Consolidation at Mongstad

Traditionally, the distribution of supply bases on Norway’s west coast north of Boknafjorden was split among the three Norwegian oil companies as follows: Saga Petroleum used Fjord Base in Florø, Norsk Hydro used the supply base at Mongstad, and Statoil used CCB Ågotnes on Sotra. During the negotiations in the Norwegian Parliament (Stortinget) on Gullfaks in 1981, it was decided that the field would be supplied from Florø and Ågotnes.[REMOVE]Fotnote: Innst. S. nr. 365 (1980–81) Innstilling fra industrikomitéen om ilandføring av gass fra Statfjordfeltet, 11; Bjørn Vidar Lerøen, 34/10 olje på norsk – en historie og dristighet (Stavanger: Statoil, 2006), 75. This formed part of regional policy and aligned with the Petroleum Act, the Ten Oil Commandments, and a 1973 white paper – stating that petroleum activity on the Norwegian continental shelf should benefit the wider national economy.[REMOVE]Fotnote:Lov om petroleumsvirksomhet (petroleumsloven) av 1996, https://lovdata.no/lov/1996-11-29-72/§1-2, accessed November 8, 2024; «De ti oljebud», https://www.norgeshistorie.no/kilder/oljealder-og-overflod/K1905-de-ti-oljebud.html, accessed November 8, 2024; «St. meld. nr. 25 (1973–74)», https://www.regjeringen.no/no/dokumenter/meld-st-25-1973-1974/id708378/, accessed November 22, 2024.

By the spring of 2013, more than 30 years had passed since the decision to develop the Gullfaks field. Saga Petroleum had long since been acquired by Norsk Hydro, and Hydro’s oil division had merged with Statoil in 2007.

Statoil argued that the old base allocation was outdated and that it was time to assess options to co‑locate, specialize, and run base operations more cost‑effectively. Not everyone was thrilled.

Relocation notices despite political pushback

When, in April 2013, Statoil opened the door to changing the base structure and moving much of the base activity from Ågotnes and Florø to Mongstad, local politicians in Flora municipality (of which Florø is a part) and in Sogn og Fjordane reacted strongly. Worst case, the change could cut the number of base employees from 500 to 250, leaving many in the county without work. Politicians also feared that many supplier companies, such as Nor Tekstil, would move to Mongstad.

While Hordaland county would not lose as much, since Ågotnes and Mongstad were both in the same county, roughly 30 minutes south and one hour north of Bergen, respectively, the potential consequences for Sogn og Fjordane were far greater.

Politicians around Fjord Base argued that Statoil’s plan violated license terms for operating Gullfaks and other fields, and that the minister should step in. The Minister of Petroleum and Energy, Tord Lien (Progress Party), declined to intervene.[REMOVE]Fotnote: “Fryktar oljenæringa kan få eit hardt slag under beltet”, NRK, April 18, 2013, https://www.nrk.no/vestland/reagerer-pa-fjordbaseplanar-1.10990815; NRK, “Statoil vil kutte aktivitet i Flora, mange arbeidsplassar kan forsvinne”, October 31, 2013, https://www.nrk.no/vestland/fryktar-for-arbeidsplassar-i-flora-1.11331105; NRK, “Ministeren vil ikkje løfte ein finger for oljebasen i Florø”, December 4, 2013, https://www.nrk.no/vestland/ingen-lovnad-fra-ministeren-1.11395757, all accessed October 31, 2024.

Perhaps he had listened to Statoil’s arguments about cheaper and more efficient sailing patterns, specialization, economies of scale, and a duty to make money.

On 12 November 2013, Statoil’s leadership group decided the reorganization would proceed as outlined.[REMOVE]Fotnote:“Har bestemt å byggje ned oljebasen”, NRK, November 12, 2013, https://www.nrk.no/vestland/har-bestemt-a-byggje-ned-oljebasen-1.11353708, accessed October 31, 2024.

In southern Norway the new base structure would look like this: Fjord Base in Florø would become the nationwide base for casing and tubing, while continuing to ship supplies to Snorre, Visund and Tordis/Vigdis. CCB Ågotnes would be the subsea base for southern Norway, Dusavik would supply Statoil’s southern oil fields, and what from 2015 became CCB Mongstad would be Statoil’s largest supply base, serving around 20 installations (see fact box).

Statoil had filed the relocation notice. From the summer of 2015, new address labels had to be printed and Statoil had to start packing.

123 truck trips

While the loudest protests came from Sogn og Fjordane, the biggest moving job was between Ågotnes and Mongstad. It was not only Gullfaks inventory that had to be moved.

The move started in May 2015. When it concluded on 26 February 2016, inventory for ten platforms had been relocated. In total, 123 truck trips were made between the two towns.

Bilde

In a typical house move, it is not unusual that, partway through, the writing on the boxes gets reduced to “odds and ends from the apartment.” During the move to Mongstad, those in charge always knew exactly what was to be moved by which truck. If a critical part was needed for repairs on, say, Gullfaks A, it had to be clear at all times where the part was – at Ågotnes, in Florø, at Mongstad, or on the road.[REMOVE]Fotnote: Janne Thomassen (Supply Manager, Equinor) and Arve Jostein Soltveit (Operations Coordinator and Security Officer, Equinor), conversation with Shadé B. Martins and Julia Stangeland, Mongstad, September 17, 2024.

“Mongstad the Great”

Frode Hodneland, Logistics Coordinator for returns, was working at Ågotnes when news of Statoil’s plans came. He recalls that many at Ågotnes were worried, but spirits lifted in 2015 when it became known that Mongstadbase AS was purchased by CCB AS, the company operating the Ågotnes base. In other words, the company they worked for would run the base where Statoil would have much of its activity going forward. Hodneland joined the move along with several others.[REMOVE]Fotnote: Frode Hodneland (Logistics Coordinator, Return Mongstad), conversation with Shadé B. Martins and Julia Stangeland, Mongstad, September 17, 2024.

At CCB Mongstad there are today around ten Equinor employees and 500 CCB employees. Together with subcontractors, they plan, pack, and send goods to around 20 installations.

About 50 trucks arrive at the Mongstad supply base every day. Each month, the base handles around 90 vessel calls for supplies. Between 11,000 and 13,000 lifts (crane lifts) are carried out each month—goods outbound and goods in return. Altogether, that comes to about 45,000 tonnes per month! Bulk—liquid commodities—comes on top.[REMOVE]Fotnote: Janne Thomassen (Supply Manager, Equinor) and Arve Jostein Soltveit (Operations Coordinator and Security Officer, Equinor), conversation with Shadé B. Martins and Julia Stangeland, Mongstad, September 17, 2024.

The supply base at Mongstad is Equinor’s largest supply base and, in fact, one of the largest supply bases in the world—measured by annual tonnage handled at the quayside.[REMOVE]Fotnote: Strilen, “– Mongstad mellom de største basane i verda. Kan få storinnrykk av servicebedrifter”, January 25, 2014, 4–5; Nordhordland, “Skal verta verdas største forsyningsbase: – Flyttinga er i gang”, May 23, 2015, 6.