supporting scotland's oil & gas supply chain companies

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Supporting Scotland’s Oil & Gas Industry www.scottish-enterprise.com/oilandgas

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Page 1: Supporting Scotland's oil & gas supply chain companies

Supporting Scotland’s Oil & Gas Industry

www.scottish-enterprise.com/oilandgas

Page 2: Supporting Scotland's oil & gas supply chain companies

Supporting Scotland’s Oil & Gas Industry 3

INTRODUCTION

2 Supporting Scotland’s Oil & Gas Industry

CONTENTS

Welcome Note from David Rennie Over the past 50 years the Oil & Gas industry in Scotland has built up the experience and expertise needed to thrive in the demanding environment of the North Sea. That’s why Scotland is seen as a global hub for the industry - in a recent survey carried out by Scottish Enterprise, 78% of senior industry figures recognised the important role Scotland plays internationally.

That global reputation has helped Scotland’s 2000 supply chain companies expand into markets across the world, with activity reported in over 130 countries and record international sales recorded in 2013.

However we also know that the industry in Scotland must adapt to meet current challenges and Scottish Enterprise has a crucial role to play in supporting our supply chain companies.

Already we work with over 350 Oil and Gas companies to help them realise their long term ambitions for growth and we’re keen to connect with even more of our supply chain companies to help them remain competitive at home and abroad.

With global sales of £11.2 billion we know that Scottish expertise remains in high demand overseas. From helping Scottish companies make contacts in new markets to one-to-one support from our team of export advisers and our influential GlobalScot network, we’ve got a range of services that can help more Scottish-based companies meet their specific export challenges and enjoy success in new markets.

Innovation has been at the heart of the remarkable success our oil and gas industry has enjoyed over the decades.

We know that if it wasn’t for innovators and risk takers Scotland wouldn’t have an oil and gas industry and we can

help today’s supply chain companies develop the products and services needed by the global industry.

From grants to support R&D work to expert support through all stages of the development process to help and advice on marketing new products, we can help Scotland’s supply chain develop new technologies and take them to the global market place.

At a time of major challenges, we recognise the importance of increasing efficiency in the sector with support available from our Scottish Manufacturing Advisory Service and a range of services to help develop management teams and improve business practices.

Through the Industry Leadership Group, the Energy Jobs Taskforce and the Oil and Gas Authority, we’re active in supporting initiatives to safeguard jobs, retain talent and developing new skills for a changing industry.

By working with the industry and by connecting with more of Scotland’s supply chain companies, Scottish Enterprise is committed to supporting the development of a stronger, more international, more innovative and more efficient supply chain in Aberdeen and across the country.

SCOTLAND’S OIL AND GAS SUPPLY CHAIN COMPANIES HAVE A BRIGHT FUTURE

CONTENT

INTRODUCTION 3

INNOVATION 5

INTERNATIONALISATION 27

MANUFACTURING 41

OUR NETWORKS 47

David Rennie International Sector Head Oil & Gas Scottish Enterprise

Page 3: Supporting Scotland's oil & gas supply chain companies

INNOVATIONif it wasn’t for

the innovators and the risk takers

Scotland wouldn’t have an Oil & Gas

Industry

INNOVATION SUPPORT FOR SCOTLAND’S O&G SUPPLY CHAIN.

Page 4: Supporting Scotland's oil & gas supply chain companies

IF SCOTLAND’S OIL & GAS SECTOR IS TO FLOURISH IT NEEDS TO BUILD ON ITS HERITAGE OF AMBITION AND INDUSTRIAL INNOVATION.

DEBUNKING MYTHS ABOUT INNOVATION THAT MIGHT BE HOLDING YOUR BUSINESS BACK

INNOVATION IS ALL ABOUT REVOLUTIONARY INVENTIONS

Fact: Innovation can be world-changing, but it doesn’t have to be.

It’s about changes, big and small, that improve and sustain competitiveness.

Innovation might not be a new idea, just new to you.

INNOVATION IS TOO RISKY

Fact: Embracing innovation leads to growth through increased turnover and greater opportunities helping you stay ahead of your competition.

Innovation turns threats into opportunity and not doing it is more risky.

INNOVATION IS ONLY FOR SCIENCE AND TECHNOLOGY COMPANIES

Fact: Any business can innovate.

And innovation is in all areas of business from updating your products to changing your processes, business models, or finding new routes to market.

I DON’T HAVE ENOUGH TIME, MONEY OR KNOW-HOW TO INNOVATE

Fact: You don’t need big budgets or resources to innovate.

Everyone can have innovative ideas and Scottish Enterprise can help develop them into strategy.

SCOTTISH BUSINESSES CAN’T INNOVATE LIKE THOSE FROM BIGGER ECONOMIES

Fact: Ranking of the world’s most innovative countries include smaller ones such as Finland, Israel, Singapore and the Scandinavian nations.

Scotland is full of new ideas; let Scottish Enterprise help turn them into commercial success.

FAILURE IS NOT AN OPTION

Fact: Testing and learning are huge parts of innovation.

It may take a few goes to get it right, but this process gives you a higher chance of success.

And doing nothing gives you a higher chance of failure.

I NEED TO PATENT MY IDEA IMMEDIATELY OR IT WILL BE STOLEN

Fact: Patenting is costly and not always the most effective strategy.

However, there are a variety of options to protect your ideas. Scottish Enterprise can help safeguard your innovation.

I CAN GROW MY BUSINESS SUCCESSFULLY WITHOUT INNOVATION

Fact: Businesses that continually innovate grow twice as fast as those that don’t.

Without innovation it is hard to compete and you will eventually be overtaken by more proactive businesses.

I’M NOT CREATIVE SO I CAN’T BE INNOVATIVE

Fact: There are tools and techniques to encourage ideas that address a problem or opportunity. Innovation is about how you exploit the ideas to create success.

Left alone creativity will never become anything.

Page 5: Supporting Scotland's oil & gas supply chain companies

WE MEAN BUSINESSScottish Enterprise can help you and your company by providing help and advice in many areas of innovation, from developing an innovation strategy through to practical support. And where we don’t have the in-house expertise, we can often support the cost of an expert or consultant to work with a company.

Whether your company is in the early days of exploring an idea through market research, finding the right business model and on to feasibility testing and product prototyping, Scottish Enterprise can offer a range of business support and assistance.

We can even help in areas such as developing your leadership team and organisational changes needed to exploit the innovation, as well as the vital design and branding aspects and, of course, the necessary intellectual asset protection of the innovation.

8 Supporting Scotland’s Oil & Gas Industry

SCOTTISH ENTERPRISE’S INNOVATION SUPPORT

LOOKING TO TOMORROWBanish all thought of white-coated ‘boffins’ gathered in a lab, today’s innovators are just as likely to wear muddy boots and hi-vis vests, work offshore or in an office. Good ideas have no boundaries. Innovation is as much about finding new ways of working as it is about inventing or improving products.

Gaining a competitive edge is essential to maintaining a position in the market and securing growth for the future. Strong businesses are those that continue to think about new – and better – ways of solving their customers’ problems.

As oil and gas markets tighten, innovation is the key that will allow Scottish companies to unlock the global opportunities in new and emerging markets.

That’s why we are looking for and can provide backing for new ideas. We want to help you build a better business. We have grants, seed funding, the academic and business links and the marketing insight to make your innovative ideas a reality.

OUTSTANDING IN OUR FIELDScotland’s oil and gas innovators set the pace when it came to working in dangerous and inhospitable conditions. They went further and deeper to help retrieve nature’s bounty.

Many of today’s industry-standard drilling, platform, well-head and safety innovations were invented, developed and first applied in the North Sea.

If Scotland’s oil and gas sector is to flourish in a diminishing domestic market, it needs to maintain and build on that heritage of ambition and industrial innovation. Rather than sitting back and waiting for the world to come knocking, we need to go global with our good ideas and expertise.

To further those ambitions, this year the Scottish Government established an Energy Jobs Taskforce. A strong partnership of industry, public sector and trade union representatives, chaired by Scottish Enterprise Chief Executive Lena Wilson, its task is to help tackle the immediate challenges facing the energy sector.

The Taskforce aims to:

• Retain and grow the talent and skills in the industry

• Identify and implement support to people who are facing redundancy

• Enhance partnership and collaboration

TRANSFORM YOUR BUSINESS THROUGH INNOVATIONInnovation is the beating heart of business. From new inventions to smarter ways of working, from big bang developments to small game-changing solutions, when the going gets tough, the tough get thinking.

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AS OIL & GAS MARKETS TIGHTEN, INNOVATION IS THE KEY TO UNLOCKING GLOBAL OPPORTUNITIES.

10 Supporting Scotland’s Oil & Gas Industry

SCOTTISH ENTERPRISE’S INNOVATION SUPPORT

HOLD ONTO YOUR DREAMSYou think you’ve got an idea for a unique new product or service. How do you make sure nobody copies it? You might want to investigate whether or not your development could be protected by a patent. Patents protect new inventions and cover how they work, what they do and how they do it. For an innovation to be patentable, it must be new, distinctive and it cannot have been made public.

You can register your unique design to make sure that nobody else can copy it – and it’s not just ‘products’ which can be protected this way: textile designs, character designs and lots of other things can be covered too.

You want to work with other companies to pitch for contracts. How do you protect confidential information? Trade secrets can be an extremely important business assets and one which you may not want to become widely known.

If you feel there is a risk that information might not be kept in confidence, then you can ask third parties to sign a confidentiality, or non-disclosure, agreement. This means that, if they disclose any of the information covered by the agreement then you can take legal action.

IT’S TIME TO TALK…Explaining or revealing your new idea or innovation is never an easy task. Don’t worry, we get that. Our Innovation Services team are quick on the uptake and ready to help in any way they can.

Perhaps you need feedback on your product idea, a sounding board for a new way of working or just someone to tell you that, yes, you’re onto something good; our team are well-used to assessing innovations and helping you see the way forward.

IT’S YOUR MOVEScottish Enterprise offers a range of specialist services to help you bring your new product or service to market.

Whatever you’ve come up with, or think you’ve come up with, don’t keep it to yourself. We want to hear about it. Your idea or innovation could be the next big thing.

www.scottish-enterprise.com/iss

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Supporting Scotland’s Oil & Gas Industry 13

Q&A WITH MICHAEL CANNON

SE-backed business link-ups, such as that already in place with Norway’s Statoil, can help ease new inventions, processes and smarter ways of working into the mainstream.

“That networking element is at the core of what we do at Open Innovation,” says Michael. “We can introduce small firms to the big players. We can also, via advice on intellectual property (IP) assets, patents, copyright, registered designs and trademarks, help protect the smaller players.

“Think of us as a dating agency for would-be collaborators. We try to find firms their perfect development or R&D partner. We put a lot of time and effort into pairing up potential partners; we’re certainly not in the business of sending firms off on potentially pointless and expensive blind dates!”

BUILDING FOR THE FUTUREAs budgets in the oil and gas industry tighten, Michael is keen to emphasise the R&D support available to firms from Scottish Enterprise.

“Firms in the Norwegian sector already spend four times as much as their Scottish counterparts on R&D,” he says; “although that doesn’t guarantee them four times our success.

“The various R&D grants SE offer are even more important now than they were in the ‘good old days’; it’s the seed capital which will help Scottish companies to survive and thrive in global markets. It’s money that will help attract and retain the smart thinkers. It’s an investment in both Scotland and our future oil and gas industry.

“Innovation has always been important but, in the past, companies could rely on the expansion of national economies and the general consumer boom in order to fuel their growth.

“This pattern has changed now and for the past number of years economic growth has slowed considerably.

“Innovation provides routes to faster growth, to allow firms to capture more of their existing market, or to enter new markets.”

HOW WE CAN HELPSE’s Open Innovation team is here to help companies in Scotland meet those challenges by supporting innovation, increasing efficiency and helping our supply chain companies find new opportunities in markets around the world.

To find out how SE’s Innovations team can help you, contact:

www.scottish-enterprise.com/iss

THINK OF US AS A DATING AGENCY FOR WOULD-BE COLLABORATORS. WE

TRY TO FIND FIRMS THEIR PERFECT DEVELOPMENT OR R&D PARTNER

12 Supporting Scotland’s Oil & Gas Industry

Q&A WITH MICHAEL CANNON

His passion to help Scottish businesses is born of personal experience. Michael, who began his working live in the aeronautical engineering sector, has seen both the upside and the downside of innovation in action. Part of a team that helped establish an aircraft maintenance, repair and overhaul (MRO) at Prestwick, he watched the centre’s business expand until it outgrew its Scottish base and had to relocate to larger premises down south.

That’s why he is keen to see Scottish firms and inward investors build upon and reap the rewards of their new ideas, new inventions and new ways of working.

Of the current uncertainty in the Scottish oil and gas sector, Michael reassures the industry: “We feel your pain, but now is not the time to cut back on research and development.

“Every problem is an opportunity in disguise. The industry must use the current situation to strengthen and redefine its working methods, looking to all sections of the business to help drive innovation and smart thinking.”

AS EASY AS ONE, TWO, THREEMichael sees three key stages in the innovation chain; creation, exploitation and capitalision.

In layman’s terms, read: invention, development and sales.

OPEN INNOVATION – THE KEY TO SUCCESS Michael Cannon, Head of Innovation Grants and Open Innovation at Scottish Enterprise, is a man on a mission; a mission to help unleash the untapped business potential in Scotland’s oil and gas industry and supply chain companies.

Historically, Michael says, Scotland has been very good at the first of these, but not so good at the second two. That’s where the advice, grants, specialist support and business leadership available to firms via Scottish Enterprise comes into play.

“Innovation in the oil and gas sector will give Scotland a competitive advantage,” says Michael. “SE can provide grants and collaboration partners to help bring new industrial innovations to market.

“It’s no use having a breakthrough product or system if you don’t have the skills, finance or backing to test it, benchmark it and sell it on to end users.

“SE offers a range of options – Seek & Solve grants, SMART: Scotland support and collaboration grants – to help Scotland’s SMEs and larger firms develop and exploit the competitive advantage of their innovative thinking.”

FINDING THE RIGHT PARTNEROften, collaboration is the key. No one company or department has the monopoly on good ideas. Sometimes, the most innovative and game-changing ideas can come out of leftfield.

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Supporting Scotland’s Oil & Gas Industry 15

OUR INNOVATION PRODUCTS – WHICH IS RIGHT FOR YOU?

SPECIALIST INNOVATION SUPPORTCurrently planning an innovation project? Maybe you’re looking to develop or improve products or services or you’re exploring ways to increase efficiency or productivity. If you are, we can help.

We’ll organise a free, impartial review of your project with experienced innovation advisers.

Once they know more about your innovation project our advisers can:

• Provide you with information to support your project

• Take you through the support we can offer and highlight the support available from our partners

• Invite you to meet with our specialist advisers

R&D GRANTSWe can offer two types of support. If you are a small or medium-sized businesses and want to improve your competitiveness by developing new, highly innovative and commercially viable products and processes to the benefit of the Scottish economy, you need a SMART: Scotland support.

We can also provide R&D grants on a discretionary basis for technical and commercial feasibility studies, and research and development projects.

COLLABORATE FOR SUCCESSCollaboration is a highly practical way to grow your business. Whether you’re looking for a collaborator in your own field, in another sector, or in research or academia, we can help you set up a partnership to suit your needs.

If you’re interested in collaborating with other business in Europe, or team at Enterprise Europe Network Scotland can help.

If you’re thinking of creating a collaborative venture with other companies in Scotland, Co-operative Development Scotland can help you establish a business consortium that suits your company and its potential partners.

SEEK & SOLVE GRANTSWorking with customers and potential customers throughout the R&D process is a great way to develop new products, processes or services.

We’re keen to encourage more collaboration between Scotland’s innovative companies and their customers. That’s why we’ve developed a special form of R&D grant called ‘Seek & Solve.’

If one of your customers, or a potential customer, has agreed to contribute towards the total resources needed to carry out an R&D project Seek & Solve could be able to help reduce your costs.

The project could aim to gather the knowledge and skills needed to develop new products and services or to introduce a significant improvement to existing ones.

A typical Seek & Solve project will last six to 36 months and our funding can cover up to 45% of your costs.

YOUR NEXT STEP…Don’t keep your good ideas to yourself, contact us to see how we can help make them a reality.

www.scottish-enterprise.com/innovation

14 Supporting Scotland’s Oil & Gas Industry

OUR INNOVATION PRODUCTS – WHICH IS RIGHT FOR YOU?

MANAGE YOUR INTELLECTUAL ASSETS Having a great idea is the easy bit. Protecting and exploiting your big idea is the next step. We help Scottish businesses to identify, manage and exploit their hidden value. Managing your intellectual property effectively can make a big difference in a wide range of situations.

How can we help?

• Are you developing new products and services? We can help you to identify the types of intellectual property that you will need to manage in order to protect your innovations and developments.

• Are you working with third parties? We can help you to manage confidentiality, contracts and ownership between everyone involved.

• Do you want to attract investment or sell the business? We can help you identify the unique assets that make your company attractive to investors and customers. We can also help you package those assets to get the best return.

• Are you seeking new revenue streams? We offer guidance and advice on licensing opportunities.

• Are you building a brand? We can help you to strengthen it and protect it against copying.

We don’t take the place of lawyers or IP professionals. We help you to identify where the value in your business lies, then we help you to develop strategies to maximise that value.

OUR INNOVATION PRODUCTS – WHICH IS RIGHT FOR YOU?Scottish Enterprise offers a whole raft of general and specialist services to help bring innovative ideas to market. From R&D grants to innovation support, marketing insights to advice on intellectual property rights; we have the contacts to help build your business.

MAKE IT TO MARKET GRANTSCan contribute between £2,000 and £5,000 towards activities that will allow your business to prepare its products or services for international markets.

Grants are available to small to medium sized businesses in Scotland (except Highlands and Islands) that are looking to develop new or adapt existing products or services for an international market.

To be eligible, you must be able to contribute at least 25% of the cost and you must be able to demonstrate the benefits of the project.

DEVELOP YOUR PRODUCTS AND SERVICES WITH

OUR SUPPORT

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Supporting Scotland’s Oil & Gas Industry 17

CASE STUDY – RAPTON OIL

Under Seek & Solve, customers provide at least 20% of total resources required for R&D projects, while SE reimburse up to 45% of vendor’s costs for the project.

Statoil Technology Invest’s Richard Erskine said:

“Statoil believes wireless telemetry has the potential to revolutionise in-well communication and we are delighted to be cooperating with Scottish Enterprise in funding this technology development.

“Hopefully, Raptor is only the first of many such funding opportunities we will cooperate on as we continue to hunt for good ideas across Scotland.”

Scottish Enterprise chief executive Lena Wilson said:

“In the last year alone we’ve helped more than £6.13 million worth of innovation projects within oil and gas supply chain companies and supported key projects such as the new Oil and Gas Innovation Centre, in Aberdeen.

“Investing in innovation in this sector is vital to its long term future and we intend to do as much as possible to stimulate that in the coming years.”

SUPPORT FOR YOUR INNOVATION PROJECT Innovation is a key way of meeting current challenges in the oil and gas industry.

And supporting Scotland’s supply chain companies as they continue their long history of leading innovation in the industry is one of our priorities.

That’s why we’ve helped more than £6 million worth of innovation projects in the last year and it’s why we’re helping the Scottish supply chain work with global companies to bring innovative products and services to market.

HOW WE CAN HELPA typical Seek & Solve project will last six to 36 months and our funding can cover up to 45% of your costs.

To find out if your project is eligible, and how to apply, visit www.scottish-enterprise.com/seekandsolve

16 Supporting Scotland’s Oil & Gas Industry

CASE STUDY – RAPTON OIL

If one of your customers, or a potential customer, has agreed to help fund a R&D project, a Seek & Solve grant could help you to reduce your costs.

The Seek & Solve service is designed to increase collaboration between large multi-national companies and the innovative SMEs that make up Scotland’s oil and gas supply chain.

When Aberdeen-based oil and gas technology start-up Raptor Oil needed backing to develop a new digital data reporting system, our Seek & Solve service helped it secure £1.5 million in funding and an international partnership deal.

Their joint, 17-month, R&D project will concentrate on improving data communication in the oil and gas industry, with the new funding helping Raptor test its product in virtual and real-life environments.

Raptor’s technology has the potential to enhance the performance and reliability of offshore drilling telemetry systems.

GLOBAL FIRMS BACK SCOTS INNOVATIONRaptor’s new technology has already sparked interest from global oil and gas companies.

Thanks to SE’s help, Norwegian multinational Statoil, through its LOOP funding, supported Raptor during a second proof of concept phase and will provide further financial backing during the R&D phase, making a total investment of £850,000. ConocoPhillips will also support the project.

Raptor Oil’s CEO, Gordon Cowie, said:

“Following two successful proof of concept phases we aim to move into the industrial R&D phase by replicating real life conditions at our purpose built test site in Aberdeen to research and refine our technology.

“We believe this is a key step in advancing our potentially ground breaking technology, with end user validation and test data evidence derived from simulated and real well environments.”

SEEKING THE BEST-FIT SOLUTIONOur Seek & Solve service is an example of customer-led innovation, with global companies acting as customers and Scottish supply chain companies acting as vendors.

That means Scottish firms can work with companies anywhere in the world, while ensuring that key R&D work is carried out here in Scotland, continuing our long tradition of developing innovative approaches to challenges in the oil and gas industry. In Raptor’s case that means working with global firms like Statoil.

SEEK & SOLVE SOURCES BUSINESS BACKINGWhen it comes to finding the perfect fit for your growing business, Scottish Enterprise can offer both off-the-peg and bespoke support.

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Supporting Scotland’s Oil & Gas Industry 19

WELCOME FROM IAN PHILLIPS

AN INTRODUCTION TO THE OIL & GAS INNOVATION CENTRE BY CHIEF EXEC, IAIN PHILLIPS The development of near-to-market technology will play a key role in addressing the exploration, production and decommissioning challenges faced by the oil & gas industry on the UK Continental Shelf and around the world. At what is a turbulent time for the industry, innovative solutions are a focus for businesses as they seek to reduce costs and maximise economic recovery.

The combination of a mature basin and ageing infrastructure mean that the opportunities for developing ground-breaking technology for the UKCS are significant. At the Oil & Gas Innovation Centre (OGIC), we link SMEs looking to develop technology with the knowledge and expertise of Scotland’s universities and research institutes; connecting around 2,500 oil and gas operators and service companies to more than 450 academic staff and researchers working in disciplines with oilfield application.

Often the concept of developing new technology can seem daunting to companies. Finding the resources, from funding to staffing, can seem impossible, particularly at a time when Operators are cutting budgets. As well as offering funding to support the academic research element of a project, we help companies find the right University resource for their project, develop those relationships, and offer advice on managing research and development projects to ensure that they run smoothly and that technology is brought to market as quickly as possible.

We can help companies find the resources to develop their technologies and get them to market. Through our partnership with Scottish Enterprise and Highlands and Islands Enterprise, and with the backing of the Scottish Government and Scottish Funding Council, we aim to transform industry and academic collaboration in order to fast-track pioneering technology

The OGIC team is facilitating new collaborations between the brightest and best in academia and industry – the engineers, lateral thinkers, pioneers and problem solvers who are helping to deliver the technology developments that will facilitate the future of Scotland’s oil and gas industry.

Ian Phillips, Chief Executive, Oil & Gas Innovation Centre

OGIC links over

2500companies to over

450academics to deliver new and innovative solutions for the oil & gas industry.

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MAKING THE PRACTICAL, POSSIBLEJust as the oil and gas extracted from the earth has to be refined before use, so the technology behind its extraction has to be refined. It’s no use having a game-changing idea or invention if it can’t be put to practical and profitable use.

That’s where the smart thinking, technical know-how and research and development funding of OGIC comes into play. If you’ve got an idea, we have the expertise to help make it a reality.

Since its launch, OGIC experts, through a series of industry events and workshops, have proactively targeted companies in the oil and gas sector to make them aware of the help available to encourage, fund and refine technological innovation.

Its focus is on technologies that will assist in the recovery of UK reserves, with the main priorities being innovations relating to: improving exploration outcomes; well construction, drilling and completions; enhanced oil recovery; asset integrity and life extension; shale gas exploitation; subsea; product optimisation and decommissioning.

Often, the best ideas come from collaborative working. By building strong links between industry and academia – the practical and the theoretical –

we hope to help to unleash a new gold rush for the energy sector.

GETTING OUR HANDS DIRTYWhen it comes to the practical application of new ideas, the men and women of the OGIC group are more than happy to roll up their sleeves to help you.

Got a new product? They’ll help you field test it. Want to number-crunch your test results? They have both the brain and computing power to help you iron-out your analytics. Need R&D assistance to make your innovative idea a practical reality? They have the insider knowledge to find the perfect academic partners to help take your product to market.

In an age of online dating, OGIC acts as a practical ‘matchmaker’, linking energy firms to like-minded universities.

And the support doesn’t end there. Once your new product or service is ready for roll out, OGIC, through its Scottish Development International, Scottish Enterprise and Global Scot partnerships, has the business links and sales and marketing nous to help you go global.

20 Supporting Scotland’s Oil & Gas Industry

INNOVATION HELPS POWER OIL AND GAS SECTOR

Since launching in February 2014, with £10.6million from the Scottish Funding Council, OGIC, based at the Innovation Park in Aberdeen, has established itself as a vital bridge between energy businesses and the world-class research capabilities in Scotland’s universities.

OGICS’s aims are simple: to foster, encourage and fund technological innovation and research and development in the energy sector.

It provides a single access point to the knowledge and capabilities of Scottish universities for the oil and gas industry. It can part-fund and provide management support to projects with the potential to deliver technology solutions to the exploration, production and decommissioning challenges facing the UK Continental Shelf and assist small and medium sized supply chain companies to identify other public funding sources.

OGIC effectively links more than 2,500 oil and gas operators and service companies to 450 academic staff and researchers in Scotland working in oil and gas related areas.

STANDING ON THE SHOULDERS OF GIANTSIf it wasn’t for the innovators and the risk-takers of the past, Scotland wouldn’t have an oil and gas industry. Most people, looking at the North Sea, and wondering how to extract the natural resources lying beneath its crashing waves, would have shaken their heads, given up and gone home. Not Scotland!

Our energy pioneers and practical academics put their heads together to come up with new and workable ways of extracting nature’s bounty from one of the most inhospitable environments on earth, to help heat and light our homes and power the nation’s industries.

Our ability to overcome the challenges of subsea exploration in the North Sea has helped forge an oil and gas industry in Scotland which is recognised the world over for its expertise.

Today, as margins narrow and the energy sector faces fresh challenges, a new generation of engineers and academics are already busy solving tomorrow’s problems, and the OGIC team will be with them every step of the way.

INNOVATION HELPS POWER OIL AND GAS SECTOROGIC – Scotland’s Oil and Gas Innovation Centre – brings together the best in industry and academia to help boost the energy sector.

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Supporting Scotland’s Oil & Gas Industry 23

INNOVATION HELPS POWER OIL AND GAS SECTOR

ENGINEERING AMBITIONSOGIC is already helping oil and gas firms and supply chain companies to source funding and find academic partners for essential research and development and field testing.

To date, 100 individual technology businesses have approached OGIC for support, 18 technology innovation projects are currently in discussion and four projects have been approved with the first project now complete.

OGIC chief executive Ian Phillips said: “The drop in the oil price has cast challenges facing the industry into sharp relief, increasing the need for us to work smarter and more efficiently. Technological innovation will be key to maximising the recovery of reserves and by accelerating the development of near to market technologies we aim to support innovations that cumulatively address the exploration, production and decommissioning challenges in the North Sea.

“By supporting collaboration between SMEs and the academic resources that exist in Scotland we can accelerate the delivery of new technologies to market.”

IT’S A LOGICAL DECISION…From big, game-changing ideas, to small, genius innovations, we want to help share and develop your engineering ambitions.

If you’ve got the ideas, we have the expertise and contacts to help you make them a reality.

Please email us at [email protected], call us on 01224 444 000, or visit www.ogic.co.uk to find how we can help you boost your business.

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Supporting Scotland’s Oil & Gas Industry 25

CASE STUDY – HYDRASUN

“The funding process with OGIC proved to be incredibly quick and responsive and made the whole process very easy. OGIC were an effective and efficient partner supporting Hydrasun to develop this technology.”

TESTING, TESTING…The work proposed and carried out by Strathclyde formed the basis of an extensive qualification programme of Hydrasun’s complex fluid transfer technology. The work involved destructive and fatigue testing of a number of samples to fully test and profile their properties.

The test results provided Hydrasun with valuable information on the product’s performance capabilities over a range of simulated operational conditions. This work has also enabled Hydrasun to start early engagement with key customers performing well-intervention activities, which will also help to inform, define and guide further qualification activities.

Ernie Lamza, chief operating officer at OGIC, said:

“Production efficiency is an area where significant improvements can be made in the North Sea. The collaboration that we facilitated and supported between Hydrasun and the University of Strathclyde enabled testing of a new technology to accelerate qualification activities and open dialogue with potential end users.”

SPIN-OFF BENEFITSDr James Wood, of the University of Strathclyde’s Department of Mechanical and Aerospace Engineering, said:

“Innovative design in flexible composite construction presents significant challenges, both in experimentation and simulation. However, the facilities and expertise we have at Strathclyde proved to be an excellent match for the initial qualification stages of this new product.

“This has led to a fundamental understanding of the construction’s complex mechanical behaviour. This fascinating research project with Hydrasun and OGIC has also generated further development ideas and practical projects for our final year Masters students, which is invaluable both for their career prospects and for our engagement with industry.”

HOW CAN OGIC HELP YOU?Would you like to know more about OGIC and how we can help plan and fund your next innovative R&D project?

Please email us at [email protected], call us on 01224 444 000 to find how we can help you boost your business.

24 Supporting Scotland’s Oil & Gas Industry

CASE STUDY – HYDRASUN

When Aberdeen-based engineering firm Hydrasun realised they needed university input, the OGIC team found them the perfect partner at Strathclyde.

Hydrasun is a leading specialist provider of integrated fluid transfer, power and control solutions to the energy, petrochemical, marine and utilities industries worldwide. The company has a track record for successfully delivering flexible hoses, hydraulic components, integrated instrumentation packages, umbilicals, extruded solutions and integrity management services worldwide

TECHNICAL CHALLENGESMaximising the production of oil and gas from subsea wells is a critical activity as the number of new field discoveries diminish.

A key challenge of keeping wells, and their associated control equipment, operating at maximum flow is to

keep them clean and free from restrictions or blockages such as hydrates or wax, which can reduce production rates. This is traditionally carried out by performing a so-called ‘light well intervention’, utilising a rig and steel coiled tubing to pump cleaning fluids into the well, the costs of which can be significant. A lower cost alternative is to use a ship with specialist deck equipment. However, further reductions in costs are critical, particularly in light of the current cost challenges faced by the industry, which has led to the accelerated development by Hydrasun of a well-intervention hose that enables significant savings over conventional systems.

After meeting at an industry event, Bob Drummond, CEO of Hydrasun, and OGIC Chairman Paul de Leeuw, recognised the potential for OGIC’s support.

PERFECT PARTNERFurther reductions in costs are critical, particularly in light of the current cost challenges faced by the industry, which has led to the accelerated development by Hydrasun of a well intervention hose that enables significant savings over conventional systems. Hydrasun engaged with OGIC to support the development of this new technology and selected the University of Strathclyde to be its academic partner.

OGIC project manager, Mhairi Begg, said:

“It took us two months from inception to application and completing commercials and four months of testing, analysis and reporting.”

Ben Coutts, Director Engineering and Research & Development at Hydrasun, said:

OGIC HELPED HYDRASUN FIND RESEARCH PARTNEROGIC’s first funded project, involving collaboration between Hydrasun and the University of Strathclyde was completed in early 2015. Hydrasun worked with Strathclyde on the testing of an innovative well intervention solution.

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INTERNATIONALISATIONThe very name,

Scotland, and the engineering clout

we have, carries a lot of clout around the world.

EXPORT SUPPORT FOR SCOTLAND’S OIL & GAS SUPPLY CHAIN.

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LOOKING AHEAD

New international research confirms Scotland’s global position as a world leading training ground for the oil and gas sector.

The Scottish Enterprise survey of senior global industry figures shows that 74 percent of respondents believed Scotland was one of the world’s leading training grounds for the industry, with 71 percent agreeing that Scottish employees are some of the most dependable in the sector.

The research looked at the views of more than 260 senior industry leaders from businesses employing approximately 2.2 million people across the globe.

So we know global industry leaders are keen to do business with Scotland’s supply chain – and we can help you attend the biggest global oil and gas events and introduce you to key industry figures:

www.scottish-enterprise.com/globalsurvey

28 Supporting Scotland’s Oil & Gas Industry

EXPORT OVERVIEW

Put it down to 50 years’ experience in the North Sea, put it down to our innate ability to solve problems or to our ambition and tenacity but, when it comes to getting the job done, Scotland is a world-leading skills hub.

Our latest annual supply chain survey, which shows international export sales growing to £11.2 billion, clearly demonstrates the importance of Scotland’s oil and gas sector to the Scottish economy. Scotland’s oil and gas supply chain companies saw the total value of sales increase by 11% in 2013.

Our survey of international supply chain activity found that:

• Domestic sales grew to £11 billion from £9.9 billion in 2012

• International sales grew to £11.2 billion, an increase of 12% from 2012

For the second year running, international sales accounted for over 50% of total sales.

SUCCESS IN KEY WORLD MARKETS The findings confirm that Scotland’s supply chain companies continued to trade successfully in key markets around the world:

• North America remained the top region for international sales, with sales rising by over a third to £4.1 billion,

followed by the Middle East and Asia Pacific, which rose by 18% and 15% respectively

• The USA continues to be the number one market for international sales, achieving £3.07 billion

• New entrants in the top 10 country rankings include Singapore, Qatar, the Netherlands, Iraq and the UAE

• As a total percentage of international sales, the USA took top position, followed by Singapore and Canada

• The Middle East, Africa, North America and Asia Pacific are the most reported regions in terms of immediate growth opportunities

£4.2 billion of the supply chain’s international sales came from direct exports, with £7 billion of sales via international subsidiaries.

We can help you make the most of opportunities in key oil and gas markets around the world.

SUPPORTING INTERNATIONAL TRADE IN OIL AND GASWhen it comes to exporting technology and expertise, Scotland’s oil and gas sector is a star performer.

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Supporting Scotland’s Oil & Gas Industry 31

PASSPORT TO SUCCESS Doing business outside Scotland doesn’t need to be difficult.

Whatever country you’re looking at, or stage your business is at, we can help.

Even if you’ve never exported before we can help:

And we’ve got a team of export advisers who can provide impartial advice to help you understand overseas business practices and make the most of the services and support available to help you trade successfully in international markets.

You can start making the most of overseas opportunities right away.

First we’ll ask you a few straightforward questions about your current business, your target customers and your future ambitions.

The more you can tell us about where you are now and what you hope to achieve, the better the advice and support we can offer.

We’ll help you:

• Identify the best opportunities

• Understand what’s involved

• Develop the resources and skills you need

And we’ll provide tailored advice outlining what your business needs to export successfully.

Our Export Services team offer a range of tailored support packages designed to help the supply chain maintain its competitive advantage and overcome the challenges currently facing the industry.

www.scottish-enterprise.com/export

EXPORT OVERVIEW

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Supporting Scotland’s Oil & Gas Industry 33

INTERVIEW WITH SMART MASONI

OPPORTUNITIES IN ADVERSITYWith the current downturn in the North Sea sector, more and more Scottish firms are looking to increase their revenue/turnover by seeking new overseas markets.

The very name, Scotland, and the engineering expertise we have, carries a lot of clout around the world. Many other oil and gas-producing nations look to us to help solve their problems. Knowing the unique products and services Scottish firms can offer, they are often eager to link up or partner with them.

To stay ahead in such a globally competitive market, Scotland must continue to innovate and strengthen its knowledge base.

WE HAVE THE SOLUTIONSWhen it comes to companies’ fears about expanding into overseas markets, I’ve heard them all.

Some firms still think only big companies can operate in international markets. That’s rubbish. Often, smaller, more agile firms, with lower overheads, can make headway where the industry giants can’t.

Other common fears are; you’ll never get paid; you can’t export services; the lead time is far too long; overseas work will threaten our core UK business; it’s too risky or too expensive.

All of these problems can be overcome. Look around the global oil and gas sector; from Africa to Australasia, the Far East to the Americas, ambitious Scottish firms are already setting the pace in almost every region of the world.

EXPERTISE AND INTEGRITYOverseas clients value the expertise and integrity that Scottish firms bring to the table.

The one thing Scottish oil and gas companies shouldn’t be is afraid.

The future is bright for companies that want to take advantage of overseas opportunities.

There have been recent oil discoveries in Norway and Trinidad and Tobago, and some countries, such as Iran, are opening up again, so there is still plenty of room for growth in the oil and gas sector.

So long as Scots firms play to their strengths – innovation and creative thinking – there is a whole world waiting for them out there.

32 Supporting Scotland’s Oil & Gas Industry

INTERVIEW WITH SMART MASONI

When it comes to Scotland’s oil and gas sector, our export advisers will provide impartial advice to help you understand overseas business practices and make the most of the SE and SDI services and support available to help you trade successfully in international markets.

Aberdeen-based export adviser Smart Masoni outlines the process, opportunities and potential pitfalls of taking your business onto the international stage.

TAKING THE FIRST STEPDue to the varied nature of the Scottish oil and gas industry, and the many different companies operating in the sector, each export story follows its own path.

The first step for us, at Export Services, is getting to know the business, what it needs and where it wants to do business. Obviously, this varies depending on each businesses’ aspirations and on the services or products they offer.

We can provide upskilling in the requirements of engaging in international trade and the various region and country-specific legal rules and business frameworks that companies need to be aware of before trading in certain markets.

We also run market awareness events, where companies are briefed on emerging markets and overseas opportunities. These events are a great way for like-minded businesses to network.

I get a real thrill and no little personal satisfaction when the companies we’ve helped go on to land overseas orders and business.

SCOTTISH OIL AND GAS FIRMS HAVE A HEAD STARTBefore I joined SE, my background was in business development. I also set up and ran my own business, in Nigeria, before going on to study International Trade at Aberdeen’s Robert Gordon University.

From there, I went to work as an international researcher with the Aberdeen and Grampian Chamber of Commerce, helping to set up their Africa Business Centre.

Scottish oil and gas firms, with their history of expertise, innovation and ability to deliver clever solutions, have a head start when it comes to doing business overseas.

That ability to innovate, to think outside the box, has kept us at the cutting edge of the industry.

We can help businesses overcome some of the challenges they face when trading overseas, challenges they might not have encountered in the domestic market.

DOING BUSINESS OUTSIDE SCOTLAND DOESN’T NEED TO BE DIFFICULTWhatever country you’re looking to trade with, we can help.

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PAGE HEADINGS

OUR EXPORT ADVISERS WILL PROVIDE IMPARTIAL ADVICE TO HELP YOU UNDERSTAND OVERSEAS BUSINESS PRACTICES AND MAKE THE MOST OF THE SE AND SDI SERVICES AND SUPPORT AVAILABLE TO HELP YOU TRADE SUCCESSFULLY IN INTERNATIONAL MARKETS.

34 Supporting Scotland’s Oil & Gas Industry

INTERVIEW WITH SMART MASONI

ARE YOU ELIGIBLE?Any company registered in Scotland is eligible for free one-to-one support from our export advisers.

The service is delivered by Scottish Development International (SDI), the international arm of Scotland’s enterprise agencies.

WHAT’S INVOLVED?You can start making the most of overseas opportunities right away.

First we’ll ask you a few straightforward questions about your current business, your target customers and your future ambitions.

The more you can tell us about where you are now and what you hope to achieve, the better the advice and support we can offer.

We’ll help you:

• Identify the best opportunities

• Understand what’s involved

• Develop the resources and skills you need

• And we’ll provide tailored advice outlining what your business needs to export successfully

www.scottish-enterprise.com/exportadvice

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THE INCUBATOR OFFICE IS A GREAT PLACE TO STARTImagine stepping off the plane for the first time at Houston’s George Bush International Airport, looking around the city and wondering: ‘How the hell are we going to get started here?’

Greater Houston is massive, it has the population of Scotland, in an area equivalent of from Glasgow to Dundee. Coming here without SE support, where would you even begin to start?

Luckily, SE’s Incubator Office in the city gives you that starting point. Basically, you come along, you plug in and you’re in the network – and not just with electronics but, with contacts and people – and after that, it’s up to you.

Think of it as like being planted in a plant pot; you have everything you need around you but, you still have to dig! And, if you’re prepared to that, the Incubator is a wonderful place to start.

36 Supporting Scotland’s Oil & Gas Industry

TRADE SHOW BLOG BY JIM SPARTAN

Jim, a co-founder and director of the Glasgow-based smart technology firm, was in the States to push Spartan’s integrated ‘app store’ and their handheld, wireless technology, which allows offshore and field engineers to work, stocktake and invoice in real time, thus cutting time, paperwork costs and back office functions.

Jim said:

Events like OTC are just like a marketplace. If you are a farmer, or if you produce some other goods, you have to take them to market. And the market isn’t just on the web, it isn’t just going and mailing your customers, it’s actually coming out and meeting them.

OTC is the fourth largest show of its kind in the world –over 109,000 people came here last year. If you can imagine, that’s an area the size of two football parks, filled with people who are all potentially going to buy your product.

We’re able to leverage on Scottish Enterprise’s presence at these kind of shows – in Norway, Aberdeen and here – and use the reputation that they’ve built up to our advantage.

THERE’S NO HIERARCHY HERE, YOU CAN TALK TO CEOS, PRESIDENTS, VICE PRESIDENTSBeing here is a no-brainer. If you are a small company and think you have something of value and that will deliver, in a way, it’s easier to communicate that here. There’s no hierarchy here, you talk to CEOs, presidents, vice-presidents

There’s already a very big Scottish community out here. If you want help from top people, people who really know what they’re talking about, people with 20 years’ experience and a contacts book to die for, all you have to do is ask.

We got in contact with Scottish Enterprise very early and found them very professional. It’s like any relationship, you get out what you put in. If you take the time to go along and speak to the people at SE, they know the business, they’ve helped other companies. If you’ve got a good relationship, and you’re fortunate enough to be account managed by SE, you wouldn’t believe the support that is available.

www.scottish-enterprise.com/oilandgas

WHY MAKING THE MOST OF SCOTLAND’S PRESENCE AT THIS YEAR’S OFFSHORE TECHNOLOGY CONFERENCE (OTC)Jim Green, of Spartan Solutions, explains why making the most of Scotland’s presence at this year’s Offshore Technology Conference (OTC) in Houston, Texas, was a “no-brainer” and how our incubator office in Houston helped him to hit the ground running.

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Supporting Scotland’s Oil & Gas Industry 39

COUNTRY GUIDES FEATURE

From the icy shores of Canada to the crystal clear waters off Australia, the global oil and gas industry is forging ahead. Emerging economies and new markets are opening up all the time, and we want Scottish companies to grab their share of that business.

With over 50 years’ experience of working in one of the toughest environments on earth, Scottish oil and gas professionals, and supply chain companies, have the tools, experience and the expertise to help new customers capitalise on their natural resources.

From fabrication, IT and subsea services, to specialist well, lab, training and consultancy work; the business opportunities for Scotland are immense.

YOU WON’T BE ALONEA number of pioneering Scottish companies have already established overseas operations. Almost anywhere in the world, if there is a platform being built, seismic or geological studies being carried out or a well being drilled, you will hear the familiar burr of Scottish voices.

While some overseas markets can be challenging, with language and cultural differences adding extra hurdles to entry, the rewards, once embedded, can be huge.

Sottish companies already befitting from working in overseas oil and gas markets include:

• Petrofac and Onyx IES, in Malaysia

• ACE Winches and IT provider Absoft, in Norway.

• the Wood Group and Adrok, in Canada

• Aggreko, Petrofac and Technip, in China

• activpayroll and Romar International, in Australia

NEW HORIZONS: FRESH CHALLENGES – DOING BUSINESS IN KEY OVERSEAS OIL AND GAS MARKETSScottish firms and engineers have a long history of going the distance to reach the prize. Today, as domestic markets tighten, ambitious Scots are once again looking abroad to see where the next business opportunity will arise. Scottish Enterprise is with them on that quest, offering expert advice, local knowledge and in-country support to help secure contracts and build better overseas links.

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MANUFACTURINGSuccessful

manufacturing businesses must have a relentless

focus on improving operational excellence

and delivering innovative products.

40 Supporting Scotland’s Oil & Gas Industry

COUNTRY GUIDES FEATURE

• Subsea 7, the Wood Group, Kenny and MDT International, in Brazil

• UniversalPegasus International, in East Africa

• Downhole Products and Petrofac, in Saudi

• Howco Group and Online Electronics Group, in the UAE

GLOBAL INSIGHTS EASE ENTRYWe help Scottish oil and gas companies find new business in key markets around the world.

Scottish Enterprise has compiled a number of ‘in-country’ guieds, highlighting the overseas opportunities for Scottish companies. Whether you want to enter the mature markets of Saudi Arabia and the UAE, the Norwegian sector of the North Sea or the emerging markets in China, East Africa or Malaysia, we have the facts, figures and industry insight to help hit the ground running.

We offers specialist oil and gas guides for companies planning to do business in:

• Australia – The oil and gas sector is benefiting from increased investment thanks to an abundance of hydrocarbon resources and a shift of emphasis in the energy sector away from coal.

• Brazil – The world’s tenth largest producer of energy, it has South America’s second largest proven oil reserves. The oil and gas industry is key to Brazil’s sustained economic growth.

• Canada –The world’s sixth largest oil producer it is ranked third in the world for proven oil reserves.

• China – In 2010 China overtook Japan to become the world’s second largest economy and it’s predicted that

it will become the world’s largest, based on Purchasing Power Parity (PPP), in 2016.

• East Africa – Operators working in East Africa, including Andarko, BG, Shell and Ophir, are expected to spend around $2 billion bringing the region’s fields to production.

• Malaysia – An emerging market, Malaysia’s growing energy demands mean the oil and gas industry has grown in importance.

• Norway – Like Scotland, Norway enjoys a mature and successful oil and gas industry with a well-developed supply chain network.

• Saudi Arabia – Saudi Arabia’s daily oil production of just under 12 million barrels per day is more than Brazil, Nigeria, Venezuela, Qatar and Norway added together.

• United Arab Emirates – Oil was first discovered in the UAE in 1958 and today production is in excess of 2.8 million barrels per day, with oil and natural gas exports accounting for around 40% of total exports.

TIME TO GET SERIOUSWe also offer a range of advisory services – from expert ‘in-country’ advice to exclusive market insights and data analysis – to help you prepare to enter your target market.

Contact our specialist oil and gas advisors for help in:

• Our doing business outside Scotland services

• Support from Scottish Development International

• Support from the GlobalScot network

• Support from UKTI

www.scottish-enterprise.com/countryguides

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Supporting Scotland’s Oil & Gas Industry 43

SMAS OVERVIEW

Successful manufacturing businesses must have a relentless focus on improving operational excellence and delivering innovative products and, for that, a focus on business improvement is essential.

Scotland’s European competitors have focused on this for decades and the evidence suggests that this is the essential platform for innovation and growth.

Benefits to businesses using SMAS’s services will be realised through:

• One-to-one advisory services for manufacturing companies, particularly around business process improvements

• Raising awareness of best practice in manufacturing, through practical workshops, onsite factory visits and learning journeys

• Support for collaborative projects between companies that will develop the capability of Scottish manufacturers

• Connecting you to many other relevant services provided by key partners

• Linking business improvement tools with behavioural change through the new Business Improvement Academy

MAKE THE MOST OF YOUR PRODUCTS IN THE OIL AND GAS SECTORSMAS help and advice has already helped firms; including Hayward Tyler Fluid Handling, Aker Solutions, Lamond and Murray, the Mitchell Engineering Group, the Hydro Group, Titan Torque and Online Electronics to streamline and boost their businesses.

After attending a SMAS best practice presentation, Hayward Tyler Fluid Handling introduced a 5S improvement programme to optimise the working environment at their East Kilbride base.

SUPPORTING AKER SOLUTIONS “We have a wealth of knowledge and experience within our business. However, with the specific expertise and fresh pair of eyes perspective that SMAS brought to the table we now have more clarity on the road to increased manufacturing capacity. We have already enlisted SMAS to support us in other areas of the business.”

Karon McDonald, vice-president of operations and manufacturing at Aker Solutions

www.scottish-enterprise.com/oilandgas

THE MODERN DEFINITION OF MANUFACTURING IS BROAD. IT’S THE FULL LIFE CYCLE OF ACTIVITIES FROM RESEARCH,

DESIGN, DEVELOPMENT, PRODUCTION, LOGISTICS AND SERVICE PROVISION TO END OF LIFE MANAGEMENT.

42 Supporting Scotland’s Oil & Gas Industry

SMAS OVERVIEW

From widgets to wellheads, deep-sea submersibles to drilling rigs, the Scottish oil and gas industry has a history of building the best. But the best can always be better.

The specialist business advisors at SMAS have a proven track record of troubleshooting across a wide range of technologies and industrial sectors.

They are practical, down-to-earth people with passion, commitment and a credible track record in improving manufacturing processes for bottom-line benefit.

Specialist help is also available from our team of associate partner organisations.

Helping Hydro Group

“I’m also a big advocate of SMAS as we’ve reaped the benefits of what they do in a number of areas. For instance we spent a lot of time developing our staff and we have a really low staff turnover which is quite unusual in Aberdeen – less than 2.5%”

Doug Whyte, Managing Director at Hydro Group

SMAS is focused on developing a culture of business excellence in all manufacturing companies in Scotland.

The team – specialists in process improvement; lean manufacturing and innovation – brings together over 500 years of manufacturing expertise, from shop floor through to director level.

Set up 10 years ago by Scottish Enterprise, the team’s specialist advisors can help your business on its journey to excellence and show you how to maximize your operational capability through tailored, support focused, quality improvement.

To date, SMAS has delivered 1300 company improvement projects, resulting in over £165 million of productivity savings

STAND OUT FROM THE CROWDTo be an export-driven manufacturing business, customers need to have faith in your products and processes. This is achieved by having highly-engineered, reliable products that offer real value, produced and delivered in the most efficient way possible.

A critical aspect of this is ensuring that price is not the single determining factor – it should be a combination of quality, performance and value. Think German cars, Scottish whisky and Swiss machine tools. All these products have local alternatives, but consumers are still willing to purchase them.

SMAS CAN HELP YOU MAKE IT BIG IN OIL AND GASManufacturing is the lifeblood of any successful economy and the Scottish Manufacturing Advisory Service (SMAS) has the expertise to help streamline and boost your oil and gas business.

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Supporting Scotland’s Oil & Gas Industry 45

CASE STUDY – HYDRO GROUP

CONTINUED EXPANSION Hydro Group’s workforce has almost doubled to over 100 people in the last five years, with ongoing work to increase the size of their premises likely to increase this further.

The company’s workload is now split into 40% oil and gas, 40% defence and 20% aerospace, renewable energy and other industries, reflecting Hydro Group’s decision to embrace new sectors.

Doug Whyte, managing director of Hydro Group, says of Scottish Enterprise’s support for the company:

“Most businesses are so busy dealing with the daily noise, they forget to think strategically. Scottish Enterprise is always looking at ways to try and improve your business and it’s not just about the money, in fact it’s least of all

about the money, it’s about bringing in other knowledge or experience in another area which would help your business.

“I’m also a big advocate of SMAS as we’ve reaped the benefits of what they do in a number of areas. For instance we spent a lot of time developing our staff and we have a really low staff turnover which is quite unusual in Aberdeen – less than 2.5%.

“It’s a good investment because if you’re losing 10% of your staff then the cost of recruitment and retraining can be between £85,000 - £90,000 a year which is quite significant.”

GET SUPPORT FOR YOUR COMPANYWe’ve got a range of services to help companies like yours enjoy successful growth like Hydro Group.

Get support from SMAS

www.scottish-enterprise.com/SMAS

44 Supporting Scotland’s Oil & Gas Industry

CASE STUDY – HYDRO GROUP

New industries, new markets and larger premises have defined Hydro Group’s growth since the company first started receiving our support.

Formed in 1982, Hydro Group specialises in subsea technologies, designing and manufacturing products for the oil and gas, renewable energy and defence industries.

HOW WE HELPED Hydro Group has worked with Scottish Enterprise for 12 years, benefiting from a range of services and support including:

• Leadership training

• International trade support

• Product development support

• Scottish Manufacturing Advisory Service (SMAS) support

We’ve also supported the company’s move to larger premises and the extension of operations into new industry sectors.

NEW MARKETS, NEW CONTRACTSWith our support Hydro Group identified south-east Asia as a potentially lucrative international market. Two years ago we were able to help the company open an office in Singapore, providing a springboard to increase their operations in the region.

Hydro Group is also now on track to become one of the first Scottish companies to complete the bronze level of the stringent SC21 supply chain test, a management tool for improvement and efficiency that has already helped the company win two recent defence-related contracts.

Indeed Hydro Group recently won a £2 million long-term defence contract with BAE Systems to supply parts to the Successor submarine, a relationship with the potential to grow to nearly £10 million with six new submarines currently being built.

A fantastic journey We’ve been on a fantastic journey with Scottish Enterprise. Sometimes when you’re running a business you can feel stuck out on a limb when you’re up against all sorts of problems. What the account managers at SE are good at is putting you in touch with people who have dealt with similar issues so that you don’t have to keep reinventing the wheel.

Doug Whyte, Hydro Group

HELPING HYDRO GROUP GROW AT HOME AND ABROADWorking with Scottish Enterprise over the last 12 years has helped Hydro Group expand its operations and reach valuable new markets.

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OUR NETWORKSTapping into our global networks

can open the door to a world of talent

and expertise.

NETWORK SUPPORT FOR SCOTLAND’S OIL & GAS SUPPLY CHAIN.

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48 Supporting Scotland’s Oil & Gas Industry

TALENTSCOTLAND OVERVIEW

TalentScotland helps companies in Scotland overcome the barriers of international recruitment, providing fast, easy access to a global pool of skilled job seekers already warm to Scotland as a career destination.

TalentScotland helps these skilled international job seekers understand Scotland’s career landscape, and search for employers and jobs. We provide individuals and their families with all they need to know about living in, and moving to Scotland.

Just as generations of ambitious and enterprising Scots have blazed trails in new and emerging oil and gas markets, so, today, skilled overseas workers are now looking to further their career prospects right here in Scotland.

Our world-renowned education system; relatively low cost of living; outstanding natural beauty; good quality of life; and abundance of social and leisure activities, make Scotland a magnet for ambitious professionals looking to broaden their employment prospects.

At the same time, we understand that the decision to relocate is not made on a whim, and those with key skills have the whole world to choose from. The role of TalentScotland is to ensure that they choose Scotland.

For employers here in Scotland, working with TalentScotland makes it easier to attract and recruit an international, skilled workforce to Scotland.

HOW WE CAN HELP Are the specialised skills and experience your companies need in short supply? Are you struggling to navigate the immigration system?

TalentScotland works hard to inspire experienced and internationally mobile job seekers to choose Scotland for their next career move, and we can help you overcome some of the barriers to recruiting from outside Scotland.

From Europe and America to India, China and beyond, we’re helping people from around the world to bring their specialised skills to companies across Scotland.

Via TalentScotland, you can promote your employer brand internationally, advertise difficult-to-fill posts, get tailored immigration information, and access materials and insights to help you showcase the best of Scotland to international candidates and their families.

With an employer account on www.talentscotland.com, you have fast, easy access to our services and to a pipeline of talented industry professionals, already informed about Scotland and committed to living and working here.

Find out more: www.talentscotland.com/employers contact us on +44 (0)131 313 6236 or email [email protected]

TALENTSCOTLAND – HELPING YOU ATTRACT THE BEST INTERNATIONAL TALENTIf you need to look beyond Scotland for the high level or scarce skills your company needs to grow, TalentScotland can help.

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Supporting Scotland’s Oil & Gas Industry 51

GLOBALSCOTS OVERVIEW

GlobalScots can also offer help and advice with:

• Entering new markets, finding customers and suppliers

• Support for growth and international trade opportunities

• Advice on planning, knowledge and skills

• Support to build a strong culture of leadership in your business

• Share in GlobalScot expertise at masterclass events

• Inspiration to achieve your full potential

• Industry Insights

• Insight into key sectors and global emerging opportunities

• Support to identify the right opportunities for your business

EXPAND YOUR HORIZONSWherever you want to work in the world, wherever you see new or emerging markets for Scottish oil and gas products or services, GlobalScot will already have ‘boots on the ground’.

From finding the right office base, to knowing how to negotiate local business and cultural customs, hooking up with in-country experts can speed your journey to overseas success.

Scotland’s long history of international business innovation and engineering excellence already carries global cachet. Travel to any of the world’s oil and gas producing countries and you’re sure to hear a Scottish accent.

When looking to expand overseas, patience and persistence will pay off but, having a GlobalScot on your team offers an ‘in’ which most new arrivals can only dream of.

HOW DO I GET ON-BOARD?Have you got ambitions to become a more focused, dynamic and profitable company? GlobalScot gives ambitious Scottish companies like yours the chance to learn from some of the outstanding business leaders in their field.

The network is spread across the world making it an invaluable source of local knowledge for companies seeking to develop, expand and thrive in a competitive international market.

Your company can benefit from:

• Practical help and advice

• Contacts and knowledge about the market you are targeting

• Informal mentoring

Connect with our GlobalScot network – www.globalscot.com

50 Supporting Scotland’s Oil & Gas Industry

GLOBALSCOTS OVERVIEW

When entering an overseas market for the first time, it helps to have a local guide; one who talks your language and knows the lie of the business landscape.

GlobalScot is a diverse network of business leaders, successful entrepreneurs and executives with a connection to Scotland – and a strong desire to see Scottish businesses succeed on the world stage.

Launched in 2001, the network has helped transform the face of Scottish business, giving hundreds of emerging, growing and well-established companies in Scotland a head start to compete in the global marketplace.

Our worldwide network of senior business people can help Scottish oil and gas supply chain companies to identify new leads, develop new business and enter overseas markets that might otherwise be difficult to access.

INSIDER ADVICE IS VITALScottish oil and gas firms, including Rig Control Products (RCP), Glenhead Engineering, WFS Technologies, Global Pipe Components and Aventa, have already seen the benefits of accessing the expert local advice available through the GlobalScot network.

Aberdeen-based RCP used the help of the GlobalScot network to open its first office in Singapore and is now working in conjunction with engineering giant AusGroup Singapore.

RCP hopes to diversify its product range, and now has agency agreements in Australia, Asia and the Middle East.

Livingstone-based subsea wireless communications specialists WFS Technologies used the help of the GlobalScot network to fuel their growth in key US and Brazilian markets.

Since tapping into our global network, the company has won its first contract in Latin America.

UNRIVALLED KNOWLEDGE OF OVERSEAS MARKETSAs well as providing introductions to industry, our GlobalScots, with their on-the-ground knowledge of overseas markets and priceless personal contacts, can provide valuable market insight and strategic advice.

Our GlobalScots are already at the top of their game and are willing and able to share their business knowledge and expertise.

They are chosen for their expertise and experience; their business savvy is instrumental to maintaining the GlobalScot reputation as a world-class resource for Scottish business.

GLOBALSCOT – UNLOCKING YOUR GROWTH POTENTIALFrom the age of adventurers such as Mungo Park and David Livingstone, to today’s business explorers, ambitious Scots have helped shape the modern world. Now, thanks to SE’s GlobalScot network, doing business abroad is just that little bit easier.

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18%

ASIA PACIFIC

EUROPE, MIDDLE EAST,RUSSIA & AFRICA

32%

UK

16%

AMERICAS

34%

Worldwide distribution of GlobalScots by region

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Supporting Scotland’s Oil & Gas Industry 55

GLENHEAD CASE STUDY

Sharon added: “We had been finding it quite hard to break into the Aberdeen energy market. But now we’ve started to win contracts with some of the big players and we’re exporting to places like Dubai and the Czech Republic. Things are beginning to happen.

“Brian gave us an insight into how we might be able to grow the business. He gave us a nudge in the right direction.

“He saw for himself that we could do it and that counts for so much. Having him vouch for us at SPX made all the difference.”

www.globalscot.com

54 Supporting Scotland’s Oil & Gas Industry

GLENHEAD CASE STUDY

The company, which offers specialist, precision engineering services, was on the Scottish Enterprise stand at the SPE Offshore Conference in Aberdeen when the team was introduced to GlobalScot Brian Edwards, of US-based SPX Corporation, a global manufacturing and industrial equipment supplier.

Brian, who grew up in Alloa, Clackmannanshire, has been a global player in the energy industry for a number of years, working both in Scotland and the Middle East with a number of big-name players.

Brian liked what he saw on the stand and, after talking at length with a Glenhead director, organised a visit to the firm’s Clydebank base, to see their work first hand.

FACTORY VISIT PAID-OFF“They we here for several hours into the evening chatting with us, finding out all about us, giving us pointers of ideas for potential markets and the people we could speak to,” Glenhead operations manager Sharon Colvan said.

Little did Sharon and the Glenhead team realise that from that initial meeting they would land a last-minute contract with SPX to manufacture turbine parts for a nuclear plant the firm was building in Taiwan.

The time Brian spent getting to know the Glenhead team was invaluable. He’d seen enough to personally recommend Glenhead to SPX’s procurement team.

SPX was racing to complete the project, and they needed impellors for the reactor. Fifteen years’ worth of work hung in the balance if it wasn’t completed by the deadline, so the job was high risk, high-profile, pressured and had to be completed to a very tight timescale.

RACE AGAINST TIME“We knew we had to pull out all the stops,” said Sharon. “We had our guys working through the night for six weeks. Our parts were right first time, every time, so SPX were really happy.”

“All you can do is give companies like this the opportunity,” said Brian. “In this case, Glenhead stepped up to the mark and we’ve gained another skilled supplier.”

GLOBALSCOT OPENS DOORS FOR GLENHEADWhen it came to breaking into the global oil and gas market, Clydebank-based Glenhead Engineering had a helping hand from a GlobalScot.

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Helpline: 0845 607 8787E-mail: [email protected]

www.scottish-enterprise.com