With increased activity and more investments, the company feels that optimism is back on the Norwegian continental shelf.

– It’s going well for the time being. The IKM Group definitely notices that the market is improving. There is high activity on the shelf and in our businesses, and this has reflected in improved results, says Øystein Stjern, Executive Vice President in the IKM Group.

Important contracts

IKM Elektro secured its largest Equinor contract ever earlier this year. IKM Testing has landed agreements with Total E&P Denmark for work on Tyra, as well as a six-year framework agreement for all Aker BP’s installations on the Norwegian continental shelf. These are just some of the contracts that IKM has secured in recent months.

– It means a lot to be awarded such contracts. This gives us more predictability, which makes it easier to plan ahead. These agreements are very important to us, says Stjern.

The Executive Vice President agrees that the optimism is back on the Norwegian continental shelf, but at the same time says that we have to be careful.

– The basis for optimism is increased activity, but it is also linked to the fact that most people seem to have a sufficient focus on costs. It is important to avoid too low profitability when investments after 2023 may be lower than today. We work actively to avoid being exposed to the risks associated with this.

– The only thing we can do is to operate as cost-effectively as possible. This is something we are extremely concerned about, and we feel that we are regarded as easy-going in the market. By that, we intend to be a company that quickly turns around, is easy to work with and actively works to look for productivity gains that also benefit our customers.

Also read: The optimism is real

Want more focus on productivity

IKM has reviewed and adapted its business model to make money through a period of lower activity. They are now reaping good rewards from their improvement work, but Stjern still believes that there is a way to go when it comes to contract awards.

– There is a lot of focus on rates, but we want more focus on productivity. We do not have all the solutions here yet, but everyone understands that if you manage to do the job in half the time of your competitor, then being measured just by the rate will give a wrong impression, says Stjern.

They have made such suggestions several times, but this is rarely accepted by the oil companies. IKM is not the only one who reacts to how contracts are entered on the Norwegian continental shelf. Oceaneering also has clear views on this matter. You can read more about it here:

Read more: Improvements have led to more work and increased recruitment

Must meet the suppliers

There is great interest in this year’s Offshore Technology Days exhibition in Stavanger Forum on October 16 – 17. Hundreds of companies have already announced their arrival, and IKM is no exception. In addition to the IKM Group itself, they are represented with four companies: IKM Elektro, IKM Hydraulic Services, IKM Inspection, and IKM Laboratorium. Stjern and his colleagues are looking forward to attending Norway’s largest annual oil exhibition next week.

– We are, as I said, a forward-looking and easy-going organization, and then it is important to attend trade exhibits such as OTD. We will show how we work with technology, development, and sales. We are also clearly interested in meeting suppliers who can add something new and better to us and the industry, says the Executive Vice President.

IKM is also participating in BusinessHub. It is a concept where exhibitors get the opportunity to book one-on-one meetings with key personnel from companies such as IKM, Neptune Energy, Equinor, Oceaneering, Wintershall, Spirit Energy and Vår Energi.

Also read: Entered a unique agreement on OTD

– This is a meeting place where we get to know and discuss with the suppliers. We are looking forward to making contacts that will make us interesting to both new and existing customers.

Do you want to attend Norway’s largest annual oil exhibition in Stavanger?
Register for free here!