Raise the wind
Key planks of Svitzer’s business strategy
- Elevate safety to industry-leading standards with the implementation of the Global Harmonised Safety Management system that meets OVMSA standards
- Grow the oil and gas terminal towage business to 50% from 30% of the towage portfolio
- Improve profitability of existing harbour towage operations
One of Papua New Guinea’s largest oil and gas exploration and production companies, Oil Search, recently signed a five-year USD 75 million contract with Svitzer to provide marine support services for its Kumul Marine Terminal in the Gulf of Papua.
Together with other oil and gas terminal deals in the Australian region, the new contract confirms both the growth potential for Svitzer in the oil and terminal marine support side of the business and the impact of implementing much higher safety standards.
“This is an exciting contract and is precisely what we’re aiming for in our ‘Raise the Wind’ business strategy,” says Kasper Nilaus, Head of Business Development for Svitzer.
“We are improving the profitability of our harbour towage business and pursuing growth in the oil and gas terminal towage side where the contracts are long term, and our expertise and industry-leading safety standards can add real value to customer operations.”
Two recent 20-year contracts with Chevron to provide marine services for its two large LNG projects in North Western Australia are good examples of what Nilaus means. These customers are major participants in the country’s economy, with no tolerance for anything but the safest and most reliable operational partners.
“This isn’t just about the tugs. We have a huge responsibility here as a small but essential part of the transport supply chain to ensure the safe and reliable movement of critical cargoes. That was an understanding we wanted to make clear to both Chevron and more recently Oil Search in the tender process,” says Alan Bradley, Chief Commercial Officer for Svitzer Australia.
More than a contract
Svitzer will supply the marine assets and highly trained crews required to ensure the safe movements of vessels, in and out of the facilities. This will involve the provision of four tugs and a pilot boat at each of the Chevron facilities, and two large anchor-handling tugs at the KMT offshore facility in the Gulf of Papua.