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airline keeps trade hopes afloat Andrew Mernin finds out why the region's thriving trade links with Norway will not be drowned by the loss of DFDS's Newcastle to Bergen ferry service. WHEN the Vikings pillaged our shoreline thousands of years ago, they would arrive empty-handed and leave heavily laden with untold riches. Many moons later however, fortunes were reversed as a ferry company started bringing oil-rich Norwegians to the North East ready to unload their wealth in our tourism, retail and entertainment sectors. That was until earlier this month, when Danish ferry operator DFDS announced that the Newcastle to eastern Norway service will be forced to walk the plank amid crippling fuel costs and low customer demand. The news will be a huge blow to the region's hospitality industry when the route finally drops anchor this September. It will also see 270 onboard and 70 shoreline workers from Denmark, Norway and the North East lose their jobs. But against the rising tide of doom and gloom surrounding our trade links with Norway, business leaders in the region have dismissed suggestions the announcement will drown our thriving relationship with Scandinavia. The key to this optimism is the new Eastern Airways flight from Newcastle to Stavanger - which has proved popular since its launch last month. The service is currently daily, but the gap left by the axing of the ferry route could lead to additional airborne services in the near future. "Absolutely there could be an increase in the number of flights (from the North East to Norway)," says Mike Pedersen, of the Newcastle-based trade group the Norwegian Collaboration Centre. "If you have a company you are going to go to Norway for a day or a couple of days of business, whereas the ship took 22 hours. From a tourism point of view the ending of the ferry route is not so good, but for a business point of view there is Eastern Airways." Meanwhile, Eastern Airways has hinted that the carrier could increase its Newcastle schedule. A spokesperson for the airline said: "Since launching our non-stop daily service to Stavanger from Newcastle, bookings have been very encouraging. If the cancellation of the ferry service results in demand exceeding our forecasts, we will review our position and look at additional services." As if to highlight the strength of our trade ties with Norway in these uncertain times, business development group NOF Energy will today take 17 UK companies - almost half from the North East - to the land of the midnight sun for a raft of potentially lucrative meetings. Organiser Joanne Leng said: "We are quite actively supporting Norwegian markets, and the main objective of the trip is to introduce companies to potential clients in Norway and to promote the North East as a place to do business and as an oil and gas service centre." Among those on the trip will be Newcastle-headquartered cable manufacturer CMP Products. "It's just a scouting mission but we are going to see if we can get our business in that market," said European sales manager Kathleen Kearns. "We produce electrical products for the oil and gas sector and there isn’t anyone who does this in Norway." Also eastward bound today will be Salem Tube. Like CMP, the company believes it has the potential to corner the Norwegian market because it has no rivals in the Scandinavian country. Managing director Howard Ions said: "Norway's a new market for us although we have dealt with one or two companies there in the past. There are a lot of oil and gas companies out there, so it’s just a question of locating them." rig design company to create up to 200 oil jobs UP to 200 skilled jobs are to be created in the region's booming oil sector with the arrival of a rig design company. US firm RDS is opening an office at Wynyard Business Park, Stockton, which will create 50 new jobs by the end of the year and more than 130 jobs in the longer term. This is RDS’s third office in the UK - it also has offices in Aberdeen and London - and follows a rapid increase in offshore engineering project work won by the company over the last 12 months. Peter Brackenborough, RDS’s head of engineering, said: "RDS has experienced an unprecedented growth in demand for its services in recent months, to the extent that we now employ about 700 people in our offices in London, Aberdeen, Stavanger, Bergen (Norway) and Baku (Azerbaijan), which represents an 83% increase in our total workforce since 2005. Our forward order book is extremely healthy, to the extent that we anticipate the need for another 200 people by 2009/2010, which we are looking to fulfil with this new office in Stockton. This region is renowned for its engineering skills base, which we hope to tap into, attracting people who live in the locality or who have perhaps moved away for work reasons and would like to return." Ian Williams, director of business and industry for One NorthEast, which has provided the company with a £1.3m grant to come to the region, said: "The North East is fast developing a reputation as a UK hub for offshore oil and gas engineering and I am delighted that we have been able to attract a company of RDS's calibre to Wynyard Business Park." RDS, a subsidiary of KCA DEUTAG, has signed a 10-year lease on the new 13,000 sq ft office in the Lion Court building at Wynyard. Yesterday we reported there are 1,730 current job vacancies in the North East’s booming oil and gas sector and the region’s firms say a shortage of skilled staff may soon hinder their growth. RDS is initially looking for NVQ or degree qualified engineers and designers in the disciplines of structural, mechanical, electrical, instrumentation, piping, and HVAC, as well as cost, planning, safety and drilling operations engineers. There will also be a number of managerial and administrative positions to be filled. Matt Johnson, development manager of Wynyard Park Ltd, the company that owns the 700-acre business park said: "The creation of new skilled jobs is a welcome boost and is a reflection of the quality of workforce that is on offer in this area." northern land of opportunity NORWAY is one of the world’s best-kept secrets. Free from the confines of the European Union, this fiercely independent country is full of surprises. Who would have guessed that it spawned The Scream, one of the world's most iconic paintings that kick-started a worldwide movement in expressionist art? Or that the coastal town of Stavanger is home to one of Europe’s strongest energy clusters? Even though the UK is Norway's largest export market, the Brits have yet to exploit the full potential of Viking land. While Norway exported around £18.2bn worth of goods to the UK in 2006 (nine tenths in oil and gas), the amount traded in the opposite direction amounted to just £2.3bn. Regionally, the North-east exported just £158m of goods to Norway in 2007, compared with £1.3bn to The Netherlands, £722m to France and £577m to Italy. Norwegians believe that the country’s high living costs have deterred potential investors from setting up a base there. And with the price of a chocolate bar or a pint of beer almost treble that on Teesside you can understand why. Says Stig Feyling, chief executive of Bjorge, a technology supplier to the oil and gas market: "There is excellent synergy between Norway and the North-east of England but some UK citizens don’t want to be employed here. They prefer to work as a contractor because of our taxation system and also because they don’t want to move their families over here." Others argue that the country is ripe for investment and that the North-east is well placed to capitalise, particularly on Norway’s lofty position as the world’s fifth largest oil exporter. George Rafferty, chief executive of NOF Energy, believes Teesside possesses the requisite skills that Norwegian operators cannot find on their own, sparsely populated shores. He says: "The situation is crying out for joint venture arrangements between Norway and North-east companies. The Norwegians work to demanding standards but this region is used to achieving these standards." Organisations here and there are laying the groundwork for an infrastructure that will facilitate this collaboration and boost trade between Teesside and Norway. Earlier this month, Eastern Airways launched a daily service from Newcastle to Stavanger, the town at the heart of the country’s oil and offshore industries. And the airline hasn't ruled out operating a flight from Durham Tees Valley Airport to Norway in the future. In addition, One NorthEast has teamed up with development agency Greater Stavanger and the Norwegian Collaboration Centre to work out how the North-east can take advantage of one of Norway’s most pressing economic problems. - and one that resonates with skills-strapped Tees. Per capita income last year was around US $83,922, but with a population of only 4.6m and unemployment of 2.1%, a lack of staff is hindering growth plans. To solve their jobs deficit, Norway is turning its attention to the North-east labour market. Stig Feyling has embarked on an ambitious drive to recruit 100 employees this year and is eyeing up Teesside to help him achieve this target. Meanwhile, Leif Roger Torgersen, managing director of recruitment firm Pelikan Personell, is seeking to hire out workers from the North-east to Norwegian oil and gas companies. He says: "Currently, we hire people from Poland and although they have a good work ethic, communication is a problem as some of them struggle with the language. If you are an engineer in North-east England, you can be an engineer in Norway. Our country may be expensive, but salaries are high." Robin Davison, managing director of Stockton-based Wolviston - which supplies workers to the Norwegian offshore industry - believes wage structures in Norway go some way to offsetting the high living costs. He says: "The workers we supply are the highest wage earners on our books. The Norwegians will pay for quality labour." As well as forging a reputation in the oil, gas and offshore industries, Norway also has strengths in telecommunications, biotechnology and renewable energy, with particular expertise in hydro-power. It's a far cry from the early 20th Century when the country relied heavily on its fishing and associated industries. But the global oil and gas boom represents Teesside's best chance of doing business with it. Patrick Kendell, inward investment manager at One NorthEast believes attracting Norwegian firms to Teesside could create up to 500 new highly-skilled jobs in the next three to four years. Some of Norway’s most influential companies have already kick-started this trend. Stockton plays host to Norwegian-owned Aker Solutions E&C Ltd, which employs around 700 staff and works with oil and gas specialist Darlington-based Whessoe. Other potential investors in Tees have already checked out the region's capabilities, with around 30 Norwegian companies attending the Rediscover North East England conference in Newcastle last month. NOF is keen to build on this momentum and will lead a market visit to Norway during the first week in June. Whether Norway's increasing wealth will eventually win over the sceptics who have been scared off by the expensive Viking lifestyle remains to be seen. But Norwegians and Teessiders are at least united this time... in their belief that the best is yet to come. re-discover north east england
The original idea was provided by Mike Pedersen whose role in the Norwegian Collaboration Centre is to increase activities between the two regions. Every picture tells a story and a video is even better - click here to view the video (or right click here to save). Thanks to One NorthEast, Greater Stavanger, NOF Energy, and Oilinfo. Next year the event will be held in Stavanger, with a focus on the North East of England becoming the supply chain for the Norwegian Oil and Gas Industry with the most to offer. influx of norwegian firms could bring 500 new jobs AN influx of Norwegian companies to the North East on the back of the global oil and gas boom could create up to 500 new highly-skilled jobs in the region in the next three years. Norwegian logistics experts J Martens UK has just opened a base in Cramlington, Northumberland, and an announcement on a further two companies coming to the region is expected within weeks. There are now more than 20 Norwegian companies in the North East and the figure is set to grow in the next few years, creating hundreds of skilled jobs. With full employment in Norway and Aberdeen, the global oil and gas boom means Norwegian energy companies are increasingly turning their sights to the North East. They are desperate to recruit skilled staff and to tap into the expertise of the region’s 50-plus companies with links to the offshore sector. Magne Eide, marketing director of J Martens UK, said: "We think the North East will become more and more important for us, as many Norwegian companies plan to establish themselves in the area. Newcastle is quite a nice point for us and for many of the other Norwegian companies. It is a central point for trade across the UK and there is a deep pool of skilled labour." Earlier this week Eastern Airways launched a daily service from Newcastle to Stavanger, the Norwegian town at the centre of the country's oil sector. A party from regional development agency One NorthEast was one of the first to use the service in a bid to encourage further trade ties. Patrick Kendell, inward investment manager at ONE, said: "The North East and Norway have very similar business cultures, with mature supply chains and technologically advanced markets in the oil and gas sectors. Norway has a prosperous oil and gas future ahead, with exploration still at a high and many projects coming on stream providing opportunities in the supply chain for businesses in the North East." He believes the lack of skilled staff is hindering Norwegian growth plans. "This is a real opportunity for the North East. Norwegian companies are looking to set up in the region. This could help create between 250 and 500 jobs in the next three to four years. These jobs will be across the board, from engineers to IT support and they are all highly-skilled jobs." Earlier this year a delegation of 40 Norwegian companies arrived in the region for the first time in decades to seek new business opportunities with North East companies. Mike Pedersen, of the Norwegian Collaboration Centre, has been working on attracting Norwegian companies to the region with Seadrill Engineering - who brought 60 jobs to Blyth last year - being one of its major successes. He said he expected to announce the arrival of a further two Norwegian companies in the region in the next few weeks. Boom in region SOARING oil prices and a voracious global demand for energy is helping fuel a new North East oil boom which is expected to create thousands of jobs and bring millions of pounds into the regional economy. George Rafferty, chief executive of NOF Energy, said: "This is a new dawn for the oil industry in the North East. We are witnessing a boom and the region is playing a major part in this global boom. North East firms and experts have been involved in all major global explorations, bar China, in recent years. We are a world-leading centre for subsea exploration and with demand set to remain high, we expect to see a doubling in the number of jobs in the region to around 10,000." Most global oil exploration is now concentrated on underwater reserves. The revenues generated by the North East’s subsea sector since 2004 are: £141m (2004), £232m (2005) and £298m (2006). norway air link planned A NEW daily direct flight between Newcastle and Stavanger in Norway is set to be launched amid increasing business ties between the two regions. Eastern Airways, which currently flies passengers between the two airports via Aberdeen, is expected to announce the new direct daily flight within a month. The move will cut journey times in half to around an hour and will be a welcome boost to the North East's oil and gas supply sector, which is enjoying a surge in demand from Norwegian clients. The news came yesterday as delegates gathered at the Rediscover North East England conference - an event at the Gateshead Hilton Hotel aimed at encouraging trade links between the region and the booming Norwegian oil and gas sector. Speaking at yesterday's event, Eastern Airways sales manager Don Yule said an announcement over the new daily service was imminent. He said: "We have firmly established that there’s a market in Newcastle and we would very much like a direct service. Today’s event confirms our market research that there is demand here. There is a very good chance that we will announce the new flight within a month." If the direct flight does get the go-ahead it could play a major role in helping North East businesses exploit the Norweigian oil and gas boom. Yesterday's conference also saw the announcement that 100 new jobs would be created in Hartlepool at a new cable factory in the town. An in-depth report on the region's oil and gas sector. New dawn should double our oil jobs SURGING oil prices and the voracious global demand for energy is helping fuel a new North East oil boom which is expected to create thousands of jobs and bring millions of pounds into the regional economy. The price of oil has trebled in the past few years and it is currently being traded at about $100 a barrel. With oil companies pouring cash into exploiting new reserves, the expertise of North East companies in subsea exploration is helping the region develop a reputation as a world leader. One of the region's leading oil and gas experts, George Rafferty of NOF Energy, formerly the Northern Offshore Federation, said: "This is a new dawn for the oil industry in the North East. We are witnessing a boom and the region is playing a major part in this global boom. North East firms and experts have been involved in all major global explorations, bar China, in recent years. We are a world-leading centre for subsea exploration and with demand set to remain high, we expect to see a doubling in the number of jobs in the region." With most of the so-called easy oil now extracted, the challenge the oil industry faces is reaching the more difficult reserves. This is where North East companies - such as Wellstream and Duco - are leading the field. Mr Rafferty said: "This is not the sunset industry that many predicted a few years ago. There is no doubt that oil will provide the main focus to meet the world’s need for energy over the coming years. The quest in finding the oil means new technologies and methods are being developed." "The skills of the companies who have worked in the harsh environment of the North Sea are now valued across the globe. The subsea sector in the North East grew by 30% last year and will continue at that pace for many years to come. The opportunities are immense." Experts say 50 North East firms are currently involved in the subsea oil sector in the region, employing 5,000 people and contributing £500m to the local economy. One NorthEast’s energy and environment manager Ray Thompson said: "There is opportunity for the North East to become a world leader in some of the new technology. In 10 years' time the number of people employed in this sector could easily have doubled to 10,000." There are even signs the North East is beginning to emerge as a rival to the UK oil capital of Aberdeen. David Pridden, chief executive of industry body Subsea UK, at Aberdeen, recently praised the development of the North East oil and gas industry. "You can see what Newcastle is doing. And it’s growing all the time in the North East. I think you have a larger workforce there to tap into opportunities. I'm being controversial, but I think there's also an entrepreneurial spirit there that is absent in Aberdeen." More evidence of this emergence comes next month with a visit to the region of more than 30 Norwegian companies armed with cheque books. It will be the first visit of its kind in 30 years. The subsea sector in the North East grew 30% last year and will go on at that pace for many years tyne is beating aberdeen in subsea sector North East companies are world leaders in subsea oil exploration and make a significant contribution to the regional economy. Peter McCusker reports. Over 70% of the 350 oil rigs currently operating in the North Sea were made here in the North East. During the construction boom in the 70, 80s and 90s, the banks of the Tyne and Tees resonated with the sounds of cranes, angle grinders and welding machines constructing these giant structures. These machines are now beginning to make a din once more. Late last month it emerged that Haverton Hill shipyard near Billingham was reopening with a £150m contract to build two drilling rigs, creating 800 new jobs. The deal between the Tees Alliance Group and SeaDragon Offshore will see the first rig delivered by 2010. And late last week George Rafferty, chief executive of the Northern Offshore Federation (NOF Energy) revealed he had been contacted over the possibility of a construction project on the banks of the Tyne. McNulty Offshore, one of the UK’s leading oil and gas fabricators, is based in Hebburn and Dave Skentelbery, boss of A&P Tyne, said he was following developments in the oil and gas industry closely with a view to possibly securing work. Rafferty, chief executive of NOF Energy, which represents scores of North East energy companies said: "Many of the foreign yards are full and the focus for some fabrication companies is shifting back to the North East. Just this morning I had an inquiry from a company wanting to know about platform construction possibilities on the Tyne." However, the River Tyne is still making a significant contribution to the oil and gas industry in what is known as the subsea sector. Two of the world’s premier subsea companies - Duco and Wellstream - sit cheek by jowl at Walker. And another leading North East firm, The Engineering Business, is carrying out subsea work at the former Amec yard at Wallsend. There is also the possibility of a new centre for excellence for the oil and gas industry, jointly funded by the public and private sectors, coming to the river. The region’s universities have been world leaders in marine engineering since the days of the shipbuilding industry and this is still the case. Rafferty added: "There is a good chance we will be able to establish a centre of excellence for the subsea sector in the region. We are looking at the banks of the Tyne. The universities are fully supportive of the work being done in the sector and we recently had talks with Newcastle University about tailoring courses to meet the needs of our members. Next month we are hosting a delegation from Venezuela and in April there is a visit from Norwegians. There is no doubt the North East is recognised as a world leader in the field of subsea exploration." He believes the North East is now outrunning Aberdeen in this sector - and it is a view which is gaining prominence elsewhere. Mr Rafferty added: "There is a grudging acknowledgement in Aberdeen of the abilities of the North East companies in this field." Guy Adams, of oil industry publication Oilinfo, which recently established a base in Newcastle as opposed to Aberdeen, said: "The North East has a greater chance to grab an even greater share of the oil market. There is an interest in the North East from Norway which hasn’t been seen since the 1970s. We already have two leading Norwegian companies based in the region and more will follow. Norway is the main oil producer, per square acre in the world, and for the first time we have 35 companies from Norway coming to the region next month actively looking for business partners. The North East has the engineering expertise and the banks of the Tyne could be ideal for further development." Ray Thompson, One NorthEast's energy and environment manager, said: "The rising price of oil means the oil companies are cash rich. There is now a good economic case to do further exploration and development. The whole oil sector is growing significantly and the opportunities are huge. There is a worldwide boom and the energy market is going off the graph. There is a huge market across the globe for the things that the North East does well." Mr Thompson believes the skilled workforce needed to support the sector's development still exists in the region's workforce, although some of these workers may now be overseas. The primary areas for future oil explorations are West Africa, Brazil, Mexico and Azerbaijan. There is a huge market across the globe for the things that the North East does well. bridging the gap A new initiative aims to bridge the gap between the offshore competencies of North East England, and markets of South West Norway. This new conference was initiated by UK organisation One North East and Norway's Oilinfo, and is being arranged with NOF Energy and Narec as partners. It is regarded a golden opportunity both for North East companies looking to exploit the Norwegian oil and gas boom, and for the attending Norwegian companies - many of which have bulging order books. On 1 April, they will all be arriving in Newcastle to attend the three-day event, named "Rediscover North East England" which is aimed at showcasing the latter region's strengths.
As companies look to maximise returns on reserves in the North Sea and Northern Europe, the North East region of England is emerging, or re-emerging, as the UK hub for offshore activity. "This conference is an opportunity to demonstrate the region's capacity to support a thriving offshore industry. We have the regional engineering skills for these companies to exploit and the businesses to help support a lucrative offshore manufacturing supply chain," One NorthEast director of business and industry, Ian Williams said. "The Norwegians are proven experts in making the most of the oil and gas opportunities in Europe. It is up to us to demonstrate that the North East can play a key role in supporting them to realise these opportunities. He also welcomed Oilinfo, which has set up base on Tyneside, to North East England. "Having a globally recognised industry publisher in the region further boosts the North East's reputation in the offshore sector." Just an hour away "I would remind all North East companies that Norway, where there are companies needing your skills and services, is just an hour away," Oilinfo’s marketing director, Oistein Tomte, said. "From 1 to 3 April, Norwegian companies will be here to find out what the region can offer. Major names in Norwegian oil and gas, energy and engineering sectors will be at the conference, so this is a huge commercial opportunity, he emphasised, adding: "We are delighted with our new base in Newcastle. It will help us maintain our core focus on North Sea activities but as the world gets smaller, we are increasingly covering the entire globe."
In the last financial year 2006-07, it created 17.110 new jobs in the region, created or attracted 3.432 new businesses, helped 15.851 businesses to improve their performance and attracted £246.8m worth of investment to regenerate deprived areas, more than half of this investment secured from the private sector.
60 new jobs on the way A world-leading oil and gas drilling contractor is creating 60 new jobs in Northumberland as it looks to the North-East to help it capitalise on an unprecedented boom in the industry. Norwegian-owned Seadrill Engineering has just opened a satellite office in Eddie Ferguson House, Blyth, home of the New and Renewable Energy Centre (NaREC). Sixteen employees will initially support the company's activities in its Aberdeen, Bergen and Stavanger offices, with job numbers forecast to rise to 60 within three years as the company looks to recruit specialist engineers from the North-East labour market. Seadrill Engineering has extensive contracts with major global companies such as Shell, Statoil and BP, to upgrade oil rig drilling technology, allowing the companies to tap into harder-to-reach pockets of oil and gas in the North Sea. One NorthEast has backed the project with a £200,000 Selective Finance for Investment Grant. The regional development agency's inward investment and aftercare team worked with Seadrill and NaREC to identify suitable space in NaREC's facilities as the ideal location to establish its first presence in England. Chris Levett, Seadrill Engineering managing director, said: "It was a choice between Blyth and other international locations, but we decided on Blyth because of its location, accessibility, the quality of these facilities at Eddie Ferguson House and the pool of resources in the North-East related to our industry. This office gives us the capacity to do the extra work our clients want us to do. If we are to grow, we have to get the resources in place and over the next three to five years this is where we intend to build up our main engineering support base." Seadrill Engineering will recruit graduates and North-East workers with oil and gas sector experience, some of which may be working overseas. It will need electrical, structural and mechanical engineering and design specialists to work from its Blyth base. The Blyth office will work to help Seadrill Engineering customers update ageing technology on oil rigs with new state-of-the-art automation, allowing access to lucrative oil and gas reserves previously out of reach. Seadrill Engineering is the engineering arm of offshore services firm Seadrill - based in Stavanger with an annual turnover of £500m and 4,400 staff worldwide. "The oil and gas industry is in the midst of an unprecedented boom at the moment, the oil companies just can't get it out of the ground quick enough," said Mr Levett. "The help of NaREC and One NorthEast has been of great assistance to me in presenting my business case to my management for this operation to go ahead. I was able to say that the authorities in the North-East are there to encourage us not only with words but by putting their money where their mouths are." Richard Marr, finance director at NaREC, said: "With a skilled workforce and a wealth of resources already in the region, it makes sense for oil and gas companies to look at the North-East as a key part of the future for new and emerging energy technologies. With investment from companies such as Seadrill, we are building the beginnings of an energy cluster in south-east Northumberland, focusing on the great potential already here in Blyth." Simon Goon, OneNorthEast head of business development and international relations, said: "This investment is as a result of the investment and aftercare team's long-established Norwegian activities and is a real joint effort between One NorthEast, NaREC and regional partners. It is a real coup for the region to secure a company of Seadrill Engineering's stature with the calibre of jobs it will bring. "Mike Pedersen, who works in the Norwegian market place for OneNorthEast, made the initial contact with the firm through the region's Norwegian Collaboration Centre and its soft landing base for companies looking to invest in the North-East." "it all started in newcastle" - the fronter story fronter hits the jackpot thanks to the norway contributes to education changes in uk
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