UK’s underwater engineering project

There’s been another shot in the arm for the UK’s O&G sector this month, when a multimillion pound plan to develop an underwater engineering centre in Aberdeen received backing from the UK government.

Hoping that the centre propels the UK to the top of the ‘blue economy’, companies are now being invited to submit business cases for the centre, which will ‘reinforce the UK’s status as a global leader in the field”. Ministers say that the project will build on expertise in subsea robotics, remotely-operated underwater vehicles and maritime support vessels.

It’s also an opportunity to develop the ‘blue economy’ and help the UK move towards increasing the volume of green energy. Domestically, the industry supports 45,000 jobs and 1,000 companies, of which around 60% are based in Scotland. Globally, the UK has a 40% share of the underwater engineering market, which is thought could be worth in excess of $100bn within the next 15 years.

Announcing the move, the Prime Minister Theresa May said: “It would help established businesses thrive and create new opportunities as the world makes the shift towards clean growth. Supporting industry, helping us in the fight against climate change and creating new skilled jobs and opportunities for people to get on.”

Scottish Secretary David Mundell added: “Scotland is an exceptional place to do business and its engineering opportunities are world leading. The UK Government supports Scottish industry and that is why we are backing the underwater engineering hub in Aberdeen.

“The UK Government has shown time and again its commitment to the city’s oil and gas sector and now we are investing in the blue economy to ensure the region continues to prosper with jobs, investment and innovation.”

Building on the existing synergy between the oil and gas industry and renewable supply chains, the new hub will form part of a continued package of support from the UK government to help the UK’s oil and gas sector diversify.

This includes the establishment of the Oil and Gas Authority as an independent regulator for the UK Continental Shelf, £90 million towards the creation of the Oil and Gas Technology Centre in Aberdeen and £45 million for seismic surveys in under developed areas of the UK Continental Shelf.

The UK’s oil and gas industry supports around 280,000 jobs, meets almost half of our energy needs and has contributed £334 billion in taxes towards our vital public services.

In March, the UK government also launched the offshore wind sector deal, an agreement with industry which aims to deliver a third of the UK’s electricity through offshore wind and seize on export opportunities that could be worth up to £2.6 billion by 2030.