Could you provide a comprehensive overview of Odfjell Well Services in Romania, including its current capabilities and growth trajectory since its establishment?

Odfjell Well Services has been operating in Romania since 2009, but its local entity was established a few years later, in 2012. The company has recently experienced a period of growth and now boasts a team of over 50 employees. The Romanian hub coordinates the larger area of Central and South Eastern Europe, a strategic choice for the company as it has had a very good start in this market and has managed to assemble a strong team. Romania’s long-standing tradition in the oil and gas sector is also an advantage as it is easier to find skilled people here than in other places, which is essential for the business. Additionally, the company shares resources between the different countries in which the Group operates, with many Romanians having participated in projects in the North Sea.

What is the significance of Romania to Odfjell Well Services’ wider business, especially given the recent diversification in the region?

Back in 2013, the company’s business in Romania accounted for approximately 90% of its revenue. However, it was highly dependent on one or two large operators, making its revenue stream unstable. To ensure stability, the company shifted its focus to new jurisdictions, and presently, Romania accounts for approximately 60% of its business, while the remaining 40% comes from other countries in the region. This regional expansion has become vital for the company, with the addition of Ukraine to its portfolio, and plans to open an entity there in the coming years. The situation is similar in countries like Turkey and Greece, and the company is always keeping an eye out for market developments to understand what makes the most sense in terms of expansion going forward.

What has been driving the positive growth trend of Odfjell Well Services in Romania?

The company’s activity growth or slowdown is directly impacted by the development plans undertaken by operators, which is a function of how the industry performs. Currently, there is demand in the market generated by operators’ efforts to maintain their production levels, and the stabilization of the oil price has also made a positive contribution. Although it is a competitive market, the company’s activity has been rather constant in Romania for onshore, and the offshore sector keeps gaining traction. The company is, for example, working on the first project that has received the final investment decision, and it is waiting for other key players to present their decisions in the coming period.

While Odfjell’s core expertise is in the offshore sector, particularly deep waters and harsh environments, does the Black Sea present any particular challenges in terms of drilling?

Although the company is mostly focused offshore, in Romania, the onshore segment has seen much more developments in the past, so it has had to adjust to this circumstance. The offshore sector is just beginning to grow, and there have not yet been any campaigns that could ensure long-term agreements. However, the company does not find the Black Sea environment particularly challenging. While there are deep water projects that require a particular type of technology, there are also shallow and medium water type projects where classic equipment suffices. The company can easily serve all these types of projects through its capabilities.