The offshore industry was under continued pressure in 2019, resulting in new challenges for Stena Drilling. ”We’ve been successful by focusing on keeping the rigs in top condition.” says Erik Ronsberg, Managing Director of Stena Drilling.
Stena Drilling is one of the world’s leading independent drilling contractors. The company is also a pioneer within several areas of technical development and innovation in the offshore industry, after several successful newbuilding and conversion projects. Today, the fleet comprises four drillships and two rigs, operating in a global market. During the year, drilling operations were undertaken in waters off Israel, Guyana, Ghana, Ireland and Cyprus, and in the North Sea.
The global downturn for oil- and gas-related companies began in 2014, with the consequence that energy companies reduced their costs, and first of all for costly offshore drilling projects. In turn, this led to lower employment for drilling contractors, as offshore exploration for new oil and gas finds was braked. ”Some drilling contractors went bankrupt. Stena was also affected by the decline in demand for drilling services, but we took the decision to keep the rigs ready for new assignments by retaining crews, while a lot of time and money was invested in maintaining the high standard of our fleet,” says Erik Ronsberg. ”In turn, this ensured that we were well-positioned when new contracts were offered for tender, and we’ve been successful in winning assignments for all of our rigs.”
During the year, Stena Drilling was also engaged in investigating opportunities to use digitalisation and AI to optimise operations, an area in which the company has cooperated with Stena Teknik and Stena IT, as well as other specialist companies. Our rigs generate enormous amounts of data from drilling activities, which could be used to optimise every aspect of our activities.
SAFETY AND PERFORMANCE
Stena Drilling is known in the industry for safety and performance. ”This has made us popular among oil companies. Safety is paramount for oil companies, and we have a fantastic track record. Our drillship Stena Carron, for example, has been free of occupational injuries for nine years, and Stena Don for eight years. This makes us an industry leader when it comes to safety – but we must stay focused on maintaining our position, and double check everything we do,” says Erik Ronsberg. ”Sustainability is another increasingly important factor. We’re currently reviewing every area of our activities, including fuel saving measures, and reducing emissions as well as food waste. Much of this will be applied during 2020 on our newly-converted rig, Stena Don”, he says.
During the year, Stena Drilling continued to work on innovative projects, including the Rig of the Future – which drew a lot of interest from oil companies. ”Innovation is an important cornerstone for Stena Drilling. We encourage all of our personnel, onshore and offshore, to think about how we can work better, more safely and more effectively. This might concern the conversion of rigs, equipment or processes, and we can see significant benefits from this commitment,” says Erik Ronsberg.
Share of Total income
MSEK capital employed