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Getting a share of the Nordic oil and gas boom

Industry Insights

Getting a share of the Nordic oil and gas boom

Learn how your organisation can get a share of the Nordic oil and gas boom with Achilles JQS.

North Sea oil and gas is a tale of two halves. On the one hand, there’s the UK, where the industry is stabilising from the economic downturn. On the other there’s the booming Nordic area, where Norway in particular is reaping the rewards of innovative policies. How can suppliers take advantage of the Nordic opportunity?

One startling fact sums up the remarkable success of the Nordic oil and gas industry.

In 2016, the UK’s North Sea oil and gas actually cost the country’s government £396 million (net of tax payments). By contrast, just a year later, Norway was expecting to receive around £15.6 billion in net revenues from its own oil and gas activities in the North Sea over the previous 12 months.

This enormous difference highlights the importance of Norway’s oil and gas industry to its relatively small population of 5.35 million people. It is punching massively above its weight – not only is it the country’s largest industry, responsible for around half the country’s total exports, it also makes Norway the world’s third largest producer of gas and eighth largest producer of crude oil.

Production continues to rise

Over 50 years after the birth of the industry, it is estimated that only 45% of the recoverable resources (Norwegian Petroleum) on the country’s continental shelf have so far been produced and sold (for a collective total of around US$1 trillion).

During 2017, total production rose for the fourth year in a row to about 236 million Sm³ oil equivalent (o.e.), and gas sales set a new record high. Looking ahead, the 4.07 million barrels of o.e. produced in 2018 is expected to grow to 4.41 million by 2022.

But, even with such high levels of production, reserves are still substantial enough for activity levels to remain high for the next half-century.

Constant innovation

Not surprisingly, the country’s government has created an environment in which the industry can flourish. This is driven by a positive tax regime, a proactive national directorate and a focus on encouraging constant innovation to advance exploration and technology.

Given facts like these, it’s also no surprise the Nordic opportunity is extremely interesting to suppliers keen to uncover and convert new business opportunities in such a vibrant, successful and well-supported business area.

Increasing visibility

To do so, supplier first need to increase their visibility among key buyers in the industry. With over 28 years’ experience in the Nordic Oil and Gas industry, around 3,600 suppliers are currently using Achilles JQS the leading industry initiative for pre-qualifying suppliers in the Nordic industry.

This gives Achilles JQS high levels of credibility and trust among the 110 buying organisations – mainly from Norway and Denmark – that use Achilles JQS to get the best and most complete view of the supplier market.

In fact, many of these buyers, including oil companies and large engineering, procurement and construction (EPC) businesses, use Achilles JQS as their primary means of finding suppliers for their projects.

Not only that, many also make it a requirement that suppliers must be registered, verified and compliant on Achilles JQS before being considered for projects.

Compliance assured

There is a very important reason for this. Just by being on the system, suppliers demonstrate that they have been through a thorough, regularly renewed registration process that ensures they are fully compliant with all appropriate regulation.

That alone is a major factor in reducing supplier risk for buyers.

Added to that is the ease with which suppliers can give buyers access to information on their company and its capabilities.

Suppliers can ensure that all business-critical supporting documentation, including certificates and policies, is in a single secure location.

Become a contender

Being a pre-qualified supplier on Achilles JQS is more than just an opportunity to tell the world about your company. Being there gives you immediate credibility and enables you to rapidly bypass the barriers that many buyers have in place to non-JQS qualified suppliers.

So talk to Achilles, and we’ll help you quickly become a contender in the Nordic oil and gas arena.

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