Scotland’s First Minister has praised a Dundee firm after it secured a breakthrough contract in the Chinese oil and gas market.
Claverhouse-based SafeHouse Habitats has signed a £150,000 contract with state-owned oil and gas firm CNOOC for the supply of its patented safe working environment technology.
The deal was struck as First Minister Alex Salmond was in Beijing leading a delegation of Scottish companies.
The First Minister’s itinerary included high-level trade talks with senior management from CNOOC and Sinopec, two of the world’s largest oil and gas firms.
“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,” Mr Salmond said.
“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.”
Safehouse managing director Mike Garty said he was delighted with the new contract win.
“It is a landmark. You need the first contract to expose the product and get the concept accepted into safe operating procedures,” Mr Garty said.
“In all our other markets, the gap between us going there and breaking through could be measured in months or a year.
“But it has taken us longer in China as you need to form relationships and reach a level of trust which only comes through time and engagement.”
Mr Garty said the new agreement was the culmination of almost three years of hard work in the region and said he hoped it would provide a platform for Safehouse to grow in the country.
“We operate through a Chinese company, the Wood Group of China called Jutal, who act as our partners to deliver these services to CNOOC,” Mr Garty said.
“We want to replicate our business model here in Europe, which involves both offshore platforms and onshore work in petrochemical plants, and we see ourselves developing an onshore business with PetroChina and Sinopec.”
Ian Ross, general manager of SafeHouse 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.”
SafeHouse was founded in 2001 and now employs around 90 staff at its new purpose-built Dundee headquarters.