Group News: October 2016
The North East of Scotland is very much open for business.
The Secretary of State for Scotland The Rt Hon David Mundell, recently met with key industry figures in Houston and Dallas in the USA. The cities’ economies remain strong despite the challenges of a low international oil price. Mr Mundell met with senior figures from a number of key businesses, including Maersk, BP and the Weir Group. Mr Mundell pressed the case for investing in Scotland, and to find paths for Scottish companies to export their expertise in the industry.
The UK Government has taken unprecedented action to support Aberdeen and the North East following the fall in the oil price. That included a package of tax measures and a City Deal for Aberdeen and Aberdeenshire. “ It’s only because of the broad shoulders of the wider UK economy that we are able to provide this financial support to our oil and gas industry, and to the thousands of workers and families it supports, at this very difficult time.” .. commented Mr Mundell.
Mr Mundell added ... “The UK Government has an extensive network of influence overseas, not just in America but around the world. This is a tremendous asset and I am determined that Scotland should get the full benefit of Britain’s embassies and high commissions, as they bang the drum for the oil and gas industry on the global stage. That is one of the ways we can help build a bridge to the future for Aberdeen and the North East.
A key part of the UK Government’s strategy to support the UK’s oil and gas sector is to support diversification into overseas markets, and to encourage further investment into North Sea oil and gas - the North East of Scotland is very much still open for business.”
The UK Government’s support for the oil and gas sector includes a significant package of tax measures, worth £2.3 billion, to ensure the UK remains an attractive destination for investment. To support Aberdeen directly the UK Government has agreed with the Scottish Government and local authorities a £250 million City Deal for Aberdeen and Aberdeenshire.
Adapted from press release / Scotland Office.
Looking on the bright side!
With international oil prices still hovering around $50 a barrel and curbing the enthusiasm for exploration and drilling, all companies have inevitably reduced overall capital spend on new equipment. However, for operational rigs it is becoming obvious that this freeze cannot go on forever as key safety critical systems and equipment is depreciating, becoming outdated or wearing and failing.
Monitor Systems is finding an increasing flow of work from production platforms and drilling contractors rigs focussing on vital equipment refurbishments and upgrades. Our 20 years of proven track record delivering a wide range of drilling and marine E & I systems costs effectively has meant that the large Oil Companies are now accepting of smaller businesses that can deliver reliable, compliant and to the same high level of standards timely and safely as the much larger competitive global players.
This year, Monitor Systems has designed, built, delivered and installed a number of vessel anchor winch systems ranging from leading edge chain & wire-rope 12 Point anchor winch monitoring systems using Siemens technology down to simpler wire-rope 4 point running line tensiometer systems , a couple of bulk tank systems, a number of BOP Control Panels, the first two of several Deckload & Stability Software packages and Gas in Mud Detections systems which has led to the supply of specialised components such as Gas in Mud Float Traps for others systems, BOP Temperature probes, and other major E&I system enhancements.
The level of inquiries is still there but the conversion rate from inquiry to order is either taking longer to convert or the total opposite, that is an urgent fast-track turnaround project …… which means that “Quotations and tender bids have had to be right on the ball” says managing director Brian Sinclair. “Over the years we have built a reputation for cost effective, fit for purpose, high quality, leading edge products with a particular emphasis on ensuring our customers feel their projects are in safe hands”. He adds, “We like to ensure our customers feel valued and important. It would appear this long term held philosophy is appreciated”.
Monitor Systems is seeing the same market conditions driving an increase in demand for equipment and systems specific to the warm and cold stacking of rigs, vessels and platforms as well as for protecting ongoing decommissioning operations. High quality, totally reliable systems designed and installed for remote monitoring and alerting fire risk, flooding in submerged bilges and power failure is proving vitally important for ensuring the safety and integrity of unmanned stacked assets.
Despite the low oil price, it appears that some players in the industry are taking the positive view and using the time wisely to strengthen and bolster working assets for the future. “We have to be ready and able when things start to improve – let’s hope that’s not too far ahead.
Stop Press – Monitor Systems have just been awarded full E & I control and monitoring system for a sizeable Tank Farm project.