The UK subsea sector is on the brink of a new era as the decade draws to a close, according to leading industry spokesman Alistair Birnie.
The chief executive of industry body Subsea UK, said the outlook for firms next year and beyond was as much about grasping important new opportunities as tackling the challenges lying ahead.
He said: “Subsea will continue to be a major part of the upstream economy and after a slow start to 2010 the export markets will be a strong driver for an increasing pace through the rest of the year and onwards.”
Subsea activities offshore of Brazil, Australia and the Barents Sea are expected to keep UK firms busy for years.
UK continental shelf business is also predicted to pick up, boosted by key projects scheduled for the second half of the year, although the climate for North Sea field development is expected to remain challenging.
Mr Birnie said skills would continue to be a key factor in the industry’s prospects, adding: “Learning will play a central part in ensuring that newcomers and existing staff continue to develop to meet the increasing demands.
“While we brace ourselves for a tough start to 2010, the year is expected to bring important opportunities; both in oil and gas and renewables. Although we will all have to work hard to secure the work, this next decade promises to be a very interesting time.”
In a review of 2009, Subsea UK said export markets and contract awards – combined with expertise and adaptability – were key to businesses staying strong and this was likely to continue in 2010.
It added: “The sector’s ability to evolve and grow even in the most adverse of times has shone through, with our members not just surviving but actively securing positions in new markets.
“It is vital that the industry continues to learn from this economic downturn, like it has done others, to ensure it remains competitive and is well financed to take on the new era of major projects.”
While there had been a major dip in subsea drilling this year, affecting the number of wells completed, Subsea UK said export markets played a pivotal role in stabilising the industry and maintaining employment.
Maintenance and repair work also kept contractors busy, the organisation added. Subsea UK also noted signs that the UK Government was now seeing energy as an area for strategic focus, with “welcome concessions” made for upstream oil and gas exploration.
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