FM leads high-level oil and gas talks in China

First Minister Alex Salmond will outline Scotland’s “outstanding pedigree” in the oil and gas sector to senior-level Chinese businesses at a series of engagements with a group of Scottish firms that form part of the Scottish Government’s trade mission to China.

While in Beijing the First Minister will meet with senior management at CNOOC and Sinopec - two of the world’s largest oil and gas companies - as efforts continue to sell Scotland’s innovation and expertise in the industry to China – the largest consumer of energy and second largest consumer of oil in the world.

Both firms have already invested heavily in the North Sea oil and gas industry and the First Minister today welcomed a new deal that will see CNOOC employ further Scottish expertise by entering into a new £150,000 contract with Dundee-based SafeHouse Habitats to provide its patented safe working environment technology.

The First Minister said:

“As the world’s most populous country and one of its fastest-growing economies, China is exploring new domestic energy supplies and investing heavily in the industry through mergers and acquisitions overseas. As part of this strategy, skilled engineers and advanced technology have been identified as a priority and Scotland is in prime position to capitalise on this demand by demonstrating our outstanding pedigree and expertise developed over 40 years in the North Sea.

“Scotland’s enviable reputation as the European capital of oil and gas, and our ongoing pioneering work in exploration and extraction, gives us a strong appeal to Chinese firms looking for both domestic and international future energy supplies.

“In the past few years we’ve seen increased investment from China into the industry in Scotland, with CNOOC’s acquisition of Nexen, and Sinopec’s interest in Talisman’s North Sea business. And this week, I’m introducing some of our most innovative companies to the senior leadership of these energy giants, to help them do more business in this market.

“This approach is clearly paying off, with the very welcome announcement today that Dundee-based SafeHouse Habitats has secured a £150,000 contract with CNOOC to provide its expert safe working environment services in the Chinese market.”

Ian Ross, General Manager of Safe House Habitats China said:

“Today’s contract signing is a very exciting development for the company and demonstrates CNOOC’s commitment to rig safety both in China and elsewhere around the world. We look forward to working with CNOOC and their partners in delivering our SafeHouse Habitat quality assured product and service”.

The oil and gas mission, organised by Scottish Enterprise’s international arm Scottish Development International, showcases a pedigree of excellence in exploration and production, technology development, health and safety and contingency solutions planning, to the elite of China’s oil and gas industry.

As well as encouraging further investment into Scotland and helping Scottish firms to export skills and expertise, the meetings and workshops will also provide the delegation with opportunities to promote partnership with China in markets beyond Europe.

Julian Taylor, Director Asia Pacific, Scottish Development International said:

“China is a priority market for Scottish oil and gas companies and we have identified many opportunities for developing new international partnerships in areas where Scotland has a strong heritage and can support the Chinese oil and gas industry in its global development, such as supply chain development, health & safety and training.

“China already owns 20 per cent of the world’s oil and gas operations and continues to look for opportunities in Africa and South America. Given Scotland’s growing experience of success in these markets, there are clear opportunities to benefit from this investment-ready environment by partnering with China’s oil companies.”