Scottish oil & gas companies target lucrative Australian market

Eight Scottish oil and gas companies are collectively targeting £12.3million worth of new business in the fast-growing Australian market over the next three years.

Commenting on the new figures, Mr Ewing said:

“It is fantastic and encouraging news to hear that Scottish companies are continuing to work together on an international scale in cementing Scotland’s global reputation within the oil and gas sector.

“International sales by Scotland’s oil and gas supply chain rose by 8.4 per cent in 2011-12, to £8.2 billion – almost double the growth from the previous year. This reaffirms the value of international activity to the economy and exchequer is significant.

“Scotland is leading the way in the world of oil and gas and has a clear competitive advantage in this truly global industry. There are huge opportunities open to us in Australia and we are determined to make the most of them.

“The Scottish Government recognises the substantial contribution that the oil and gas industry makes to our economy. We are working with the industry to continue to strengthen Scotland’s position as a global leader in the sector and these figures mark further growth in this important part of our economy.”

Already many Scottish companies have bases in Western Australia (WA) in particular, or are considering exporting their expertise or services there following a series of overseas missions organised by Scottish Enterprise’s international development arm, Scottish Development International (SDI). The eight companies which have highlighted the £12.3m potential were part of a delegation of 25 companies which took part in a SE & SDI trade mission to Australia in January.

Lena Wilson, Chief Executive of Scottish Enterprise who led the mission earlier this year said:

“The Australian oil & gas industry is expected to spend up to £15.4 billion on new projects in the next five years alone, providing significant opportunities for Scottish companies to share their knowledge and innovation with operators.

“This market requires the technology and expertise that has been developed and proven in the North Sea. Our experience and track record in offshore and subsea operations means our companies are ideally placed to take advantage of these opportunities.”

QEM Solutions made its third visit to Australia with Scottish Enterprise in January, and recently opened an office in Perth, WA, after 18 months of research into market opportunities. Company director and engineer Rob Graham says they wouldn’t have been able to approach the market so realistically without support from Scottish Enterprise.

He said: “Australia is a huge market so it made a big difference to have access to contacts and advice on things like taxation and employment laws before making our decision. It’s taken us 10 years to generate a £1.5m annual turnover in the UK, but we believe we can equal that in six months in Australia.”

Australia is also a key emerging market for WFS Technologies who were also part of the mission to Australia earlier this year. Marketing manager Amanda Collins says that in particular WFS found attending the Australian Oil & Gas event in Perth a great opportunity to meet key industry players and find out more about the local territory.

“Australia is starting to appreciate the value of subsea wireless and how it can support safety, reliability and efficiency offshore. Up until now, our Seatooth® wireless instrumentation has been deployed in the North Sea, Gulf of Mexico and SE Asia, however we are now seeing interest from the whole Asia Pacific region in subsea wireless for subsea applications.”

In addition the Mayor of Perth, Lisa Scaffidi and nine Western Australian companies from the region are attending Offshore Europe this week.

The will be joined by Peter Carew, Chief Executive Northern Territory Government with a delegation of 5 companies.