The international reputation of Scotland’s oil and gas supply chain still remains strong despite the challenges of the global downturn, a benchmark report said on Thursday.
Scottish Enterprise’s annual Survey of International Activity in the Oil and Gas sector showed that international activity from Scotland’s oil and gas supply chain continued to account for just over half of its total sales during 2015/16 (50.9%), demonstrating the continued strong demand across the globe for Scotland’s skills, experience and expertise.
The report showed that the sector delivered £11.4 billion of international sales, made up of £4.1 billion of direct exports and £7.3 billion of sales via international subsidiaries during the surveyed period.
The research also reported an increase from 115 to 130 in the number of countries Scotland trades with and sales to non-oil and gas markets have increased to £0.8 billion, over four times the figure in 2012, suggesting an increase in diversification focus from the sector.
Head of oil and gas at Scottish Enterprise, David Rennie, said: “As we look to grow Scotland’s oil and gas sector, supporting international activity remains a key focus for us.
“Despite seeing a 7% decline in our overall international activity, a casualty of the global downturn, international activity still accounts for more than half of total supply chain sales.
“We’re also seeing increased interest in a number of overseas markets in recent years such as the Middle East.”
Scottish Government Minister for Business, Innovation and Energy, Paul Wheelhouse, added: “This latest international activity report, shows that despite the on-going challenges that the sector has been facing throughout the oil and gas industry, the Scottish supply chain is maintaining its strength with around half of the supply chain sales based internationally.
“This report, and recent industry announcements around domestic production, such as Centrica’s announcement to invest £35 million at the Chestnut field, extending the life of the field and trebling production, and the starting of production from BP’s Quad 204 field present welcome evidence of returning confidence and optimism to the sector, albeit we remain vigilant given this is still at an early stage.
“With up to 20 billion barrels of oil equivalent estimated to remain in the North Sea basin, Scotland’s oil and gas industry has a bright future for decades to come.”
