10th Oct 2019
Long Term Future of Nigg Oil Terminal Jetty Secured
Global Energy Group has reached agreement with Repsol Sinopec Resources UK Ltd to take over the long-term operation of the Nigg Oil Terminal jetty under a new lease with Crown Estates Scotland.
Since cessation of production from the Beatrice oil field, Repsol Sinopec has been exploring reuse options for the facilities at Nigg Oil Terminal, including the jetty. Under the agreed deal, the jetty will be operated as an extension to the Port of Nigg which has already established itself as a leading deep-water port servicing oil and gas, offshore renewables and the wider energy markets. The addition of berthage with even deeper water extends the capability of the Port and is already attracting interest from mobile drilling operators, EPC contractors and floating wind developers.
Repsol Sinopec will continue to operate the main oil terminal and to work towards final decommissioning of its facilities. Global Energy Group will become responsible for all decommissioning liabilities associated with the jetty.
Commenting on the deal, Roy MacGregor OBE, Global Energy Group’s Chairman, said: “I am delighted that we have reached this agreement with Repsol Sinopec. The Nigg Jetty is a valuable addition to our facilities. It not only increases our deep-water quayside capacity but enables us to consider bringing new business lines to the Port, creating further employment for the area.”
Nicolas Foucart, Chief Operating Officer, Repsol Sinopec said: "This is a clear example of a win-win situation: the transfer of the jetty will improve local industry capabilities to support emerging opportunities in the area, while Repsol Sinopec can focus its efforts on safely and efficiently decommissioning the terminal by reducing our operational footprint. We are pleased to have been able to reach this agreement and to know that it will help to sustain employment in the area for years to come."
Subject to regulatory and other approvals, the transfer is expected to be completed by the end of 2019.