Support oil and gas R&D

Baker Hughes invests £31m in subsea centre

Baker Hughes General Electric is investing £31 million into a new research and development facility in the north of Scotland for the oil and gas industry.

The investment will focus on subsea technology and on driving efficient ways of working to reduce costs and improve productivity.

It is supported by a £4.9 million package from the Scottish government, announced at a manufacturing conference today.

It will fund infrastructure improvements, enabling the company to upgrade and expand its Montrose operations, creating a new manufacturing ‘campus’.

Subsea equipment designed and manufactured at the facility will support activity worldwide.

R&D activities will focus on bringing new technologies to market that reduce costs, enhance productivity and lower the carbon footprint of oil and gas operations in some of the world’s most demanding offshore and onshore environments.

Unveiling the government’s support for the project during the Scottish Manufacturing Advisory Service (SMAS) conference in Cumbernauld, First Minister Nicola Sturgeon said:  “As one of the most advanced centres of its type in the world, it will underline our international reputation for oil and gas innovation, developing the products and services the industry needs for the future.”

Graham Gillies, for BHGE, said: “We are investing in our facilities globally and our collaborative approach with Scottish Enterprise is a strong example of how we are supporting a more sustainable future for this industry.

“Subsea technology is undoubtedly one of the UK’s greatest export success stories, with industry-leading technology and solutions being designed and manufactured here, and installed across basins worldwide.

“The downturn has been immensely tough for all industry players and the world we operate in has fundamentally changed.

“We have to challenge ourselves to find more efficient, smarter ways to reduce cost and increase productivity, driving greater value for our customers.

“We also need to develop the skills of our existing workforce, and bring on the future generations to ensure we are well-positioned and ready to adopt the new ways of working demanded by a pioneering digital manufacturing environment.”

Paul Lewis, managing director, Scottish Enterprise, added: “Scotland’s oil and gas industry, and in-particular the subsea sector, is in the vanguard of global industrial development in this field and BHGE is at the forefront.”

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