By Lise Kirkegaard
It takes more than a successful exploratory well for a drilling operation on foreign territory to be a success. It also takes integration into and understanding of the local culture and local business life. Such synergy and understanding are achieved through knowledge and the exchange of knowledge. That is at any rate the view held by the Danish company DONG, which, as a member of The Faroes Partnership, is participating in the drilling of the third exploratory well on Faroese territory.
»It is easier to work together with others if all the parties involved have the same understanding of things,« says Senior Vice President Terje Edvardsen from DONG.
Together with the other companies in The Faroes Partnership, DONG has therefore had close cooperation and fruitful dialogue for many years with Faroese industry, the Faroese Government and public institutions, and many Faroe islanders, in order to increase common understanding and develop human resources both on the Faroe Islands and at DONG.
»One of the main aims of our activities is to support the development of competence within the oil industry on the Faroe Islands,« says Jan Terje Edvardsen.
Knowledge concerning the Faroese subsoil
DONG has had activities on the Faroe Islands since 1995, when the company, in cooperation with the Faroese authorities, was in charge of the preparation and drilling of an exploratory well on the island of Suderø, financed by a number of international oil companies. The purpose of the well was to provide information about the Faroese subsoil and extend the knowledge already acquired by the Faroese Government itself through a well drilled at the beginning of the 1980s.
In 1995, DONG formed The Faroes Partnership together with Amerada Hess. Later on, British Gas and Atlantic Petroleum joined the group, which opened an office in Thorshavn in 1998.
Traineeships at DONG
Jan Terje Edvardsen says, »To operate optimally on Faroese territory, we must overcome cultural barriers and achieve a common understanding of each other's needs. We therefore started a training programme a couple of years ago.«
Under this programme, DONG and the other companies in The Faroes Partnership offered some young Faroe islanders short-term employment ? so-called traineeships.
»In that way, a number of young Faroese have been able to work for an oil and gas company and share in the expertise and experience that have been built up in a company like DONG. At the same time, traineeships are a good way of developing good personal connections with the Faroe Islands and of gaining local anchorage and knowledge,« says Jan Terje Edvardsen. »We want as much of the activities as possible to benefit Faroese society, partly because it is natural to exchange know-how, but also because it is, after all, the Faroe islanders' resources we are using.«
Nine Faroe islanders have been on traineeships at DONG since 1997 and DONG has three Faroe islanders on its permanent staff.
Drilling know-how
One of the areas in which DONG can contribute special know-how is cost-effective drilling of exploratory and production wells.
As something unique, DONG has acted as the drilling operator for the oil companies Clam, Agip, Kerr McGee, Phillips and Amerada Hess, all of which are operators on the Danish Continental Shelf. In the period April 2000 to October 2001, DONG's drilling team has drilled eleven exploratory wells in the North Sea for these companies in the so-called drilling campaign 2000.
»That procedure is unique in the oil industry,« says Jan Terje Edvardsen. »Normally, the oil companies drill their exploratory wells themselves. The drilling campaign has resulted in big savings in connection with the various wells. The mobilisation costs connected with the drilling rigs have been shared by the companies. In addition, each of the companies has saved money by avoiding having to set up an organisation in Denmark themselves just to drill one or two wells.«
Another reason for the savings is that the drilling team has been able to optimise the drilling work as the programme has proceeded
»When one drills so many wells, one acquires a thorough knowledge of the subsoil in a specific area, so we have been able to use our existing knowledge of the Danish sector and the experience we have gained from well to well to optimise the drilling work.«
Jan Terje Edvardsen believes that the idea can be successfully transferred to the Faroe Islands.
He says, »I believe we would benefit from a similar constellation in connection with the exploratory wells in the Faroese subsoil, and we at DONG would be pleased to contribute all the knowledge we could.«
