Ecosse Subsea Systems (ESS) said yesterday it had signed a letter of intent with power and automation technology giant ABB for it to carry out work as part of a £1billion-plus transmission link project.
It is believed the contract – expected to create 20 jobs – could be worth up to £10million for ESS, which will perform boulder clearance and pre-lay trenching prior to the laying of a transmission cable running from Spittal in Caithness to Blackhillock in Moray.
ESS will then protect and conceal the 100-mile cable, which is part of the £1.2billion Caithness-Moray transmission link project, led by SSE subsidiary Scottish Hydro Electric Transmission, to create the infrastructure needed to carry an estimated 1.2 gigawatts of renewable-energy to the national grid.
A new maintenance support ship for Shell’s southern North Sea gas operations made its first appearance in UK waters at the weekend.
Shell said the vessel, named Kroonborg, would change the way the company and partner Nederlandse Aardolie Maatschappij (NAM) operated more than 50 gas producing platforms.
It is expected to reduce the cost of operating smaller gas fields, which are becoming increasingly prevalent, by improving the productivity and safety of maintenance engineers.
Scottish engineer Weir Group said yesterday it was readying itself for a significant fall in revenue and lower operating margins because of the plunge in oil prices.
The gloomy outlook accompanying full-year results sent the Glasgow-based company’s shares tumbling nearly 10%.
Weir, which makes valves and pumps for the energy and mining industries, has been hit by a slowdown in North American oilfield activity as crude oil prices remain depressed and explorers and producers slash capital spending.
More than £85million was wiped off the value of North Sea oil firm Ithaca Energy yesterday after it said start-up from its Greater Stella Area (GSA) project would be severely delayed.
Investors were also panicking after the Aberdeen-based company revealed its latest GSA problems would cost it millions of pounds in extra costs.
Ithaca, whose share price plummeted more than 27%, does not now expect to benefit from any GSA output until the second quarter of next year, having previously anticipated a boost during 2015.
The change of plan was prompted by modifications to a floating production platform – FPF-1 – in Gdansk, Poland, taking longer than expected.
Technology is and always has been key to tapping the oil and gas reserves under the North Sea.
Patrick O’Brien knows only too well the importance of investing in the engineering and scientific know-how required to extend the lifespan of the UK offshore industry.
He is also well aware of the need for collaboration, which was a mantra of the organisation he leads long before Sir Ian Wood highlighted shortcomings in this area in his review.
Sir Ian said a lack of co-operation and “overzealous” legal and commercial behaviour among operators had increased costs, caused delays and led to poorer hydrocarbon recovery.
Technology and collaboration are at the heart of everything ITF, the Aberdeen-based oil and gas industry technology facilitator, does. Mr O’Brien is its chief executive.
More than two-fifths of the 1,000 job losses anticipated at international oilfield service firm Archer will be in the UK, it said yesterday.
Archer, which is listed on the Oslo stock exchange but run from Hamilton, Bermuda, said it had already laid off about 135 workers at its offices in Blackburn, Aberdeenshire.
A spokesman added: “Based on conversations with our clients, we anticipate that there will be an additional 290 UK onshore and offshore personnel released by the end of the second quarter in order to align with scheduled activities.”
Craig International Supplies (CIS), a division of Aberdeen-based energy service and shipping company Craig Group, said yesterday it had won new contracts worth £30million over five years.
The deals are with oil producer Chevron North Sea and un-named client described by CIS as “one of the world’s leading drilling contractors”.
CIS will supply both firms with “materials and the full range of procurement services” – such as consultancy, training, conferences, subscriptions, equipment and travel – for a period of three years, with two one-year extension options.
Sir Ian Wood charged to the defence of the new Oil and Gas Authority (OGA) yesterday, saying big pay deals for its bosses were essential for attracting the best talent.
The former Wood Group chairman and chief executive hit back at criticism of the OGA over £150,000-plus salaries for its top team.
It was Sir Ian’s Wood Review of the oil and gas industry last year that paved the way for the new regulatory body, which is now taking shape around chief executive Andy Samuel.
In his blueprint for maximising economic recovery for the UK North Sea amid stiff global competition, Sir Ian said a new regulator with broader skills and capabilities was needed to “significantly enhance” co-ordination and co-operation in the industry.
A trio of recruits to the senior management team at the new North Sea oil and gas industry regulator are poised to join the ranks of the UK’s best-paid civil servants.
Their salaries and those of existing members of the Oil and Gas Authority’s executive lineup has prompted concern about excessive pay.
The recently launched OGA is offering £150,000-plus salaries for the people it needs to fill three top level posts.
Two of the vacancies are in Aberdeen, with the Granite City-based regulator seeking a director for offshore exploration and production and another for technology and projects to join its top team.
Energy service giant Halliburton is still refusing to say how many jobs are on the line in Aberdeen – or any other location in operations in more than 80 countries.
The job reduction move was announced earlier this month but only in worldwide percentage terms.
The firm will give no more details about the redundancies, which leaves an estimated 2,700-plus workers in the UK, including at least 1,600 in the Aberdeen area, fearing the worst.
Private-equity firm Blue Water Energy (BWE), which invests exclusively in the energy industry, is pouring £163million into a new North Sea oil and gas explorer.
Sadly for the industry in Scotland, the new firm is based on the other side of the North Sea and will focus only on exploration activity in Norwegian waters through licensing rounds, farm-ins and acquisitions.
It has been launched by a diverse and experienced management team, including former Agora and Cairn Energy Norwegian operations manager Callum Smyth and former RIT Capital Partners private-equity specialist Olivier Hopkes.
Oil and gas recruiter Frontier International has appointed a new finance chief to help push the Aberdeen-based firm on to further global growth.
Frontier, founded in 1999 by oil industry engineers Mark Clarke and Paul Radcliffe, said yesterday Bill Buchanan had joined it in the newly created role of group financial controller.
Mr Buchanan has had a string of management roles in the oil and gas industry, most recently as global operations controller for north-east energy service company Senergy.
Administrators for Highland firm MacKellar Sub-Sea and its subsidiaries report plenty of interest in the businesses.
Grantown-based MacKellar collapsed last week, leaving nearly 100 workers facing an uncertain future after the bosses called in administrators.
The group employs 97 full and part-time staff, of which 86 are employed at the main Grantown site – a five-acre purpose-built fabrication and assembly facility.
A further 11 people work for MacKellar subsidiary Tritech Nairn, a grit-blasting and painting operation at premises on the former RAF base in Kinloss.
It is the second business failure in 10 years for the MacKellar family, following the collapse of 30-year-old company MacKellar Engineering in 2005.
Aberdeen pipeline technology firm Online Electronics is under new ownership after being snapped up by Norway’s IK-Group.
The value of the deal, which does not include a subsidiary, Online Valves, was undisclosed.
It is expected to lead to 10 new jobs in the Granite City in the coming year through increased market share driven by research, development and special engineering projects.
Aleron Subsea said yesterday it had secured a £3.1million deal to supply specialist equipment to a leading marine services firm.
Aleron, which recently relocated its head office from Singapore to the South Fornet Business Centre, just outside Westhill, specialises in remotely operated vehicle (ROV) rentals.
It said its latest contract would see it supply two work-class ROV systems and associated technology for shallow and deepwater applications around the world.
Scottish oil and gas expertise is as highly regarded around the world as people in this country like to believe, according to new research findings.
More than 260 senior industry leaders from around the world took part in the Scottish Development International (SDI) survey, which highlights the influential role of Scots in key energy centres such as Houston, Calgary and Perth.
Nearly four-fifths (78%) highlighted Scotland's important role in the global industry, with almost as many (74%) recognising it as one of the world’s best training grounds for the sector.
Nearly three-quarters (71%) said Scottish employees were among the most experienced and dependable.
Apache North Sea boss Jim House insists the UK oil and gas industry still has a bright future but he has also joined the growing clamour for Chancellor George Osborne to usher in new tax breaks.
Mr House, region vice-president and managing director at Apache North Sea (ANS), told the Press and Journal yesterday there was “no better time” than now to radically overhaul a fiscal regime which was not helping oil and gas firms.
The current system is not fit for purpose, he said, adding that the industry itself also needed to change following the sharp slump in oil prices.
More details have emerged of plans for new north-east headquarters for drilling contractor KCA Deutag.
The company announced on Wednesday it was consolidating its two offices in Altens, Aberdeen, to a new site on the City South development five miles south of Europe’s energy capital.
The relocation news coincided with the firm revealing plans to cut up to 230 jobs in Aberdeen as it grapples with a slowdown in North Sea drilling.
Property developer Dandara said yesterday it would start work later this year on the new building – the first major premises at City South, Portlethen – with completion expected in summer 2016.
North-east engineering company Ace Winches has beefed up its boardroom team as it eyes growth in international markets.
The firm, based at Towie Barclay Works, near Turriff, officially unveiled Colin Black as its new chief commercial officer yesterday, although he joined Ace late last year.
He was previously managing director and vice-president of Aberdeen-based oil and gas service firm Optima Solutions UK.
A Spanish takeover of Talisman Energy and its 50% stake in a struggling UK joint venture is “on track” to complete during the first half of 2015.
Talisman insisted yesterday the £5.3billion deal struck with Spain’s Repsol in December was unaffected by hefty losses in the North Sea as oil prices nose-dived last year.
The Canadian company said its UK partnership with China’s Sinopec suffered net losses of £622million in the fourth quarter of 2014 and £692million over the whole of last year as a result of lower oil prices and higher decommissioning and development cost estimates.
Its final quarter figure included after-tax write-downs totalling £416million for Talisman’s share alone and resulted in a £122million funding charge in the Calgary-based company’s 2014 results.
A key oil and gas industry asset which has operated in the north-east for nearly 30 years has just been sold in a deal potentially worth £4.5million.
Marine service group James Fisher and Sons said yesterday it had bought the National Hyperbaric Centre (NHC) in Ashgrove Road West, Aberdeen.
The facility was previously owned and run by managing director David Smith, who took it over in 2005, together with business partner Tom Brannan, with the aim of creating a worldwide centre of expertise.
Offshore standby vessel operator Atlantic Offshore Rescue (AOR) has appointed a new managing director.
Matthew Gordon joined the Aberdeen company at the start of the year and replaces John Bryce, who gives up the helm after playing a key role in the firm’s recent growth. Mr Bryce will continue to be involved in AOR in a consultancy capacity, the company said.
Record numbers from across the global offshore oil and gas industry are expected to attend Subsea Expo 2015 in Aberdeen this week.
Europe’s largest annual subsea conference and exhibition showcases the expertise and technology of a UK industry generating about £9billion in revenue annually and supporting around 60,000 jobs.
More than 6,000 people are registered to attend the event, organised by trade body Subsea UK, which takes place at Aberdeen Exhibition and Conference Centre from Wednesday to Friday.
Energy service giant Weatherford International is axeing 9% of its global workforce as the job cull across the oil and gas industry in response to low crude prices continues.
The latest redundancies mean about 5,000 people among Weatherford’s 56,000-stong head-count will soon be out of work.
But the group’s largely Aberdeen-based eastern hemisphere operations, serving markets such as the North Sea, Middle East, East Asia, Australia and west Africa, will be spared the worst.
