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Diversification paying off for north-east firm NorSea UK

Grain operations at NorSea UK's site in Peterhead.

Logistics firm NorSea UK has reached a 30-vessel milestone after launching a diversification strategy for its operation at Peterhead.

The Aberdeen-based company started to move away from being wholly focused on the oil and gas market during 2020.

It welcomed its first grain and coal cargo vessels to its Blue Toon facilities late last year.

The firm has continued to explore new market opportunities to make the most of a multimillion-pound investment in its Peterhead base.

Still a ‘steady flow’ for oil and gas

Activity at the multi-purpose Merchant Quay facility has now seen more than 30 coal and grain vessels visiting.

This is in addition to an ongoing and steady flow of oil and gas project vessels operating in the North Sea.

A further broadening of the maritime business mix is anticipated, including through its partnership with new Aberdeen company Phoenix Decom.

Joint venture

NorSea UK and Phoenix are working together on a project to deliver Scotland’s first dedicated subsea decommissioning “hub”.

Launched earlier this year, joint venture NorSea Decom is solely concerned with the safe and compliant management of decommissioned subsea infrastructure and waste logistics.

The move is expected to deliver more business for NorSea UK’s large Peterhead base, which has benefited from recent investment worth more than £2 million.

Tapping into new markets

Celebrating the 30-vessel diversification milestone in the Buchan town, Karen Russell, UK country manager for NorSea UK’s Norwegian parent, said: “It is important to our sustainability that we continue to tap into new markets.”

A key part of this is to maximise the potential of the firm’s Peterhead facilities, whilst using a local supply chain to “fulfil our long-term commitment to the town, she added.

NorSea UK manager Karen Russell

NorSea UK provides supply bases and integrated logistics solutions to the energy and other industries.

It operates from its headquarters in Altens Industrial Estate, Aberdeen, and the Merchants and Smith quays in Peterhead, where it has had a presence since 2014 and now boasts laydown and processing areas totalling about 350,000sq ft.

Facilities on Smith Quay include a weather-protected, deepwater berth and quayside laydown and marshalling areas totalling around 177,600sq ft.

On Merchants Quay, NorSea has nearly 150 yards of berthing and more than 172,000sq ft of external storage and quayside laydown capability.

NorSea UK’s base in Peterhead.

Last year, NorSea UK said it 
had enjoyed steady growth since its creation in 
2014.

A regionalisation strategy partnering the subsidiary with NorSea Denmark is expected to lead to more opportunities.

The wider NorSea group – based in Tananger, near Stavanger – has supply bases in Norway, Denmark, Canada and Australia, as well as the UK. The 56-year-old group employs nearly 800 people globally.

The majority shareholder, with 74%, is global maritime industry group Wilhelmsen, with Eidesvik Eiendomsinvest, Simon Mokster Eiendom and management owning the rest.

Headcount varies in the UK, depending on projects being worked on at any given time.