OGN: Scottish independence could jeopardise UKCS future

Equipment

September 17, 2014

With the Scottish Independence referendum looming, the England-based engineering and construction company reveals its preference.

Offshore Group Newcastle Limited, better known as OGN Group, a company providing engineering and construction services to the UK oil and gas sector, has launched a statement supporting the pro-union ‘Better Together’ campaign.

The company has expressed a belief that a ‘Yes’ vote will cause considerable uncertainty for many UK citizens as well the oil and gas market, “uncertainty which will impact on the levels of investment and a slowdown in production on the UK Continental Shelf (UKCS).”

OGN has also warned that Scottish independence may jeopardise both long term and short term investment slowing down further development and production as investors perceive extra risk both now and in the future as well as driving up costs in the procurement process for Scottish industry.

David Edwards, Chief Executive of OGN Group, said: “Uncertainty has always been one of the biggest threats to a successful UK oil & gas industry. Investment could grind to a halt while tax, decommissioning, legal and boundary issues are debated, which will not only impact on the potential tax revenues, but also lead to a slowdown on projects that will affect jobs in the wider supply chain.

“The oil & gas sector is a UK wide industry and creating a new border will transform inter-union trade into international transactions, which will increase costs to Scottish industry at a time when exploration and recovery of the remaining resources is already becoming more expensive.”

OGN recently completed the first central North Sea platform to be built at a single construction yard in the UK for at least 25 years. The platform is located at the North Sea Forties Field, 110 miles off Aberdeen, Scotland.

The referendum on whether Scotland should become independent will take place on Thursday, 18 September 2014, and four million people who live and are registered to vote in Scotland will be allowed to vote. All residents of Scotland of the age 16 can vote. The referendum question will be “Should Scotland be an independent country?” Voters can only answer yes or no.
#indyref Tweets

[mappress]

Press Release, September 17, 2014