Championing the expertise of 30 years’ experience

Jan 15 2008 By The Journal

A BURGEONING subsea sector is underpinning the success of companies in the North East. The global demand for oil and gas and its by-products has created a significant uplift in activity and investment in this arena. The sector makes a substantial contribution to the region’s economy with more than 50 companies, with a combined turnover approaching £1bn and employing more than 5,000 people, operating in design, manufacturing and services.

Championing their cause is Subsea North East which was formed by leading companies in the sector to promote the expertise gained from more than 30 years of providing the subsea facilities required to extract oil and gas in the North Sea and around the world.

Members of Subsea North East, which is affiliated with NOF Energy, the Washington-based business development organisation for the oil, gas and related energy sector and Subsea UK, the national industry body, are notching up notable successes.

Business at Penspen, which has a Newcastle office, and other engineering consultancy companies in the region is growing as offshore operators need to extend the life of their assets.

Recent projects include the development of inspection and maintenance plans for subsea facilities associated with the 20-year-old Balmoral field in the North Sea and an audit of the condition of subsea structures and pipelines in the Magellanes field offshore Argentina.

Umbilical systems manufacturer, DUCO, has also been prospering across the globe with two projects in particular marked by world records.

DUCO, which was the 2006-2007 NOF Energy Company of the Year, recently manufactured the longest ever plastic-based umbilical for Petro SA in South Africa measuring 53km.

The company achieved another record when it completed the heaviest umbilical per-metre for a BP West of Shetland project in Scotland, which weighed 0.3 tonnes per metre.

Both achievements are a direct result of the significant technological expertise within the DUCO business and the North-East region.

DUCO is also finalising expansion plans that will be implemented globally and in the North East at its base in Walker, Newcastle.

Northumberland-based The Engineering Business has won two important contracts to supply new pipeline trenching systems. The offshore, marine and renewable industry engineering specialist’s expanding workload led to it being named the fastest growing company in the North-East for 2007 in the Ward Hadaway Fastest 50 Awards.

Perry Slingsby Systems has secured orders for more than 30 Remote Operated Vehicles, which will be built, tested and shipped from its main UK manufacturing plant at Kirbymoorside, North Yorkshire, during the next two years.

Chris Braithwaite, chief operating officer of Newcastle-based Wellstream International, the current holder of the North East Company of the Year title, is chairman of Subsea North East.

His company, a leading designer and manufacturer of flexible pipeline products and systems, experienced a record performance in the first half of 2007 and has opened a new manufacturing facility in Brazil.

Mr Braithwaite said: “The North-East of England now enjoys a significant presence in the subsea sector. The market in this area is very robust due to the strong trend towards offshore deepwater developments and the increasing use of floating production and subsea completion technologies.”