Government agency Scottish Enterprise has revealed a new Subsea Engineering Action Plan with the aim of capturing an even bigger slice of the current £50 billion global subsea market.
The news was announced as Scottish Government Minister for Business, Innovation and Energy, Paul Wheelhouse, visited oil and gas firm, Enpro Subsea, as it announced £1.5 million investment to support innovation.
Scotland already accounts for around 14% of the global subsea market, comprising approximately 370 companies generating an estimated turnover of £7.5 billion, says Scottish Enterprise.
Supported predominantly by the oil and gas sector, the sector has the potential to extend into sectors such as construction and defense, the body says.
Increasing business innovation, research and testing infrastructure will also be a key part of the plan and will see Scotland’s economic development agencies continue to support high levels of subsea related investment.
Enpro Subsea is investing £1.5million in a new research and development project aimed at helping to improve production, by maximizing economic recovery from existing subsea wells and in turn reduce costs for the operating companies.
Scottish Enterprise’s offer of a £755,000 research and development grant towards the project costs will help the company design, develop and test new technology adding to its Enhanced Subsea Sampling and Injection (ESSI) range of products. This is the first time the company has been supported by Scottish Enterprise.
David Rennie, international sector head for oil and gas at Scottish Enterprise said: “With 2000 of the 5000 global subsea wells in the North Sea, Scotland is world-renowned for its skills and expertise in subsea engineering. Many technologies developed in Scotland have revolutionized the worldwide oil and gas industry. It is this experience and reputation which is the basis for this action plan – we want to build and maintain what we already have, develop new markets and new opportunities, including in other sectors and ensure we have the infrastructure we need to remain a world leader in subsea."
Enpro's managing director Ian Donald said: “This assistance from Scottish Enterprise will enable Enpro to develop the next generation of subsea enhanced production intervention equipment to increase oil recovery and address emerging markets in deeper waters.”
Neil Gordon, chief executive of industry body Subsea UK, said: “We welcome this action plan which sets out the ambition and the key steps to achieving success through greater focus and resource targeted towards supporting our underwater engineering capability. A stronger supply chain will generate jobs, opportunities and wealth for Scotland as well as securing our world-leading position in subsea.”
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