Scottish Secretary Jim Murphy made a pledge yesterday to be the champion for the UK subsea industry.
He told a press conference at Europe’s biggest subsea event – Subsea 09 – he would address any difficulties that firms in the sector had in accessing credit for growth.
Mr Murphy earlier told the two-day conference in Aberdeen that the subsea oil and gas industry’s contribution to Scotland’s modern prosperity had been profound.
He added: “I know those contributions will continue. You have long been regarded worldwide as exceptional operators in difficult terrain and of course we now all find ourselves in some difficult economic circumstances.
“Given these challenging times, the UK Government is doing all we can to provide support through the downturn and lay the foundations for future sustained growth.”
Mr Murphy said it was vitally important in difficult economic times not to not lose sight of the real strengths and success stories in the economy, adding: “The story of subsea oil and gas has been a strong one for Scotland and certainly today remains an excellent example for us to demonstrate how Scottish companies and their employees can be right at the forefront of cutting-edge technology development.”
Meanwhile, the chief executive of oil and gas engineering and construction contractor Subsea 7 called for closer collaboration between operators and contractors.
Mel Fitzgerald said this could help to take unnecessary costs out of the system to ensure long-term sustainability for the oil and gas industry, in particular in the North Sea. He asked operators not to focus solely on margin reduction but on removing non-value cost, and defended the supply chain’s need to retain a realistic margin to maintain necessary investments in assets, equipment and people.
Mr Fitzgerald told the conference: “This is not about high prices being charged by contractors. There has been cost inflation in recent years and unnecessary fat has built-up in the system that we have to collectively get rid off. Now is an opportune time to do it.”
Mr Fitzgerald called for operators to allow contractors into the development process much earlier, for an integrated planning approach to identify and make cost savings. He added: “The UK oil and gas supply chain is an exporter of expertise globally. If it cannot survive in the UK it will be forced, through necessity, to look for other more profitable basins globally in which to do business.”
Mr Fitzgerald said the last thing that was needed was a return to the old adversarial relations between contractors and operators.
Subsea 09 continues at Aberdeen Exhibition and Conference Centre today. About 2,000 delegates are expected at the event organised by industry body Subsea UK, which features technology and the latest innovations and services from more than 100 exhibitors.
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