1 December, 2008

LERWICK's role in the emerging decommissioning industry is to be heightened further today (Monday) and tomorrow when around 30 members of an industry steering group arrive to discuss the way forward for the sector.

Decommission oil rigs could be worth £19 billion to the national economy, the UK government's department for trade and industry has estimated.

Shetland is well placed to receive some of that massive work load, and last year already saw the arrival of the Total TCP2 module support frame as part of the multi-million pound decommissioning contract awarded to local firm Peterson SBS and Veolia Environmental Services, from the Midlands.

Hosted by Highlands and Islands Enterprise (HIE), the meeting will advise and guide on areas inhibiting the UK decommissioning industry and help shape its future.

Katrina Wiseman, of HIE's Lerwick office, said the arrival of this new sector within the oil industry offered some exciting prospects for the isles.

"There are a number of companies that can benefit from work in this relatively new industry, as well as an opportunity for new businesses to locate to the islands. The decommissioning industry can provide work and employment at a time when traditional industries and the oil industry are facing decline.

"Peterson SBS operates a key sector with high growth potential and global investment opportunities, and it is keen to grow its business in Shetland, bringing significant benefits to the local economy," she said.

Peterson SBS already employs 70 people locally, many of which were involved in dismantling and disposing off the huge 8,800 tonnes module support frame which was heaved ashore in September last year.

Murdo MacIver, a director of Peterson SBS and chairman of the Shetland Decommissioning Consortium said his company was gearing up to meet the challenges of removing and "deconstructing" oil industry facilities.

"Around 40 per cent of the 500 existing offshore North Sea oil and gas installations will be considered for decommissioning in the next 20 or 30 years which presents a fantastic opportunity for us and our partners," he said.

Members of the steering group will arrive in the isles on Monday and will tour the decommission site at Lerwick’s Greenhead Base on Tuesday morning before their meeting at the Shetland Museum and Archives later the same day.