Orkney’s wave and tidal-energy device test centre has said jobs will go as part of restructuring in response to the industry’s “changing landscape and market demands”. But the European Marine Energy Centre (Emec) did not say how many roles were affected. Managing director Neil Kermode said: “The last year has been particularly difficult for the industry, and due to current market conditions I am going to have to restructure Emec.
Green-energy technology development body Wave Energy Scotland (WES) has struck a deal allowing it to tap into expertise at Aquamarine Power, the firm behind the Oyster wave-power machine. The three-month tie-up is known as Project Know-How and allows WES, which was established as part of Highlands and Islands Enterprise late last year at the request of the Scottish Government, to benefit from knowledge gained through the development of Oyster technology.
Airpac Bukom Oilfield Services grew profits and revenue during the year to March 31 despite an “increasingly challenging” trading climate, the Aberdeenshire firm’s owner said yesterday. Reporting group results, equipment rental specialist Vp said its Kintore-based Airpac Bukom subsidiary increased operating profits to £2.8million, from £2million the year before, while revenue rose by £1.3million to £21.5million.
Energy service firm NorSea Group (UK) said yesterday it was expanding its activities to take in the “small piece” decommissioning market. It revealed it had already secured a “major” decommissioning contract, serviced through its deepwater support base at Smith Quay in Peterhead, and was actively tendering for other opportunities in this growing sector of the market. The Norwegian-owned firm gave no further details of the new contract, which coincides with a new senior management team being set up to lead the company’s growing activity across Scotland.
Dutch oil and gas producer Oranje-Nassau Energie (ONE) announced its entry into the UK North Sea yesterday after snapping up 50% of the Sean field. The move increases the Amsterdam-based firm’s total production to more than 20,000 barrels of oil equivalent per day and is part of its “long-term reserve base growth strategy”. Sean is in the southern sector of the North Sea and ONE is now the operator after acquiring its stake from Shell and Esso Exploration and Production UK, which each held 25%. The remaining 50% is held by SSE E&P UK.
A record number of firms are flying the flag for Scotland at the Oil and Gas Asia show in Malaysia this week. South-east Asia is fast becoming a strategically important market says Neil McInnes, who looks after the region for Scottish Development International (SDI). The size and scale of south-east Asia suggests it has the potential to one day rival some of the other leading markets in Asia Pacific. Together, the 10 countries in the Association of South East Asian Nations (ASEAN) represent Asia’s third largest economy – and the world’s seventh largest – with a combined GDP (gross domestic product) of £1.6trillion.
Amec Foster Wheeler (AMF) said yesterday the value of its global order book grew by £400million to a record £6.7billion despite “challenging” conditions in the first four months of 2015. The engineering and project management giant added the rest of 2015 was likely to continue the recent pattern of growth in downstream and Middle East oil and gas markets offset by tougher conditions elsewhere. AFW also said Amec’s integration of the Foster Wheeler business since a £2billion takeover last year was progressing according to plan.
Integrated subsea services firm Harkand has completed its first project in the Caribbean for BG Trinidad and Tobago. The remotely-operated vehicle (ROV) subsea support work lasted 75 days and was carried out by the team on board Harkand’s multi-purpose vessel the Go Electra in the waters off Trinidad and Tobago.
An Invergordon firm that was founded as a ferry operator nearly 50 years ago and evolved to meet the needs of a growing oil and gas industry has been swallowed up by Global Energy Group. Aberdeen and Inverness-based Global said yesterday it had acquired MF Marine Operations through its Caledonian Towage subsidiary. Global – owned by Highland businessman Roy MacGregor and his family – did not say how much it paid Colin Watson, MF Marine’s owner and managing director, for the business.
Trade body Energy North has named Stuart Deed as its new chief executive. Having worked with many of the industry’s leading names, including ExxonMobil and SSE, Mr Deed brings more than 25 years’ experience to the post. Most recently he has been operating as a consultant, supporting young and evolving businesses to navigate the sector.
A new oil and gas service business has launched in Aberdeen, creating 16 jobs. Initially based in Tullos, Aberdeen, EnerQuip plans to move to a larger facility in the north-east in early 2016 to support anticipated growth. It has been formed by three former senior bosses of Granite City-based AMC Engineering – Andrew Polson, Dave Clark and John Duncan – who together have more than 50 years’ oil and gas experience.
A record number of companies are taking part in the latest Scottish trade mission to the Oil and Gas Asia (OGA) industry showcase in Kuala Lumpur, Malaysia. The Scottish Enterprise (SE)-led delegation at the event, being held from today until Thursday, has 15 firms on board. As you might expect, there is a strong presence from the north-east as businesses in the energy sector look to expand overseas.
Ithaca Energy has misled shareholders by hiding “material facts” related to its Greater Stella Area (GSA) development, the Canadian lawyer at the heart of a lawsuit against the North Sea oil company said last night. Toronto-based Andrew Morganti said he was pursuing a class action on behalf of investors who bought Ithaca shares between August 12, 2014 and February 25, 2015. He was speaking after Ithaca, which is Canadian owned but has its headquarters in Aberdeen, revealed it had received a statement of claim “from a law firm that advertises itself as undertaking investor lawsuits”.
Aberdeen firm Hydro Group has started work on a green-energy development in France under a £2.5million contract won as a result of links it established with a French company last year. Hydro, which designs and manufactures cables and connectors for subsea and onshore use, said yesterday the Franco-Scottish consortium it formed with Wenex Equipments was to manufacture and install array cabling infrastructure on the SEM-REV marine renewables project offshore of Le Croisic on the French Atlantic coast. Awarded by Ecole Centrale Nates (ECN), the six-month contract commenced earlier this year. Hydro, one of a string of consortium partners involved in the work, has also been showcasing its marine-renewable energy products and expertise at the THETIS Marine Renewable Energy Conference in Nantes, France, this week.
The Energy Jobs Taskforce that was set up to support jobs in the troubled North Sea oil and gas industry is hosting a gathering of some of its key players today. Oil and Gas Athority chief executive Andy Samuel, BP North Sea boss Trevor Garlick, Oil and Gas UK chief executive Deirdre Michie and Scottish Enterprise energy and low-carbon technologies director Maggie McGinlay are among those taking part in the private meeting. The taskforce was launched earlier this year by First Minister Nicola Sturgeon to support people trying to find work.
We’re all acutely aware of the challenges which face the oil and gas sector right now – many of you reading this article will be either directly or indirectly affected by the marked and sudden reduction in the oil price and the subsequent impact on the sector. We estimate that over 5,000 jobs have been announced as being lost or at risk. While we know that the oil price fall has brought the sector into sharp focus, the current situation is as much about regeneration and readjusting our cost base. That’s why in January this year Scotland’s First Minister, Nicola Sturgeon, announced the creation of a taskforce to help tackle not just the immediate impact of the volatile oil price but also the pressing need for the industry to evolve, transform and modernise.
Amec Foster Wheeler (AFW) said yesterday it was still consulting workers in Aberdeen about possible redundancies, with the number of potentially affected jobs now standing at 43. This down from a few weeks ago when the project management and engineering giant said it was speaking to 149 individuals about 64 potentially affected roles. An AFW spokeswoman said yesterday there were no plans to radically reduce engineering numbers in Aberdeen, where the company employs about 3,000 people among a 40,000-strong workforce in 50 countries.
Firms which flew the flag for Scotland at the world’s biggest oil and gas show are already reaping the rewards of taking part in the event. Early feedback from 12 of the 58 companies supported by Scottish Enterprise (SE) to attend the Offshore Technology Conference (OTC) in Houston in the US earlier this month shows they expect to increase their international exports by £50million over the next three years as a direct result. Contracts were signed during the week for projects in the Gulf of Mexico and Brazil, while some of the firms received invitations to tender for other work around the world.
Diversification into oil and gas work has helped Aberdeenshire firm Xtreme Business Solutions more than double its turnover. The communications network infrastructure specialist was previously focused mainly on the construction industry. But the shift of emphasis towards more work with firms linked to offshore sector, with help from economic development agency Scottish Enterprise (SE), has seen turnover rocket by 50% in three years, to £3.8million in 2014.
The UK's new energy secretary has reassured North Sea leaders that she views safeguarding the oil and gas industry as one of her "top priorities". Amber Rudd said the sector was poised for a “new lease of life" following tax changes announced earlier this year. Prime Minister David Cameron appointed her to run the Department of Energy and Climate Change (Decc) in this week's reshuffle, replacing Liberal Democrat Ed Davey.
Oil and gas bosses and private-equity funds are thought to be planning a £6billion-plus raid on North Sea energy assets. Investors including Riverstone Energy, Carlyle Group and Blackstone are believed to be in talks to buy producing assets or struggling exploration and production companies. The firms declined to comment but a report said yesterday they were hiring “high-profile” industry executives who can use their experience to drive costs lower by introducing efficiencies. Fresh investment in the North Sea has been hampered in recent years by rising costs, taxation concerns and – more lately – lower oil prices.
Oil producer EnQuest said yesterday its plans for the North Sea were “on schedule and on budget” for its target of more than doubling output from its assets in the UK. In its latest operational update, the firm said daily production for the first four months of 2015 averaged 22,601 barrels. This was down from 25,597 a year earlier, which the company said was mainly due to a shut-in on the Don fields and new wells boosting production from Thistle and Deveron in 2014.
Decom North Sea (DNS), the representative body for the offshore decommissioning industry, has announced the full programme for its flagship Decom Offshore 2015 event. Decommissioning – The Economic and Operational Challenges is sponsored by DNV GL and takes place at Aberdeen Exhibition and Conference Centre on Wednesday, May 27. It will support and focus on the cost and efficiency challenges facing the growing decommissioning sector.
North Sea cash flow is enough to fund all of Cairn Energy’s strategic goals, including its exploration plans for Senegal, the Scottish oil firm said yesterday. Speaking at the Edinburgh firm’s annual general meeting, chief executive Simon Thomson said: “Cairn seeks to deliver sustainable growth in value for shareholders from a balanced exploration and production portfolio. “That balance is provided from a combination of the attractive mature basin positions that we have built in the North Sea and an extensive frontier and emerging basin exploration portfolio.
Ithaca Energy said yesterday its operating costs were down by about 30% from a year ago as the global oil and gas industry adjusts to lower crude prices. First quarter results from UK North Sea-focused Ithaca showed it has reduced the costs associated with each barrel of oil it produces to less than $35. The Aberdeen and Calgary firm also highlighted the impact of tax changes announced by Chancellor George Osborne in the March Budget.
