DBERR/INTSOK BUSINESS TO BUSINESS MENTORING INITIATIVE

SLP Engineering Ltd. / MPU Enterprise AS

Case Study

1Introduction and Specific Aims of the Mentoring Initiative

The present case study represents a summary of the experiences made by representatives of SLP Engineering and MPU Enterprise in the DBERR/INTSOK Business to Business Mentoring Initiative, running from April 2007 to June 2008.

This cross border mentoring scheme was initiated by the British DBERR (formerly DTI) and by the Norwegian INTSOK. In 2008, eight UK mentor companies were paired with eight Norwegian mentees. Conversely, eight Norwegian mentor companies and eight UK mentees participated to the programme.

2SME Profile

2.1Nature of business / Range of products / services

MPU Enterprise AS is a technology company which has created three vessel concepts aimed at the Offshore Industry: the MPU Heavy Lifter, the SEMO floater and the MPU Lifters. These three products are intended to provide solutions and services within heavy lifting, transportation, installation and removal of heavy offshore structures, and within drilling and/or floating production and storage of oil and gas.

Its daughter company MPU Offshore Lift ASA, is currently building the MPU Heavy Lifter, a concrete floating structure destined to the offshore platform decommissioning market. Vessel delivery is foreseen in early 2009.

SEMO Offshore AS aims at commercialising the use of the SEMO floater concept for uses as diverse as drilling, production, storage and accommodation.

MPU Lifter AS is working on two specialist semi-submersible vessel concepts, one for the construction market as a complement to the MPU Heavy Lifter, the other for offshore wind turbine installation.

2.2Current markets

The primary market for platform decommissioning targeted by MPU Offshore Lift is the North Sea. The vast majority of platforms due for decommissioning in the next decade are here situated in the UK sector. The UK market will thus be of prime importance for the company.

Both vessel concepts considered by MPU Lifter AS also have the UK as an important potential market.

2.3Organisational structure

MPU Enterprise AS has been the initiator of all three companies, MPU Offshore Lift AS, SEMO Offshore AS and MPU Lifter AS.

MPU Offshore Lift AS is partly owned by MPU Enterprise, the remaining shares being held by both industrial and financial investors.

MPU Lifter AS and SEMO Offshore AS are both fully owned by MPU Enterprise AS.

2.4Key challenges facing the business

The common denominator of the “MPU” companies is that they propose to bring to the market concepts and working methods which radically deviate those adopted by the established industry.

Given that such novel concepts and methods fulfill their promise of increased “simplicity, safety and cost effectiveness” compared to the established players in the industry, the challenge consists in convincing the market that the potential advantages outweigh the real or perceived risk of embracing the new methods.

As with all radical innovation, a new concept needs to find the first, bold customer who will trade the security of doing things as they always have been done with the potential rewards of a better method.

2.5Mentee – current role

Nicolai Hytten is manager of MPU Lifter AS, a wholly owned subsidiary of MPU Enterprise AS

He holds a MSc. in Electrical Engineering from the Swiss Federal Institute of Technology in Lausanne and worked within electronics instrumentation development and satellite test equipment whilst living in Switzerland.

Working in Norway since 1986, he has been involved in sub-sea instrumentation, offshore drilling, marine propulsion and vessel instrumentation.

2.6Key areas of Mentor support identified

  • Learn about UK players in the field of offshore platform installation and decommissioning - potential customers, competitors, partners
  • Learn about UK players in the field of offshore renewables (wind farms) - potential customers, competitors, partners
  • Learn about the UK market in areas relevant to MPU - in order to acquire sufficient knowledge to elaborate a strategy for serving the UK market. Understand how the kind of services proposed by MPU are contracted in the UK - and by whom.
  • Achieve the opportunity to interact with potential key customer decision makers in order to influence their contract strategy prior to ITT release

3Mentor Profile

3.1Employer

SLP Engineering Ltd has been a contractor to the offshore oil and gas industry for almost 40 years. The company can trace its origins to the early days of gas exploitation in the Southern North Sea as a service contractor. Through continuous development and growth, SLP is now a provider of turnkey solutions to the industry on an international basis. Employing 800 people SLP provides EPC and EPIC contracting services including minimal facility platforms, accommodation platforms and modules, process and production modules and FPSO conversions. Geographic areas where these services are provided include Mexico, Iran, Qatar, The North Sea both UK and Norway and the Far East.

SLP’s clients include ConocoPhillips, BP, Shell, Maersk, Tullow Oil, ATP and other leading oil companies and energy providers.

3.2Mentor - Current role

Russell Harper is the Business Development Manager for SLP Engineering Limited, his primary responsibilities are within the upstream oil and gas sector. However, his personal activities do extend to the renewable energy business and in particular onshore and offshore wind farm development.

With 25 years experience within the industry, Russell can advise on various disciplines with some authority and looks forward, as a mentor, to participating in the programme.

3.3Personal reasons for becoming involved in this initiative

To support the Mentee programme objectives by providing an insight into the UK market targeted to the Mentee company’s specific requirements.

To introduce and provide an understanding of the potential of offshore wind farm development that the Mentee company can take advantage of.

3.4Personal development goals to be achieved under this initiative

Through the Mentor programme, gain a greater understanding of the Norwegian market and players and to raise the profile of the Mentor Company within the Norwegian market place.

4Impact of the Mentoring Relationship & Initiative

4.1Achievement of Objectives

Of the four objectives described in 2.4 above, the three first have been achieved to varying extent. The fourth proved to be, in hindsight, clearly overambitious and difficult to achieve within the constraints of the programme.

4.2Key Business Impact on the SME

Several of the personal contacts resulting from participating in the programme have proven to be of value to the company.

The added personal network from this programme is also important to the mentee and may prove valuable for the SME in the future.

4.3Key Personal Development Impact on the Mentor

Through the Business Mentoring Programme the opportunity to meet, on an informal basis, representatives of the Norwegian supply chain proved to bean ideal introduction to the Norwegian SME market. The ambitions and business objectives of MPU I found of great interest.The ongoing new build programme of MPU Heavy Lifter enjoys a synergy with SLP’s own construction activities and will be followed closely. I personally, through participation in the mentoring programme, have gained a valuable insight into the Norwegian way of “doing business” and simply mentioning SLP’s participation in the initiative has acted as an introduction in its own right.

4.4Key Lessons Learned

  • Establish clear, quantifiable and achievable objectives, without being over ambitious.
  • Having established these objectives, ensure a mechanism is in place to monitor and report progress as appropriate.
  • Do not loose the initiative; maintain contact to reap the benefit of the time spent on the programme.

4.5Effectiveness of support provided by DTI / Intsok & The Urquhart Partnership

The various events organized by DBERR(DTI)/INTSOK/UP were particularly useful with respect to the networking between the representatives of the 32 participating companies. The importance and usefulness of such contacts have been extensively underscored by most of the participants.

The themes developed during the meetings were, although interesting and relevant in their own right, more of a diversion from the pursuit of the participants’ individual, declared goals, than a valuable complement to the work to be done between mentor and mentee.

Of all the very pleasant meetings attended during this year, the concluding one in Bergen hosted by Intsok particularly deserves mentioning for the choice of venue and the excellent cultural programme, which included genuine Bergen hospitality and weather.

5Recommendations for improvements to the Mentoring Initiative

  • Consider doing the pairings before the kick-off meeting – allowing a more careful matching of mentor/mentee
  • Consider avoiding plenary presentations from all (16) pairings or (32!) individual companies.
  • More emphasis on explaining, facilitating and supporting the mentoring process – What should a mentor do? What can a mentee expect, hope for, aim for? Do’s and don’ts of mentoring?
  • Concentrate on achieving the goals defined by the individual pairings.

6Conclusions

The mentoring programme has proven to be a valuable vector for cross-border business relations exchange. It deserves to be allocated more time and consistent effort by the SMB than is often made possible by the constraints of everyday business.

The facilitators might consider increasing their emphasis on how the mentoring process should work.

Appendices

App. 1Summary of overall objectives – SME

App. 2Summary of overall objectives – Mentor

App. 3Diary of meetings

Appendix 1

Summary of the overall objectives to be achieved by the SME, by the end of the Mentoring Initiative.

SME ORGANISATION
MPU Enterprise AS / MENTOR
SLP Engineering Ltd.
KEY OBJECTIVES FOR SME TO BE ACHIEVED DURING THE INITIATIVE
OBJECTIVE / PERFORMANCE INDICATORS / TARGET DEADLINE
OBJ 1
Learn about UK players in the field of offshore platform installation and decommissioning - potential customers, competitors, partners
OBJ 2
Learn about UK players in the field of offshore renewables (wind farms) - potential customers, competitors, partners
OBJ 3
Learn about the UK market in areas relevant to MPU - in order to acquire sufficient knowledge to elaborate a strategy for serving the UK market.
Understand how the kinds of services proposed by MPU are contracted in the UK - and by whom.
OBJ 4
Achieve the opportunity to interact with potential key customer decision makers in order to influence their contract strategy prior to ITT release / Feedback from meetings with selected key customers

Appendix 2

Summary of the overall objectives to be achieved by the MENTOR, by the end of the Mentoring Initiative.

SME ORGANISATION
MPU Enterprise AS / MENTOR
SLP Engineering Ltd.
KEY OBJECTIVES FOR MENTOR TO BE ACHIEVED DURING THE INITIATIVE
OBJECTIVE / PERFORMANCE INDICATORS / TARGET DEADLINE
OBJ 1
To support the Mentee programme objectives by providing an insight into the UK market targeted to the Mentee company’s specific requirements. / Through SLP’s renewably energy division, progress has been made in this area.
OBJ 2
To introduce and provide an understanding of the potential of offshore wind farm development that the Mentee company can take advantage of. / Through SLP’s renewably energy division, progress has been made in this area.
OBJ 3
Through the Mentor programme, gain a greater understanding of the Norwegian market and players and to raise the profile of the Mentor Company within the Norwegian market place. / Largely achieved.

Appendix 3

Diary of meetings

2007

March 26-27
Stavanger / Mentoring programme kick-off event, hosted by Statoil
Presentation of all Norwegian and British Mentors & Mentees. Pairing based on expressed preferences. MPU is paired with SLP.
Social event hosted by The British Embassy.
Particip.: R. Harper, N. Hytten
May 9-10
Oslo / Russell Harper visits MPU offices at Lysaker (Oslo).
Meeting with MPUE CEO Mr. Kolbjørn Høyland, CTO Trond Landbø, N. Hytten.
Presentation of SLP and associated companies, business areas, markets.
Presentation of MPU and associated companies - MPU Offshore Lift ASA, SEMO Offshore AS, MPU Lifter AS.
May 22-23
Aberdeen / Second DTI/Intsok meeting at Talisman offices in Aberdeen
In the evening, attendance of a Norwegian British Chamber of Commerce event.
May 23rd Mentor & Mentee visited the All-Energy ’07 exhibition at the Aberdeen Exhibition Centre
June 26-27
Lowestoft / N. Hytten visits SLP Engineering in Lowestoft.
Visit of SLP premises and fabrication yard.
Presentation by N. Hytten of MPU activities to SLP Directors.
Sept 29-30
Oslo / Third DTI/Intsok meeting at DnV premises at Høvik
Dec 4-5 / Fourth DTI/Intsok meeting in Newcastle

2008

Feb 25
London / Trond Landbø and N. Hytten meet Peter Fish (Offshore Business Development Manager) and David Danson (Principal Engineer) at the SLP offices in New Maldon. Discussions mainly about MPU Heavy Lifter vessel and prospects within offshore wind turbine installation.
April 9-11
Bergen / Close-out meeting for the INTSOK programme.
Russell Harper could unfortunately not attend this last meeting.

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