Influx of Norwegian firms could bring 500 new jobs

May 15 2008 by Peter McCusker, The Journal

AN influx of Norwegian companies to the North East on the back of the global oil and gas boom could create up to 500 new highly-skilled jobs in the region in the next three years.

Norwegian logistics experts J Martens UK has just opened a base in Cramlington, Northumberland, and an announcement on a further two companies coming to the region is expected within weeks.

There are now more than 20 Norwegian companies in the North East and the figure is set to grow in the next few years, creating hundreds of skilled jobs. With full employment in Norway and Aberdeen, the global oil and gas boom means Norwegian energy companies are increasingly turning their sights to the North East.

They are desperate to recruit skilled staff and to tap into the expertise of the region’s 50-plus companies with links to the offshore sector.

Magne Eide, marketing director of J Martens UK, said: “We think the North East will become more and more important for us, as many Norwegian companies plan to establish themselves in the area. Newcastle is quite a nice point for us and for many of the other Norwegian companies. It is a central point for trade across the UK and there is a deep pool of skilled labour.”

Earlier this week Eastern Airways launched a daily service from Newcastle to Stavanger, the Norwegian town at the centre of the country’s oil sector.

A party from regional development agency One NorthEast was one of the first to use the service in a bid to encourage further trade ties. Patrick Kendell, inward investment manager at ONE, said: “The North East and Norway have very similar business cultures, with mature supply chains and technologically advanced markets in the oil and gas sectors.

“Norway has a prosperous oil and gas future ahead, with exploration still at a high and many projects coming on stream providing opportunities in the supply chain for businesses in the North East.”

He believes the lack of skilled staff is hindering Norwegian growth plans.

“This is a real opportunity for the North East. Norwegian companies are looking to set up in the region.

“This could help create between 250 and 500 jobs in the next three to four years. These jobs will be across the board, from engineers to IT support and they are all highly-skilled jobs.”

Earlier this year a delegation of 40 Norwegian companies arrived in the region for the first time in decades to seek new business opportunities with North East companies.

Mike Pederson, of the Norwegian Collaboration Centre, has been working on attracting Norwegian companies to the region with Seadrill Engineering – who brought 60 jobs to Blyth last year – being one of its major successes. He said he expected to announce the arrival of a further two Norwegian companies in the region in the next few weeks.

Boom in region

SOARING oil prices and a voracious global demand for energy is helping fuel a new North East oil boom which is expected to create thousands of jobs and bring millions of pounds into the regional economy.

George Rafferty, chief executive of NOF Energy, said: “This is a new dawn for the oil industry in the North East. We are witnessing a boom and the region is playing a major part in this global boom. North East firms and experts have been involved in all major global explorations, bar China, in recent years.

“We are a world-leading centre for subsea exploration and with demand set to remain high, we expect to see a doubling in the number of jobs in the region to around 10,000.”

Most global oil exploration is now concentrated on underwater reserves. The revenues generated by the North East’s subsea sector since 2004 are: £141m (2004), £232m (2005) and £298m (2006).