Norwegian engineering and construction services company Kvaerner said it will ramp up its focus on floating production and renewables projects in an effort to achieve 40% growth within two years.

Going forward, Kvaerner will expand operations with the growth areas renewables and floating production units. The aim is to increase annual revenue, from around NOK 7.3 billion in 2018 to NOK 10 billion within 2023.

Of the prospects for oil and gas projects that are relevant for Kvaerner, it is expected that the time between projects related to large offshore platforms with fixed substructures will increase. At the same time, Kvaerner sees an increasing number of opportunities both in Norway and abroad for small unmanned platforms with steel jackets, and is also expecting growth for floating production units with hull storage capacity, floating production, storage and offloading unites (FPSO). Presently, the group is executing the delivery of an FPSO to the Norwegian Johan Castberg field.

Kvaerner CEO Karl-Petter Løken, said, “We have efficient facilities for building platforms, with new automated production equipment and world-leading expertise. We believe that we are able to offer one of the world's best production lines for advanced FPSOs, focusing on secure execution within agreed quality, time and budget. We aim to win and execute a series of FPSO projects after Johan Castberg. A consistent activity like this resembles factory operations which will further improve both HSSE and productivity.”

In the renewables sector, Kvaerner, which has delivered more than 50 units for offshore wind projects and is currently involved in early phase work for several customers, has noted significant wind power projects expected both on the Norwegian continental shelf and internationally and said it sees opportunities for wind power in other regions especially offshore Europe and North America.

“The market for the development of offshore wind power is growing exponentially. If such developments are to be profitable for both energy companies and society, it is important that suppliers can contribute with safe and efficient execution. We bring valuable knowledge from the oil industry where the cost over time has been significantly reduced,” Løken said.

“From now on, Kvaerner will, together with customers, subcontractors, and public knowledge institutions etc. aim to build a whole new industry with jobs, expertise and value creation.”

With the strategy shift comes changes to the company's organizational structure and leadership, effective October 1. Kvaerner said there will be no staff reductions.

The number of members in the executive management team is reduced from nine to eight people.

A new area is established for projects within renewable industries, and another new area is established for FPSOs. All other projects are amalgamated in the area process and structures.

All employees involved in the execution of projects are amalgamated in the EPCI (Engineering, Procurement, Construction, Installation) area. The two specialized areas at Verdal and Stord are also organized under this unit. The areas staff, process solutions, concrete and new solutions are discontinued as associated departments are also organized under EPCI. The EPCI resources will be leveraged across all projects going forward.

“We rotate both managers and other key people between different roles. This contributes to our continuous sharing and further development of expertise. The foundation for our business is that we have employees who not only have experience and expertise, but also passion for how Kvaerner is going to create sustainable values for our customers and the community around us,” Løken said.