Nigg Yard Finally Sold To Global Energy Group

19th October 2011

Global Energy Group completes historic purchase of Nigg yard.

Leading energy industry service company the Global Energy Group today (20th October, 2011) announced it had succeeded in its bid to buy Nigg yard.

The Highland Council welcomes the news that the Global Energy Group has successfully concluded its negotiations aimed at bringing the Nigg complex in East Ross fully back into productive use.

The Council has actively campaigned over recent years for the revival of industrial activity at the former oil fabrication site and prepared a development masterplan for the site in September 2009. This outlined its vision for how the site could be used as a multi-activity, multi-user industrial facility.

Convener Sandy Park said: "This is great news for the Highland economy and promises to bring much-needed and high quality jobs to the region. We wish Global Energy every success in unlocking the potential of the site. Success will significantly contribute to ensuring sustainable economic growth here within the Highlands but also for the overall Scottish economy."

Councillor Ian Ross, Chairman of the Council's Planning Environment and Development Committee, also welcomed the announcement.

He said: "It is a site capable of delivering an integrated manufacturing service for the offshore renewable energy industry, as well as ensuring that the Global Energy Group can continue to develop their services to the offshore oil and gas industry.

"The Council will now work with the Global Energy Group to bring the facility back into productive use at the earliest possible opportunity and currently are in the process of considering grant assistance towards the removal of derelict buildings and opening up of the site for redevelopment."

The purchase, completed in recent days, marks a major step forward for the group's ambitious plans to develop the 238-acre site, on the Cromarty Firth in the Scottish
Highlands, as a modern, multi-user facility serving a range of energy sectors, including oil and gas and renewables.

Global, which has head offices in Inverness and Aberdeen, was named preferred bidder for the famous North Sea fabrication yard in January. Since then the company has been involved in a detailed due diligence process with the facility's owners, US company KBR, and the Wakelyn Trust, which also owns part of the site.

Following the successful completion of that process, delighted chairman Roy MacGregor described the purchase as a "hugely exciting development for the company, the Highlands and Scotland."

Mr MacGregor, whose career in the energy industry began at Nigg during the heydays of North Sea oil platform fabrication in the 1970s, said: "I am absolutely thrilled to be able to announce the conclusion of our purchase of Nigg yard today. It has been a long and complicated due diligence process and I would like to thank KBR, the Wakelyn Trust, their respective agents being Bidwells and DTZ, the legal teams, consultants and our own people for all their work in bringing this fantastic facility into Highland ownership.

We have also been extremely busy exploring commercial opportunities for Nigg. The levels of interest expressed to us about the yard, its strategic location and its potential for further development have absolutely underlined our own firm conviction that this facility is really special. From the outset our vision has always been to develop the site as a multiple-user, multi-sector facility serving the needs of the energy industry. Having completed this vital first stage of purchasing the site, we are confident we will soon be in a position to make further announcements both on our detailed strategy for Nigg and on significant commercial opportunities there."

During the 1970s, Nigg yard, which boasts one of the largest dry docks in Europe, had a workforce of around 5,000, building huge structures for the emerging oil and gas industry. The natural protection from the elements provided by the headland Sutors at the entrance to he Cromarty Firth allows the facility and its deep-water anchorage 365-days-a-year access.

Global's immediate priority is to secure their main fabrication business, Isleburn, onto a long term lease at the yard, that will provide them with further opportunities within their varied energy sector marketplace. Isleburn has been a tenant at Nigg for the past 9 years.

Mr MacGregor continued: This is a hugely exciting time for Global, but also for the Highlands and Scotland. We are confident that, in time, new job opportunities and work for the local supply chain in and around the Cromarty Firth and beyond will follow on from this historic day. We are aware of the opportunities opening up to us within various sectors of the energy industry through the purchase of this wonderful facility and we appreciate the importance ensuring we maximise them fully for the common good. We do see opportunities in the short term in oil and gas, but will also look to the emerging offshore wind, wave and tidal markets, given our advantageous geographical position and our expertise in supporting clients in those sectors. We all recognise the importance of renewable energy and reducing the carbon footprint, but must never lose sight of the growing opportunities within the massive oil and g as marketplace."

Funding support has been provided by Lloyds Bank Corporate Markets in Aberdeen and Relationship Director, Andrew Robertson, commented: "We are delighted to be supporting Roy MacGregor and his team in this purchase. It is great to see this world
class facility come back into greater use and allow the Global Energy Group to compete for opportunities within the international oil and gas and emerging renewables marketplace. There is no doubt the local economy will benefit greatly from this development today and provide new employment opportunities for years to come."

A spokesperson for The Wakelyn Trust said, "The Wakelyn Trust is delighted at this outcome. Global Energy is firmly rooted in the Highlands and has a strong track record in the renewables and offshore construction sector. The Trustees were persuaded that its plans were likely to make the most of this unique Scottish asset for the benefit of the Highlands. It has taken a lot of time and effort to secure this outcome but securing the right outcome often takes time and the Trustees now look forward to the beginning of a new and exciting chapter for the Nigg fabrication yard."

About Global Energy Group
Global Energy Group is a Scottish success story. Founded in 2005 and with head offices in Aberdeen and Inverness, the company is now one of Scotland's leading employers, a major contributor to the national economy and a highly successful international business.

Six years of organic growth and strategic acquisitions have seen the wholly Scottish-owned company's turnover increase to almost £230million and its world-wide workforce rise to over 3,800 people.

Headline facts about the Global Energy Group from an economic impact survey, by independent experts, focussing on its operations in the 2009/10 financial year:

• One of the largest fabricators in the UK by turnover and scale of facilities.
• A major exporter of bespoke hardware to West Africa and the Gulf of Mexico.
• UK market leader for servicing mobile offshore drilling rigs.
• £100million gross value added (GVA) generated (more than 80% in the Scottish Highlands).
• Ranked top UK private company for overseas sales growth.
• Fastest growing profit and turnover of any private Scottish company.
• 3,409 people directly employed across Scotland.
• 5,136 jobs across Scotland (including indirect employment) over 75% high value jobs (including management and engineering as well as skilled trades such as welders, pipefitters, platers, electricians and mechanical fitters).

Awards:
• 2011 Scottish Council for Development and Industry, Chairman's Award for outstanding achievement.
• 2010 Scottish Council for Development and Industry, Clydesdale Bank Award for Best International Business.
• 2010 Sunday Times HSBC International Track - 100 - 1st place.
• 2010 Sunday Times PricewaterhouseCoopers Profit Track
100 - best performing Scottish company (18th in UK).
• 2009 Sunday Times Virgin fast Track 100 - best performing Scottish company (29th in UK).