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14 OFFSHORE EUROPE 2007 Sosialurin 29. august 2007
FøroyaTele, the largest telecom
company in the Faroes, is about
to sign a contract with one of the
world’s largest oil companies
British Petroleum or better
known as BP. This is a five-year
contract and could be close to
100 million kroner writes
Sosialurin in its Monday edition.
The contract is to link two of
the producing oilfields west of
Shetland, Schiehallion and Clair
into the SheFar-cable, which is
currently being laid between
Shetland and the Faroes. This
contract could also become the
door opener for Føroya Tele as a
supplier of various telecommuni-
cations to a large oil company.
This is the largest single con-
tract ever signed by Føroya Tele.
Sosialurin understands that
negotiations regarding this very
exciting cooperation between one
of the world’s largest oil
companies and the largest IT
Company in the Faroes are in the
final stages.
Considerable
savings for BP
There will be considerable
savings for BP as they modernise
the communications between
oilfields where BP is the
operating company and the land-
based head office. To date BP
has been forced to send all data
and send IT specialists to the
production site to deal with the
many issues. This situation
requires both transport and
accommodation onboard the
production platforms involved.
By linking these two production
units with cables and tying into
the SheFar-cable, which will run
from Scotland to Shetland to the
Faroes, BP will be able to send
almost unlimited amounts of data
ashore. BP will gain direct
access to the Scottish mainland
by the SheFar-cable.
It is understood BP will
initially rent data capacity for a
five-year period.
The linking of oil platforms
west of Shetland ashore is not a
new idea. The demand for a
permanent link ashore has been
around for many years and a
dialogue has been on-going on
how to link oil platforms to the
mainland. Already when the
FarIce-cable was laid, this issue
was debated, and when the
SheFar-cable became a reality a
link between oil platforms and
the mainland also became a
natural part of the dialogue.
It is quite clear if we look
ahead and at the development of
an oil production west of
Shetland in general, that it may
become a reality to link future
oil producing fields by the Faroe
border to this cable or more
appropriately to the other
producing oilfields already
connected to the SheFar-cable.
There is, and there will be an
ever increasing requirement from
the oil companies for tele-
communications, which is not
being met today. For Faroe tele-
communication companies an oil
industry west of Shetland and
close to the Faroe border could
be worth its weight in gold.
Change routines
So then, what can oil companies
save by cooperating with a Faroe
telecommunications company?
According to sources
Sosialurin has spoken to the
expenditure saved by BP could
be substantial as data can be sent
directly ashore instead of
transporting experts onboard
platforms and the considerable
effort involved saved. The
question quite simply is also of
installing modern telecommuni-
cations onboard the oil platforms
and the FPSO vessels. This
solution demands a cable and IT
capacity. An oil company does
not normally have telecommuni-
cations as its core interest area,
and therefore it is sensible to
cooperate with a telecommuni-
cations company capable of
delivering such a service. This is
where Føroya Tele comes into
the picture, as it is capable of
delivering both cables and the
services required. It could be
asked if not this was a task for
British Telecom for example, and
an answer could be that this may
be regarded as too small a task
for the larger telecom companies.
On the other hand a certain size
of telecom company is required,
which the oil companies can
fully rely upon as a partner.
Føroya Telecom seems to have
such a required size as a deal is
on the doorstep.
SheFar-cable in the
Faroes in September
The question is also what other
services could come in the wake
of this cooperation. For example,
broadband and other wireless
services. A futuristic question is
how a company like Føroya Tele
could handle all
telecommunications services
onboard an oil platform.
It is understood that the
SheFar-cable will come ashore in
the Faroes in September and the
cables to Scheihallion and Clair
are in the process of being laid.
Sosialurin has tried to get a
comment from the Føroya Tele
CEO, Mr Kristian Davidsen, but
he does not at the moment wish
to make any comments, but he
will confirm that negotiations
have been with BP regarding
cooperation.
The whole issue has been
raised in public before however.
At a meeting at the Oil Thinge
recently, it was mentioned that
Føroya Tele is working on
intentions of establishing a close
cooperation with a giant oil
company and in the event these
Føroya Tele lands lar
By Jan Müller, journalist
and Editor in Chief
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