Economic Report 2017

E C ONOM IC R E P OR T 2 0 1 7

Supply Chain for the Quad 204 Project AĨter 1ϱ years oĨ oƉerating in harsh conditions and Ɖroducing nearly ϰ00million ďoe, the &W^O ;Ĩloating, Ɖroduction, storage and oĨĨloading ǀesselͿ serǀicing the ^chiehallion and Loyal Ĩields, 17ϱ Ŭilometres ǁest oĨ ^hetland, had to b e r e p lace d t o m aint ain p r oduct ion fr om t h e fie lds. T h e r e de v e lop m e nt w as one of t h e m ost com p le x e ngine e r ing ch alle nge s unde r t ake n b y BP and it s p ar t ne r s and h as inv olv e d const r uct ing and inst alling a p ur p ose - b uilt F P SO ʹ the Glen Lyon͖ a comƉlete uƉgrade oĨ the suďsea inĨrastructure͖ and the start oĨ a maũor drilling camƉaign͘ The Ɖroũect is edžƉected to unlocŬ a Ĩurther estimated ϰϱ0 million ďoe, edžtending the liĨe oĨ the Ĩields ďeyond 20ϯϱ͘ Ov e r £ 2 b illion of cont r act s w e r e aw ar de d t o com p anie s acr oss t h e UK. T h e sup p ly ch ain cap ab ilit ie s r e q uir e d t o design and manuĨacture the sƉecialist eƋuiƉment associated ǁith the Yuad 20ϰ Ɖroũect, as ǁell as the engineering edžƉertise reƋuired Ĩor the suďsea control system and hooŬͲuƉ and commissioning, are ǁellͲestaďlished and highly com p e t it iv e in t h e UK. F igur e 8 de p ict s t h e locat ions of Q uad 204 UK cont r act s w it h a v alue of ov e r £ 1 m illion e ach . ^ome 1ϯ oĨ these contracts ǁere oǀer ά10 million in ǀalue, more than halĨ oĨ ǁhich ǁere aǁarded to comƉanies w it h in t h e UK b ut b ase d out side of A b e r de e n. R osy t h - b ase d Bab cock fab r icat e d 7 3 sub se a st r uct ur e s for t h e Ɖroũect ʹ one oĨ the largest suďsea Ĩaďrication orders Ɖlaced in the UK in ϱ0 years͘ Other Ŭey contracts ǁere aw ar de d t o A b e r de e n- b ase d T e ch nip for t h e sup p ly and inst allat ion of fle x ib le r ise r s; t h e One Sub se a facilit y in L e e ds for sub se a t r e e s; and Br om b or ough and Knap h ill b ase d A F Glob al for t h e div e r le ss p ip e line conne ct ion sy st e m and t ooling. In addition to these larger contracts, the UK suƉƉly chain also Ɖroǀided edžƉertise in Ɖrocurement, logistics, training and assurance, as ǁell as a ǀariety oĨ sƉecialist engineering suƉƉort oĨĨshore͘ thile many oĨ these contracts ǁere aǁarded in the Aďerdeen region, inũecting caƉital into the city and its surrounding areas, the suƉƉly chain ǁas inv olv e d r igh t acr oss t h e count r y . C ont r act or s fr om Inv e r ne ss t o L ondon w e r e e ngage d and t h e e x p e r ie nce gaine d Ĩrom comƉledž Ɖroũects such as this alloǁs lessons to ďe edžƉorted gloďally͘

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