THE offshore oil and fuel sector might face “choppier waters than essential” below a no-deal Brexit, the director of the Oil and Gas Institute at Aberdeen's Robert Gordon University has warned.

Professor Paul de Leeuw stated the business had executed “a exceptional job” growing manufacturing within the North Sea between 2014 and 2018 within the face of assorted challenges.

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But he warned: “Without main new funding, manufacturing is forecast to say no from early subsequent decade onwards. Therefore it is going to be key to make sure ongoing funding through the Brexit transition window to safeguard
manufacturing and jobs from 2020 onwards.

“This would require pressing clarification across the ‘guidelines of the sport’ and potential transition preparations so traders might be assured about continued funding within the UK oil and fuel sector.”

De Leeuw advised the Daily Record some points of leaving the EU in March 2019 gained’t have a big impact on the business.

He defined: “Many of the EU directives, laws and different business good practices relating to grease and fuel have originated or have been developed in shut collaboration with the UK.

“Although it’ll take some appreciable time to untangle the complicated regulatory and coverage frameworks, the influence for the oil and fuel business is more likely to be modest.”

But he added: “By shifting from the present commerce preparations to the WTO’s framework within the no-deal Brexit scenario, the availability chain could possibly be uncovered to delays in shifting crucial items and providers – and probably to further tariffs – thereby growing the business’s price base and threat profile.”

An finish to freedom of motion could possibly be one other “problem”, with an estimated 10 per cent of the 170,000 individuals employed within the sector being non-UK residents.

De Leeuw stated: “With the business relying closely on entry to worldwide expertise and capabilities starting from hi-tech business jobs to crews on standby vessels, this can be one of many more difficult areas to be addressed.”

Source: www.insider.co.uk

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