£37M development for Nigg Energy Park

16th May 2013

Continuing its successful growth journey, the Global Energy Group today announced it has placed a formal planning application with the Highland Council and Marine Scotland for permission to develop the South Quay at Nigg Energy Park. When complete, the development will significantly increase further opportunities for the park offering over 1,000 metres of available quayside for customers in the offshore oil and gas sector providing essential deep-water access, as well as supporting the demand for large laydown areas and fabrication facilities for the renewables industry.

With turnover breaching the £330 million threshold and increased sales of 46% reported for the year ending 31st March, the profile of the group changed dramatically in 2013. Regional complexities also entered the mix and new shareholders came into play, but Nigg has played a huge part in this growth and the company sees further expansion in supporting customers within these sectors as the demand for access to deep-water quayside and facilities continues.

The £37 million planned investment by the Group follows more than £14 million already invested in refurbishing and upgrading the site during the past 18 months of ownership. Works to date include complete upgrade to the existing facilities and demolition of many old and dilapidated buildings, the recycling of some 32,000 tonnes of materials which was re-used on site, along with the landscaping of certain areas; some 3,000 metres of surface filter drains have been installed and new 50 tonne and 200 tonne bollards have been positioned along the dock wall. The dock basin floor has also been given a new concrete base, along with the construction of a tarmac road and walkways to run across the main thoroughfare of the site, creating a modern multi-user facility.

Global Chairman, Roy MacGregor explained their reasons for moving forward with this essential development and commented, “We have worked really hard to market Nigg Energy Park and invested heavily in bringing the facilities up to a high standard to allow us to meet both existing and future demands from the energy industry.

With a strong order book for the dry dock facility, it became clear to us that sea access to the site would continue to be limited and would constrain further growth. The existing South Quay is shallow and in poor condition so there is an urgent need to repair this and at the same time create more space. The creation of what will be over 1,000 metres of deep-water quayside space will not only allow us the opportunity to attract more business and increase our workforce, but also maximise any opportunities arising in the renewables sector. We have consulted widely with the public agencies and local communities to ensure everyone has had the opportunity to share their views and are pleased to report very positive feedback. If we can secure planning approval this summer, we would look to commence work this autumn with a completion date by the summer of 2015.”

Global’s achievements at Nigg and plans for the yard’s future reflect the company’s continuing success and ambitious future development strategy. The Group has already attracted more than £100 million of new business to the Highland economy since acquiring the site.

About the Global Energy Group

The Global Energy Group is an award-winning energy sector service company whose proposition is to deliver enhanced value, reduced risk and innovative solutions to energy companies and their contractors.

Founded in 2005, and headquartered in Inverness, the success of the company reflects its clear strategy of growth delivered through strategic acquisitions, organic development and internationalisation that has led to the Group employing in excess of 4,000 personnel worldwide.

With significant presence in Europe, and portfolios fast developing in the Asia Pacific and Americas regions, our business model incorporates a collaboration of brands, offering niche services or turnkey solutions in the energy markets.

Since securing the former oil fabrication yard at Nigg, the next phase of Global’s expansion plans for the aptly named Nigg Energy Park are focussed on developing further quayside facilities to serve the oil and gas sector as well as the future needs of the renewables industry. Rather than replicate Nigg’s past, we are regenerating the yard to follow a more sustainable model in the future, catering for a balanced mix of contracts to be undertaken covering the marine, subsea, topside, nuclear and renewable sectors.

The Group’s commitment to continued growth attracted investment from Japanese multinational Mitsui & Co Ltd, a partner that will help the Group realise their growth ambitions and replicate their model internationally.