The maritime and offshore industries continue to face significant challenges when procuring vessels, equipment or services in Asia, according to a survey conducted by INTSOK, the Norwegian Oil & Gas Partners organisation and released in Singapore today (March 20 2014).

Working in conditions of over-capacity and financially constrained markets, customers still require more detailed and bespoke work, both to gain commercial advantage and comply with new environmental regulations.

The survey concludes this is a major factor driving demand for more and better cost-efficient solutions. INTSOK surveyed leading shipyards in Singapore and South Korea, marine engineering companies in Europe and Asia, Norwegian oil and gas industry suppliers, oil companies and drilling rig operators.

It adds that Norwegian oil and gas industry suppliers face significant challenges in the procurement process when Asian yards are awarded construction contracts for Norwegian Continental Shelf installations.

It identifies how, where and when suppliers need to act to win contracts in a changing global oil and gas market.

The objective is to help Norwegian suppliers become preferred suppliers by being included in energy majors' Approved Vendor Lists (AVL) and the Asian yards' Makers List – a necessity for companies hoping to win contracts.

Suppliers must market themselves to the oil companies during the FEED and Pre-FEED phases of a project, much earlier than was previously thought necessary, to be on these preferential lists, the survey says.

Suppliers need more than relevant project experience. They also need to build trust, be flexible, focus on price, meet deadlines and respond quickly.

The report emphasised the importance of seeking professional legal advice when doing business in Asia, as local terms and conditions differ from contracts in other areas.

For example, there are distinct differences between Norwegian fabrication contracts to Asian yard contracts. Balance between parties, the completeness, and crucially the interpretations of terms incontracts can be different. Applicable laws, dispute resolutions, and legal enforcement are also important issues to understand when doing business in Asia.

The report notes cultural perspectives and business practices in Asian markets are vital to know to be successful in winning contracts in the region.

A focus on courtesy and respect are of vital significance in Asia, the survey says.

To understand the expression, "Asians do business heart to heart," says much about the importance of building trust, respect and relationships between two potential business partners and these sentiments came out strongly from the companies surveyed.

The survey and findings are available upon request from INTSOK either hard copy or soft copy. It was conducted by INTSOK at the end of last year.

The findings were announced during a Norwegian Procurement and Finance Day, organised jointly Innovation Norway, the Royal Norwegian Embassy in Singapore and the Norwegian Business Association in Singapore (NBAS).

The event was held in conjunction with the Asia Pacific Maritime conference and exhibition at which more than 30 Norwegian maritime companies are exhibiting.

Delegates at the seminar also discussed financing issues related to procurement with representatives from Export Credit Norway and the Norwegian Institute for Export Credits (GIEK), the fund and risk taking arms in Norway’s export financing system respectively.

DNB Bank, the leading Norwegian Bank, was a sponsor of the event and had senior executives attending.

Egil Rensvik, Science and Technology Counsellor from the Royal Norwegian Embassy, Singapore & Innovations Norway, gave a presentation on New Technological Solutions for Green Shipping this morning.

These events showcased Norway’s strengths and capabilities in the industry – ranging from know-how in environmentally sound practices to efficient procurement processes, to alternative financing.

Asia Pacific Maritime 2014 runs from 19 – 21 March 2014 and is at the same venue as the Norwegian Procurement and Finance Day and is held on level 1 and Basement 2 of the Marina Bay Sands Conference and Exhibition hall.

The full programme for the Norwegian Procurement & Finance Day is attached.