Chinese firm moves to tap Scottish oil and gas industry

A Chinese company that specializes in geosciences and reservoir technology has opened its first base in Scotland at Heriot Watt University Research Park, a move that is expected to boost the country's embattled oil and gas industry.

IRes-Geo Technology Ltd says it has opened the base to expand its global business and tap into the exploration and development of Scotland's oil and gas sector. It says it will initially create 10 jobs.

"We've set up a new office in Edinburgh to support our North Sea and global expansion plans," says Huang Yi, chairman and founder of iRes-Geo Technology. "To date, we've created three positions, two of which are high-value jobs, and we are actively recruiting in Scotland to take our total staffing level to five this year."

Huang, a former reservoir geophysicist with Statoil, a Norwegian oil and gas multinational, and a graduate of Heriot Watt University, says the company has also established an office in Scotland because of its strength in the subsurface engineering market.

China is listed in the top 10 countries with most growth opportunities in the oil and gas industry over the next five years, according to Scottish Development International, an agency that helps Scottish companies with overseas trade.

With the dramatic drop in oil prices, BP Plc and other international oil companies have shed jobs in North Sea operations in and around the former energy boomtown of Aberdeen, and analysts say the impact is spreading to the wider economy.

The Scottish government recently announced it will offer oil and gas workers who lost their jobs in the downturn the opportunity to be trained as teachers as part of its 12 million pound ($17 million; 15.2 million euro) Transition Training Fund.

Scottish Development International, which is working with iRes-Geo Technology to offer guidance and support to help bring investment to Scotland, says the Chinese company's move forges a strong link with Scotland.

"We will continue to work intensively with their management team through our account management portfolio to support its ambitious growth plans in Scotland," says David Rennie, international sector head at Scottish Development International. "The Chinese market is extremely important to Scotland.

"At the end of March, we hosted 15 companies attending the China International Petroleum and Petrochemical Exhibition, where we showcased Scotland's world-class oil and gas expertise."

zhengxin@chinadaily.com.cn