"The growth in Asia is impressive, and DNV is eager to make its contribution to companies and governments in ensuring that the growth is sustainable," says Remi Eriksen, newly appointed COO and Head of Division Asia, Pacific & Middle East in DNV. "I am convinced that our services to help customers identifying, assessing and managing risk will be valued - and needed - in the rapid growth of Asian economies."
DNV recently established a divisional structure to better serve its customers by bringing senior management and certain key competencies closer to the market. The divisional head office for Asia, Pacific & Middle East is based in Singapore, and represents a distributed headquarters function - or an extended arm of Corporate. Remi Eriksen, who now is in charge of the Division, came from the position as global responsible for all DNV's services towards the oil, gas and energy sector, with a seat in the Executive Committee. He still serves on the Executive Committee, but is now responsible for all DNV's activities in Asia.
Could you briefly describe what distinguishes DNV from other companies?
"Our purpose is to safeguard life, property and the environment. What we bring to the table is an exciting cross-disciplinary competence and an independence based on being a foundation. Deeply rooted in technology, with broad and deep industry expertise, DNV has developed its risk-based approach, leading to services that encompass safety as well as environment and business aspects. In short, we help our customers see and grasp new opportunities and at the same time manage downside risks. We have developed a methodology that enables us to put a price tag on risk. I have already seen many examples of great savings from using this risk management approach at the very early stages of complex projects," says Remi Eriksen.
"My clear impression is that there is a trend in the Asian markets towards a more risk-based approach. This trend can contribute to safer, more cost-effective, and more environmentally friendly solutions."
Why these extra efforts in Asia?
"There are many good reasons for further building up our presence in this part of the world, from the 2,000 we are today," says Remi Eriksen. "Continued strong growth in most economies is one with investments, in both the maritime and energy sectors where we have our core competencies. Energy demand is increasing fast; developing sustainable energy supply solutions will be high on governments' agenda. Also, there are a lot of newbuilding programmes ongoing, both within shipping, offshore and in the energy sector at large. DNV's involvement with these newbuilding programmes represents more than 80% of our total activity in Asia.
"As a leading classification society, we are involved in all phases of the development of new ships and mobile offshore units. Most of the world's leading nations on ship and offshore construction are here: Korea, China, Japan, Singapore, and runners-up like the United Arab Emirates and Vietnam. All are important markets for DNV.
"Through our class rules and standards, we present to our customers the aggregated experience and learning from the whole shipping and offshore industry. Our surveyors, be it on a newbuilding at a yard or onboard a 20-year-old rig, represent a safety net to the industry by verifying that safety, quality and competencies are according to required standards.
"But we contribute way beyond verifying accordance to rules. We work with oil and gas operators, yards and shipowners in the fields of enterprise risk management, asset risk, technology qualification and energy efficiency, to mention some. What they have in common is that they enable such companies to manage their total risk exposure. Better decision support means better decisions, ensuring safer and more economically sound operations."
How is the demand for cleaner energies?
"The demand for cleaner and more environmentally friendly technologies and solutions is huge," says Remi Eriksen. "China has set very ambitious goals when it comes to gas and LNG. In its energy mix for the next five years, gas will make up 10-12% compared to less than 5%.
"This gives DNV a unique opportunity to contribute with services within LNG along the whole value chain from upstream development and liquefaction to LNG carriers, terminal re-gasification and pipeline distribution. But these opportunities are not limited to China. They also include South East Asia, the Middle East and Australia.
"Gas still represents a great untapped potential for replacing coal and oil in energy production. It also represents a much cleaner fuel for vessels than the present heavy fuel oil."
What about renewable energies?
"No doubt, wind is the most important. Again, China has taken a bold step in defining a strong growth in offshore wind. With our long experience and strong position in the wind sector in Europe - where more than 70% of all wind farms are certified by us - we are confident that wind will represent an important part of our future activities in Asia. To develop offshore wind farms, we can draw upon competencies from offshore oil and gas developments. This has given us a clear number one position in this market," says Remi Eriksen.
"We want to help our customers enter new and exciting areas with a best possible understanding of their risk exposure."
You have served in Houston and at the head office in Oslo. Now, Singapore and Asia represent a different challenge. Do you have any management philosophy to ensure that you succeed?
"DNV's most important asset is the competence of our people. And DNV has very competent people. I therefore think it is vital to have as a starting point that everybody has something to bring to the table. So I want all people to ask themselves - how can I best use my strengths? It is up to me as a leader to make sure that everybody gets the opportunity to contribute to DNV's development, and to develop and grow as individuals.
"The one thing I do not want to see is that people bring forward problems - and problems alone. I want any problem to be accompanied by at least one suggestion for a solution. So, let's find solutions - not only problems," says Remi Eriksen.
Text: Tore Høifødt
Date: 2010-10-14