Oil and gas

The oil industry has played a vital role in Shetland’s economy for the past 40 years and there are still plenty of investment opportunities to be had in this crucial sector.

On Shetland’s doorstep are abundant oil and gas reserves – and although the oil and gas fields east of Shetland are mature, the surge of activity on the Atlantic Frontier West of Shetland has seen a long-overdue boost and a desire to invest in what could be a 30-year opportunity.

For the Atlantic Frontier, geography plays an increasingly important role and Shetland, with its prime location, facilities and supply chain, is coming to the fore. For UK growth, the West of Shetland is the “place to be”, according to a 2018 report by global energy consultants Wood Mackenzie.

Many firms in Shetland have been involved in the oil and gas sector for over 40 years. This means Shetland is well equipped and ready to work with the growing number of operators in the region to drive out new competitive approaches, thereby maximising economic recovery of assets.

Operators and tier one contractors who want to find out more about what Shetland can offer should contact Katrina Wiseman, Head of Business Growth at Highland and Islands Enterprise to find out more. Email katrina.wiseman@hient.co.uk or call +44 (0)1595 744 909.

The majority of UK oil reserves for BP, Shell and Chevron are located West of Shetland, and four projects in the province will drive UK production growth through the 2020s – Clair Ridge, Clair South, Cambo and Rosebank. The West of Shetland is also under explored, with less than 160 exploration wells drilled in the region to date. Other UK regions have had more than 500 wells drilled.

Decommissioning in Lerwick

As Shetland is only 120 miles from North Sea oil and gas fields it means that Lerwick Harbour is strategically positioned for its key role in decommissioning a range of facilities.

As one of the first ports in the UK to handle major offshore industry decommissioning projects, Lerwick’s proximity to oil and gas activities in the northern North Sea and Atlantic, complemented by its deep-water capabilities, mean the harbour is ideally positioned to meet the needs of the industry in the recycling and disposal of large structures. Lerwick’s Dales Voe site was chosen after a UK-wide feasibility study by Ernst and Young as the most cost-effective location for decommissioning.

Lerwick is at the forefront of decommissioning in north-west Europe. Not only does it have a track record of working with the offshore industry, it recently increased deep-water access and berthing within the port. It also has modern infrastructure and potential for ongoing development.

To find out more, contact Katrina Wiseman – email katrina.wiseman@hient.co.uk or call +44 (0)1595 744 909.

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