Tesco Corporation crossed the Atlantic to Aberdeen in 2006 after recognising the European market potential for its drilling technology.
The Houston-based oil service company has quietly been building its business in the North Sea and throughout Europe.
It has plans to become a major North Sea player in both the UK and Norway, as well as farther afield.
Aberdonian Doug Sedge, 52, its new vice-president and general manager for Europe, is responsible for driving growth in Europe, Russia and west Africa, with support from its bases in Aberdeen, Norway, Russia and Romania. He is already implementing a strategy to lift the company to the forefront of the European marketplace.
Previously chief executive of international energy service contractor RBG Group, Mr Sedge has gained a reputation for his ability to foster significant growth.
Applying his own recipe for success to Tesco, Mr Sedge has just unveiled plans to expand its European operations by investing up to £6million in its north-east assets, and doubling the area’s turnover in the next 12 months.
He said: “The company has spent the last two years steadily building the business in the North Sea. The next stage in our development will be to take advantage of the global demand for cost-effective drilling techniques.
“The shortage of people and equipment in our sector is worsening and investing in our technology and our people puts us in pole position to meet current demand.
“We have just created up to 22 new employment opportunities in the North Sea region to support future growth and meet our goal of doubling our European turnover in 2009.”
As part of its £6million investment programme, Tesco is in the middle of upgrading and extending its European headquarters at West Tullos in Aberdeen with a new 5,800sq ft workshop and 24,000sq ft yard. This will double its existing facilities.
A significant amount of capital is being ploughed into the purchase of new top-drive technology systems to meet North Sea demand. Top-drive technology helps to put the power into drilling.
Mr Sedge said: “When we established a presence in Aberdeen, the company focused on delivering its top-drive system to the European market. This technology has been very well received and, in response to market demand, we are further investing in our technology portfolio.
“In addition to our pioneering top-drive system, we deliver casing drilling and tubular services to a range of operators. Investment in the purchase of assets to support the planned development of these . . . services is critical to future growth in this area.
“Concentrating on advancing these other product lines, we have earmarked up to £3million out of the £6million for the purchase of capital equipment to support the development of our casing drilling and tubular services.
“We anticipate up to 35% of the company’s growth coming from the delivery of other product lines to the European market, over and above our top-drive system.”
When it launched in Aberdeen, Tesco had only two employees based at its Tullos premises. It now has 59 employees in the city.
Mr Sedge’s first foray into the oil and gas industry was in 1975 when he joined Incon Offshore and started his career as a trainee casing hand working offshore in the Middle East.
In 1977, he joined US oilfield service giant Weatherford, spending several years overseas during that period, most significantly a five-year stint in Jakarta, Indonesia, where he took up post as Weatherford’s general manager for Indonesia.
He returned to Aberdeen in 1991 and was latterly promoted to vice-president for Europe, Africa and the CIS (former Soviet Union) at Weatherford. He remained in this post until joining RBG in 2006.
At Tesco, Mr Sedge has a big undertaking ahead of him. Nevertheless, he is quietly confident. He said: “We have consolidated the business and aligned our operations in Aberdeen and Europe with market opportunities in Russia and west Africa.
“In short, the Aberdeen office will become our headquarters for all of our eastern hemisphere operations.
“Our technology and service capabilities are suited to the requirements of the North Sea and so naturally, it is a key region for us.
“Investing in our workforce will allow us to capitalise on growth opportunities to deliver our cost-effective and innovative technology to companies operating in the North Sea. Despite the current economic climate, I believe continued investment in people and technology is key to weathering the financial storm.”
A familiar face on the golf course as well as the oil and gas circuit, Mr Sedge dedicates much of his spare time to improving his handicap.
A member of the Aberdeen Oilman’s Golf Association (AOGA) committee since 2001, he was this year appointed its chairman.
Responsible for AOGA’s annual golf tournament at Gleneagles, Mr Sedge and the committee have in recent years raised more than £250,000 for local charities supporting children and young adults.
He also confesses to a passion for everything South African and every winter he heads for the delights of Cape Town with his wife, Elaine, and sons David, 27 and Alan, 25. He also spends a considerable amount of time pounding the M6 with David and Alan as they follow their team and shared passion, Manchester United.
What car do you drive?
Range Rover Sport
What gadget would you never leave home without?
My mobile phone.
What’s your favourite restaurant?
Cafe 52 in The Green in Aberdeen, but my favourite food is cooked by my wife.
Have you ever broken the law?
Yes, speeding unfortunately.
What or who makes you laugh?
My sons, as well as a lot of the TV oldies such as Fools and Horses.
Favourite book?
Sunset Song by Lewis Grassick Gibbon.
Favourite film?
The Big Chill, directed by Lawrence Kasdan.
Favourite singer/band? Many. From the Killers to the Beatles
Ideal job other than this one?
A tough one. How about a golf pro? Combining a skill I don’t have with the exercise I need.
What’s the best piece of business advice you have ever received?
I have been lucky enough to work for several good people, but one piece that sticks is “let your managers manage”.
Worst business advice?
Being told by a superior: “I would never do that”, after you’ve come to a decision.
What was your first pay packet and what was it for?
£7.50 a week working in the labs at Michelin Tyres in Aberdeen.
How do you keep fit?
Golf and walking our dogs.
What’s your biggest extravagance?
Our annual family holiday and my golf trip to Ireland with the lads each year.
What do you drink?
Red wine and the occasional whisky.
How would you like to be remembered?
As someone who tried their very best.
Education: Aberdeen Academy.
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