The UK Offshore Oil and Gas Fabricators Directory 2014

Foreword from the Rt Hon Michael Fallon MP

O ne of the key aims of the recently published Oil and Gas Industrial Strategy is tomaximise opportunities and investment in the new developments coming forward for the benefit of thewhole UK economy. Wewant to promote and support a dynamic and competitive supply chainwhich sustains high quality jobs in the UK. This booklet showcases the capability and capacity of our important UK fabrication supply chain. It highlights an impressive proficiency within this sector, and onewhich is alsomirrored in our indigenous expertise in front end engineering and design. We havewitnessed a renaissance in the fabrication sector over the past three years with UK yards winning significant contracts and demonstrating their capability and competitive edge in building iconic UK Continental Shelf (UKCS) platforms oncemore. Recent successful projects: • The Apache Forties platformcompleted at OGN yard in Tyneside in 2013 Looking forward to 2014: • Premier Oil’s Solan project where the topsides and jackets are currently under construction in the BiFab yard in Fife • GDF’s Cygnus project where the jackets and topsides are currently being built between Heerema in Hartlepool and BiFab in Fife UK yards are also busy fabricating newUKCS infrastructure forMontrose and Golden Eagle, andwewant tomaintain this level of activity. The number of developments and the capital expenditure expected over the next five years ismore thanwe have ever seen in this basin. It is therefore important that we continue to build the strength and competitiveness of this sector and that British operators recognise the benefits of workingwith businesses and afford thema fair and open opportunity towork on their projects.

The oil and gas industry is a huge sector both for security of energy supply and also for the prosperity and jobs it supports across our national and regional economies. The Department of Energy and Climate Change (DECC) works to provide key industry intelligence information to the supply chain, including visibility of all upcoming developments through Project Pathfinder. Pathfinder is tracking around 60 current UKCS projects, as well as an increasing number of brownfield and incremental developments coming forward as a result of recent fiscal changes. 2013 was an outstanding year for the North Sea with a total of 34 new and incremental projects approved by DECC with associated capital expenditure of £9.4 billion in new investment. 2014 looks to be just as strong. We must harness this prosperity for UK business and use it to promote continuity of projects which will sustain a level of competence within this important sector. In doing so, this will create and support a large number of skilled jobs, many of which are in economically challenged parts of the country. Where there is UK capability and capacity for fabrication it is important these companies are afforded a fair opportunity to bid for thework, sowe can build upon the skills and expertisewe have developed in this sector, and have been able to export globally. I assure youwewill be pursuing policies to ensurewe extract asmuch of our own oil and gas as we possibly can, and at the request of the Secretary of State, Sir IanWood is currently leading an in-depth reviewwith recommendations tomaximise economic recovery of our indigenous resource from the UKCS.

Rt HonMichael FallonMP, Minister of State for Energy andMinister for Business and Enterprise

page 4

THE UK OFFSHORE OIL AND GAS FABRICATORS DIRECTORY 2014