Tayside and Fife projects get slice of Decommissioning Challenge Fund cash

© DC ThomsonAlex Fyfe, managing director of OilMac
Alex Fyfe, managing director of OilMac

The installation of the UK’s largest onshore heavy lift crane at the Port of Dundee has been given the backing of the Scottish Government’s new Decommissioning Challenge Fund (DCF).

The project – and two others at Montrose and Methil – are to receive a share of the £1.1 million funding pot.

A total of seven projects have received cash from the first round of funding and a further six schemes are being considered for a share of a £1.4m secondary pot.

Alex Fyfe, managing director at Oilfield Machinery (OilMac) said the DCF was a key element in funding the installation of a new heavy lift crane at Prince Charles Wharf at the Port of Dundee.

The quayside itself is currently the subject of a £10 million upgrading funded by docks owner Forth Ports in anticipation of the city becoming a major hub for the decommissioning sector.

“The support we’ve received from Scottish Government has been instrumental in supporting our operations in Dundee, so far,” Mr Fyfe said.

“With this investment, this part of OilMac’s strategy has come to fruition at a time when we can optimise the opportunities for attracting business to Scotland.

“We anticipate future projects will begin at the start of 2018 with the creation of around four direct new positions. This is an exciting time for OilMac, and the city of Dundee.”

Nigel Lees, senior vice president of decommissioning at Wood and chairman of Decom North Sea – which is currently hosting a major industry conference at Fairmont St Andrews in Fife – said: “The funding agreed by the DCF in this first round makes an important contribution to Scotland’s growing onshore decommissioning capability.

“These grants support Scotland’s ports and harbours to build on their existing assets and prepare for increasing demand, complementing growing decommissioning capability across the UK.”

Economy Secretary Keith Brown.

Economy Secretary Keith Brown said: “Companies across the supply chain are actively engaged in decommissioning projects, with Scottish based firms having secured more than half of the value of contracts awarded.

“Our Decommissioning Challenge Fund is a clear signal to the market to think seriously about decommissioning – a market forecasted to be worth £17 billion by 2025 – and to plan and invest accordingly.

“In spite of the competition, Scotland has distinct advantages and assets that make it an attractive offer – and we are doing everything possible to stimulate investment and ensure our oil and gas sector remains competitive and attractive for decades to come.”