NORTH SEA ENERGY SERVICES: Changing NSES Secures Solid Future

Aberdeen businesses in the energy space have faced tough times in recent years. Confusion and uncertainty about the future of the North Sea have piled the pressure on those operating in Europe’s oil capital. Further fuelling the challenge is the change in UK government. What is the plan for the North Sea in these times of energy transition amidst energy security concerns?

The new government has made it clear that new exploration licenses will be a thing of the past and the North Sea will be completely reshaped. The focus will switch to renewable energy opportunities, and, over generations, a just transition will occur, taking green instead of black energy from the North Sea while replacing jobs with modern, technology-based opportunities.

Currently, estimates suggest that more than 120,000 people are still directly or indirectly employed thanks to the oil and gas industry in Aberdeen (and thousands more when including the wider energy sector). Within the uncertainties and obscurities, there are clearly opportunities for those that know how to find them.

“We are looking to diversify into other sectors, and that is looking very promising,” says Scott MacAngus, Managing Director at North Sea Energy Services (NSES). The firm, based in Bridge of Don, is a specialist engineering firm providing fabrication, welding, and offshore support services for clients operating rigs and production platforms in the North Sea.

INDUSTRY LEADER

Founded in 2017 with a focus on pipework and structural steel for the offshore market, the company has grown quickly to become recognised as an industry leader. Guaranteed quality and timely deliveries, all prepared with extreme attention to detail on site in Aberdeen, have helped NSES to thrive.

MacAngus is an experienced operator in this industry. After working for some of the biggest names in the business he joined NSES to help take the company to the next level. From apprentice welder in the early 90s across corporate positions for NOV, Wood, Petrofac, and the Global Energy Group, MacAngus has gained valuable experience in growth and HSEQ attainment. When he became MD at the end of 2022, he went about reorganising the business to set a pathway for expansion.

“I saw that we needed to de-merge from another company that we were tied to because there were too many shared services. We did that, and we have now been running as a completely separate and independent company for 18 months, with our own HSEQ certification. It has been amazing and we are now in a position to move into a bigger facility. We are planning to move in the second quarter of 2025 as we are now struggling more than ever for space.”

But his plans for nurturing the company do not stop with growth and expansion. MacAngus sees the future of NSES – historically a business based on the success of fossil fuels – in the renewable energy industry. In Aberdeen, many are choosing a hybrid strategy, hoping to take advantage of the large investments going into offshore wind, onshore infrastructure, and refurbishment and decommissioning.

“We are looking to get into the renewable sector. We have had various conversations with local companies, and we have had conversations with companies overseas,” he confirms. “We are in touch with the Chamber of Commerce in Aberdeen and we are trying to get signed up to various renewable courses to bring us more of an understanding of the requirements. Obviously, the renewable side, for us, is new but it’s not something we can’t do. It’s massive, and it is the way we want to go. We are talking to customers about carbon capture and how we can support that. Again, we have great feedback and we are on the approved vendor list of three big renewable companies. It is only a matter of time before we are fabricating for this sector. I like to think by Q4 2024 we will be providing support for these companies. Renewables is the company’s focus right now, it’s the space we need to get into, and we are putting a lot of effort into that.”

Utilising existing skills and infrastructure, NSES is perfectly positioned to grow in the renewables space. UK oil and gas fields in the North Sea are in terminal decline and in 2023 the basin produced just 34 million tonnes of oil – the lowest figure since the establishment of production in the 70s. Finding a new direction is not only good for the environment, it is critical for business.

REALLY COMPETITIVE

Core in the NSES service offering is fabrication and welding of structural steel and all types of piping components. The company provides offshore services for trades including welders and pipefitters. An impressive shop for exotic pipework – stainless steel, cunifer, super duplex and duplex – as well as structural is complemented by a separate facility for carbon steel piping. Expertise in engineering of structural steel and steel piping is required for effective building of renewable energy projects. As the big names begin to rollout their projects, they only look for Aberdeen’s best. This is why MacAngus has placed such an emphasis on HSEQ accreditation, ISO certification, punctual delivery, and a strong project portfolio. Recent successes have seen the company deliver topside clamps and supports, subsea skids, anti-vibration clamps, deck hatches, flowhead packages, hydraulic power unit frames, steel louvres, and much more.

“In Aberdeen, we are a top fabrication shop but there are certainly others,” he explains. “We feel as though we have a lot of competition when it comes to topside fabrication. We find that, during off-peak in Dec, Feb, and Jan, it can be really competitive with other fabricators.”

He says that rates drop drastically with rivals trying to get work in to keep their businesses ticking over. However, in peak times, all shops are busy and there is enough work for all to thrive. “We really only compete aggressively at the start of the year. We try to drive product quality – and our clients will agree. We are all about on time delivery and we have spent a lot of money on equipment to make ourselves more efficient. We have various new welding machines, and we have various new machines for prepping pipe to try and speed the process up. We are constantly trying to spend money for the right reasons – to give us a better delivery and quicker fabrication.”

NSES is also a big investor in its supply chain, ensuring quality and certainty throughout. Not happy to settle for ‘good enough’, MacAngus insists on partnerships with suppliers rather than arm’s length contracts. He wants local connections wherever possible, and this helps with the fundamentals of high-quality service delivery for clients.

“We use argon, propane, oxygen etc; we have a lot of gas on site – it is required for welding – and we use local suppliers for that,” he says. “We go through a lot of consumables and PPE. We also invest in local partners for flanges, steel, and pipe. Sometimes we do have to go further afield, into Europe, depending on the materials needed. Logistics, NDT testing, coatings etc are all vital for us and we have tight relationships with a number of local companies. These are fundamental in our delivery and we intentionally form close relationships so that we can work together, in partnership, and make things that bit easier.”

TAKING THE PAIN AWAY

The restructuring of the business, a focus on sustainable expansion, and a constant drive to reinforce its status as a home for reliable craftsmen backed by leading technology continues to fuel the reputation of NSES. By making things easy for clients, the company does have to work hard to ride the waves but MacAngus is ambitious and positive about the future, despite uncertainty on longevity in the North Sea. 

“We are a very good turnkey fabricator and we have had clients for a long time,” he says. “We get repeat work and that is a very good sign for any business. We promote ourselves as a top end fabricator, but you pay for that service. Sometimes we cost more than others, but our clients pay for product quality, on time delivery, and the passion that our people have for these projects.

“We want to help our clients and we try to take the pain away from them – and there is a lot of pain right now with shut downs happening. That does put us in front of others as we genuinely want to deliver for people.

“Aberdeen is a niche, cutthroat market. You have to be careful with everything you do and every relationship you make as you have to make a profit. Right now, everybody is so busy so we can look to take work from those with the best engineering drawings and those who have a good history and reputation,” he adds.

When the company completes its move to our new premises, and as it engages further on deployment in the renewable space, this is not a business looking over the shoulder or into the short-term. NSES is thinking about long-term, realistic, sustainable growth that will see it employ more local people and contribute further to the local economy.

“Our next steps are certainly to continue with our growth from a new space, taking on new industry sectors, and building our reputation even further,” MacAngus concludes.