A Scottish private sector economic development body is to collaborate with a Scot-Govt job creation quango to jointly support Scotland’s oil and gas supply chain SMEs to access new decommissioning business and explore diversification into new market sectors.
A strong position in the offshore decommissioning sector is pivotal to maximising economic recovery (MER) the North Sea, while offering growth potential for small and medium sized companies.
There is significant scope for established supply chain companies in Scotland to gain access both to the emerging decommissioning market, valued at between £8.3 billion and £11.3 billion over the next 10 years, and to potential diversification routes
New markets provide additional opportunities for existing oil and gas skills, products and services and support the supply chain’s central role in the energy transition.
Opportunity North East (ONE), NSRI and the Scot-Govt quango will hold a series of project-specific decommissioning opportunities which will present real industry challenges and enable SMEs to present their capabilities, skills and experience in relation to these challenges to operators.
The programme – which starts next month – seeks to give successful SME applicants a range of benefits including access to and feedback from end-user operators, improved understanding of operator needs, improved business cases and business development support.
Former BP boss Trevor Garlick, OBE – and chairman of ONE’s Oil, Gas & Energy sector board, said: “These new SME programmes, developed in partnership and co-funded by ONE aim to create value for industry and the supply chain by matching existing capabilities with real industry needs and ensuring that SMEs are ready and able to engage on commercial terms.
“Anchoring oil and gas supply chain SMEs long term is a key part of strengthening and diversifying the economy. These businesses provide high-skill, high-value employment and capturing a share of decommissioning work and market diversification offers them significant medium to long-term growth potential and a further route to internationalisation.”
A Scot-Govt spokesman added: “By working in partnership with ONE, we can ensure companies have the necessary skills, expertise and networks to successfully take advantage of these opportunities and realise their growth ambitions.”
17 Apr 2018