A World Class Offshore Sector
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OFFSHORE TEES VALLEY A World Class Offshore Sector Tees Valley is one of the biggest Tees Valley is renowned for its industrial centre, Wage rates are about 92% of the national average, centres for offshore fabrication, which is the heart and soul of the economy. and this, combined with added financial incentives TEES VALLEY. The region has an established history and expertise available on sites and premises, makes Tees Valley oil and gas and subsea supply in business and industry and has a world-class a great location for new investment or expansion. chain in the UK. With around 3,500 reputation for delivering large-scale projects companies involved directly or across key sectors, such as oil & gas, advanced Major projects which have recently commenced manufacturing & engineering, chemicals and their civil engineering works include MGT Power INVEST WITH indirectly in the industry, the area processing, renewables, logistics and automotive. in Redcar, who are constructing a £650m renewable is a key contributor to the national energy plant, as well as announcements by Sirius economy and has significantly The deep water ports of Teesport and Hartlepool Minerals and Australian firm Peak Resources to contributed to the oil platforms Port, make Tees Valley ideally positioned for establish mineral processing plants in the region. CONFIDENCE. servicing the North Sea and offshore industries. These three investments alone represent well over and heavy engineering for the The area offers expert offshore fabrication facilities £1 billion of new investment, clearly demonstrating North Sea. This expertise is still as well as prime land that is ripe for large-scale the confidence companies have in Tees Valley and working heavily in oil and gas investment. The Enterprise Zone sites provide a clear indication of our global reputation for access to a range of facilities, as well as an excellent successful manufacturing. and is also transitioning into supply chain and they also offer financial incentives renewable energy, particularly for potential investors, such as Enhanced Capital These companies have chosen Tees Valley because offshore wind. Allowances. of the logistics and industrial infrastructure, supply chain, skills and support that is available to secure But Tees Valley’s main advantage over other UK and ensure the successful operation of our major and global locations is its low operating costs. industries. Rents and rates in Tees Valley are about half of most major cities. 2 | Offshore Tees Valley Offshore Tees Valley | 3 Tees Valley has one of the UK’s greatest concentrations of companies operating in the offshore oil and gas, subsea, decommissioning and offshore wind sectors. The supply chain is made up of over 400 direct and 3,000 indirect companies that employ over 4,250 people and includes industry leading names, including CATS, TEES VALLEY ConocoPhillips, Able, Amec Foster Wheeler, Jacobs and Heerema. OIL AND GAS DECOMMISSIONING OFFSHORE Tees Valley has many advantages to offer FABRICATION the offshore decommissioning sector. With With its long history of offshore engineering, substantial available quayside and water depths Tees Valley has many expert fabrication companies in ranging from 9-11m, the region offers a ready- the offshore sector. It is also one of the UK’s largest made solution to the offshore industry. SECTOR cluster of subsea cabling and trenching companies, plus excellent offshore fabrication facilities and port sites. OFFSHORE WIND Offshore wind presents a wide range of exciting opportunities in Tees Valley and is an area SUBSEA with real potential for growth in the region. Major subsea service providers are resident There is already a supply chain of over 400 in Tees Valley, which they chose for its prime companies and Tees Valley has been awarded geographic location and support services. UK Government CORE status as a Centre for This has created a hub of expertise operating Offshore Renewable Engineering. globally in the renewables, oil and gas and telecommunications sectors. 4 | Offshore Tees Valley Offshore Tees Valley | 5 OIL AND GAS IN Deep water ports Tees Valley is first choice for Shell’s on the Tees and at TEES VALLEY Hartlepool Port cover Brent Delta Decommissioning over 1000 acres of land and are an integral The North Sea oil and gas industry marked a significant moment when, in May 2017, Tees Valley is a key centre for the oil and element of the wider the Brent Delta topside was towed to Tees Valley to be decommissioned. Over the gas sector in North East England and the industrial area. next 10 months, the Brent Delta will be dismantled with over 97% of the structure UK and has significantly contributed to being recycled. the oil platforms and heavy engineering for the North Sea. The region has one Shell’s Brent oil field, which lies to the north east To facilitate the arrival of the topside, Able UK of the UK’s greatest concentrations of of the Shetland Isles, is one of the largest in the had a new bespoke quay designed and constructed. companies operating in the oil and gas country and, at its peak, produced more than half The new quay is the strongest in Europe and can a million barrels of oil a day. The field commenced accommodate the largest structure that the industry, and one of the UK’s largest decommissioning in 2011 and one of its four large Pioneering Spirit can handle. cluster of subsea cabling and trenching platforms, Delta, has now made its way to Hartlepool companies, making it one of the most in Tees Valley to be dismantled. The quay, and its associated developments, represents complete and integrated supply chains an investment of £28m. This large investment will Deep water ports on the Tees and at Hartlepool Port The decommissioning of the 24,200 tonne Brent provide benefits that will extend beyond the Shell in the country. cover over 1000 acres of land and are an integral Delta topside is the largest single piece North Brent project. The new facilities are unique in the UK element of the wider industrial area. Both have Sea decommissioning project undertaken to date. and put Able and Tees Valley in a very strong position The area is ideally located on the North East excellent transport links by road, rail and air and The topside is the heaviest single piece ever lifted to secure ongoing business in a field of activity that coast and there is prime land available for offer lock-free access to the North Sea. They also offshore and it was lifted and transported by a new is set to increase significantly, with more than 100 investment that offers access to the North provide excellent warehousing, logistics and supply purpose built vessel, the Pioneering Spirit. platforms set to be completely or partially removed Sea and offshore industries. chain expertise. over the next decade in UK and Norwegian waters. The Pioneering Spirit, developed by Dutch Heavy To bring the first major project to Tees Valley is a huge Lift specialists Allseas, is a new £2.5bn vessel and coup for the area. is the world’s biggest ship. It is equal to six Boeing 757 planes in length, has a deck space the size of six football pitches and can lift up to 48,000 tonnes. 6 | Offshore Tees Valley Offshore Tees Valley | 7 OFFSHORE WIND Hornsea Project One Boosts Tees Valley DONG Energy’s Hornsea Project One will be the world’s largest offshore wind farm and the first to exceed 1GW capacity. The project OPPORTUNITIES is located 120km off the Yorkshire Coast and will meet the electricity needs of well over one million UK homes and Tees Valley based companies are playing a vital role in its development. Offshore wind presents a wide range of exciting opportunities in Tees Valley offering real potential for JDR Cables has won the contract In November 2016 it was also growth, and the area is already the home of major players that will see the company design and announced that Darlington-based Deep in the industry, such as EDF Energy, Offshore Structures manufacture 242km of array cables, Ocean had won a multi-million pound covering two thirds of the total wind contract to transport and install the Britain and MPI Offshore. The extensive facilities, such farm capacity. This represents the cables for the project. Deep Ocean as a deep-water port complex, coupled with the existing largest array cable award in JDR’s have invested heavily in world-class infrastructure and availability of large areas of industrial history and they will manufacture the installation and trenching technology. land, make Tees Valley an exciting investment opportunity cables at their state-of-the-art facility in Hartlepool. Hornsea Project One is a pioneering for offshore wind companies and their supply chain. project for the UK and for the electricity Billingham-based Offshore Structures sector. When built, it will be comfortably There is an increasing demand to build renewable energy assets, in particular Britain has won the contract to the world’s largest offshore wind farm. offshore wind, and Tees Valley has been awarded UK Government CORE manufacture 56 transition pieces that For contracts of this size to be awarded status as a Centre for Offshore Renewable Engineering. This is in recognition will link the monopole foundation wind to Tees Valley based companies shows of the area’s existing port infrastructure, including deep-water access, turbines with the towers. The facility considerable confidence in the area to available skills and logistics and the presence of an experienced supply has been fully upgraded since 2015 deliver large-scale offshore wind projects. chain, which will enable rapid growth in the offshore wind sector. and employs close to 200 people. The region benefits from good access to supply chains and from 10GW of wind farm development within easy reach of port sites.