jens Holm Nielsen, Semco Maritime Mikkel Stephansen, Total Annette Bjørke, Hess Mette Højgaard Nielsen, INEOS Anette Rytter, Rambøll Tina Flindt, All NRG Ole Brian Nielsen, Caverion

Legal Committee Christian Kargaard Jensen, Total Jacob Federspiel, Welltec Lene B. Frøtlund, Nordsøfonden Peter Hindsberger, INEOS Søren H. Svendsen, Horten Louise van Wijk, Wintershall

Office HSE Group Heidi Gaardbo, INEOS Annette Bjørke, Hess Dann Lockdahl, INEOS Helen Philbert, Semco Maritime Jesper Bach Ladefoged, Total Kristoffer Elkjær, INEOS Laila Vigen Søndergaard,

Semco Maritime Linda Engholm Pedersen,

Semco Maritime Lisbeth Rasmussen, DNV GL Mads Østerby, INEOS Preben Hansen, NorSea Group

Denmark A/S Sanela Bjelevac, Total


Committee, subcommitte and workgroup members

Esben MortensenDeputy Managing DirectorM: [email protected]: +45 3841 1888C: +45 2949 4575

Martin NæsbyManaging DirectorM: [email protected]: +45 3841 1881C: +45 2199 6550

Jesper SjørvadHSE ExpertM: [email protected]: +45 5210 5201

Ida Søgaard KnudsenCommunications officerM: [email protected]: +45 3841 1879C: +45 5210 4363

Dorthe HeedegaardOffice ManagerM: [email protected]: +45 3841 1883C: +45 2615 1034

Ulla LenaCommunication DirectorM: [email protected]: +45 3841 1882C: +45 3148 1927

Employees


Ole Sidelmann Jørgensen(Part time)Senior AdvisorM: [email protected]: +45 3841 1884C: +45 6120 0199

Annette Hørlykke(Part time)AccountingM: [email protected]: +45 3841 1879

Frederik Nilsson(Part time)Project assistantM: [email protected]: +45 3841 1879

Lasse Meincke(Part time)IT and WebM: [email protected]: +45 3841 1880

Sune Krøger(Part time)Project assistantM: [email protected]: +45 3841 1879

Lars Nydahl Jørgensen(Part time) Executive AdvisorM: [email protected]: +45 4096 9618


Employees

Copenhagen OfficeKnabrostræde 30, 1st floorDK 1210 Copenhagen K Denmark

E: [email protected]: +45 3841 1880F: +45 3841 1889CVR/VAT-no: 34 40 48 95

Esbjerg Office Trafikhavnskaj 11DK 6700 EsbjergDenmark

www.oilgasdenmark.dkwww.safetyconference.dk

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