Seadrill boss rattles Norway exit sabre / News / The Foreigner

Seadrill boss rattles Norway exit sabre. Oilrig tycoon John Fredriksen is ringing the changes at his company Seadrill, repeating threats he will be pulling Seadrill out of Norway. In a newly released press statement, about two years following a raid on its premises in Stavanger related to tax, the Seadrill Board announces, “plans to implement a new management structure to ensure continued safe and efficient operations and support its global strategy.” As a precursor to the threatened move, executives cite that management operations have been conducted out of Stavanger since the company acquired Smedvig ASA in 2006. 

seadrillstavanger, johnfredriksen



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Seadrill boss rattles Norway exit sabre

Published on Wednesday, 3rd October, 2012 at 10:30 under the news category, by Michael Sandelson   .
Last Updated on 3rd October 2012 at 10:56.

Oilrig tycoon John Fredriksen is ringing the changes at his company Seadrill, repeating threats he will be pulling Seadrill out of Norway.

Seadrill company logo
Seadrill company logo
Photo: Seadrill


In a newly released press statement, about two years following a raid on its premises in Stavanger related to tax, the Seadrill Board announces, “plans to implement a new management structure to ensure continued safe and efficient operations and support its global strategy.”

As a precursor to the threatened move, executives cite that management operations have been conducted out of Stavanger since the company acquired Smedvig ASA in 2006. 

In addition, 2012 saw North Atlantic Drilling Limited separated from this portion of the business, with a Stavanger-based operations centre too. Seadrill also has regional operations centres in Houston, Dubai, Rio, and Singapore.

“As a direct consequence of these changes, the Board has reviewed the future management structure. The company can further improve its efficiency by reducing the size of the Seadrill Management and by moving several of the functions to the operating regions,” it writes.

“Seadrill Management's location in Stavanger may constrain Seadrill's aggressive growth plans, for which access to qualified personnel is critical. Furthermore, the Norwegian cost level and distance from Seadrill's core markets makes travel and logistics cumbersome when managing worldwide operations.”

Executives add they are now considering other locations such as Dubai, Houston, Singapore, and London – where Mr Fredriksen, a Cypriot national after renouncing his Norwegian citizenship, owns The Old Rectory in Chelsea. With the subsequent purchase of two properties by his daughters, the Fredriksen family is comfortably installed just off the King’s Road.

Seadrill’s announcement comes as Conservative Party (H) Stavanger Mayor Christine Sagen is trying to stave off the move abroad. Repeated attempts for a meeting with Mr Fredriksen in London have so far failed.

The Board announces it will make its decision about whether to relocate from Stavanger before the end of this year.

Norway business academic Torger Reve, professor at the Norwegian Business School (BI), has warned of a the effects on Stavanger’s oil environment should the company relocate.

He tells The Foreigner from a conference at Sola Strand Hotel that, "Seadrill is perhaps the most valuable company in the Stavanger region after Statoil. It would be a clear weakening of the offshore industry if it moves."

Seadrill currently operates in 15 countries and has about 7,600 employees worldwide. Roughly 160 staff are based in Stavanger.



Published on Wednesday, 3rd October, 2012 at 10:30 under the news category, by Michael Sandelson   .
Last updated on 3rd October 2012 at 10:56.

This post has the following tags: seadrillstavanger, johnfredriksen.


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