A study into the inspection, repair and maintenance (IRM) of North Sea oil rigs was published today (Friday 11th Nov), revealing that the market is worth a potential £250 million each year for the next three to five years.

The study reviewed the IRM sector for mobile drilling units in the North Sea, in order to forecast future business opportunities for supply chain companies in the Highlands and Islands and rest of the UK which provide specialist services, such as engineering, blasting, cleaning, certification and logistics.

The report suggests that UK yards can "reasonably expect to compete for about £130 million" of this work annually, representing a significant economic opportunity primarily for the Cromarty Firth and north-east and east of England.

The report sets out the following recommendations:

• The appointment of a senior industry liaison consultant to improve two-way communications between the local supply chain and target IRM decision makers.
• Developing a better intelligence by keeping an up-to-date database on rig surveys.
• Engaging all relevant local suppliers to best present the local supply chain and communicate competencies to customers through targeted information and an improved website.
• Improving co-ordination amongst suppliers and investigating joint venture contracting - this may also encourage the development of long-term relationships and framework agreements with rig owners.
• Developing better measures of bid opportunities and success ratios and building this into management reporting. This would be disseminated through the local supply chain.

Highlands and Islands Enterprise (HIE) and the DTI's energy industry development team co-funded the study, which was undertaken by Avayl Engineering of Inverness.

Bob Kass, HIE's head of key industries, said: "The findings of this report reveal a significant potential income for companies that can offer these specialist IRM services. We will now look to implement the recommendations of the report in order to ensure that companies in the Highlands and Islands are in the best position to secure as much as possible of this £250 million investment in the oil industry." 

Jim Campbell, head of the energy resources and development unit at DTI, launched the IRM report at the Marriott Hotel, Inverness, which was attended by around 70 businesses.

Link to study