By Selina Williams
LONDON--The U.K. government is looking to establish a national
program to retrain ex-military personnel to work in the country's
oil and gas industry as part of efforts to address a skills
shortage in a sector that is vital for the U.K. economy.
The move could help boost employment at a time when the U.K. is
teetering on the brink of its third recession in five years. It
will also help provide skilled personnel for an industry that is on
the cusp of a resurgence as companies ramp up investment following
a recent raft of tax breaks and other incentives.
The U.K.'s oil and gas industry employs over 400,000 people, is
vital for the country's energy security and for the economy via
revenues from tax receipts. Last year, the oil and gas sector
contributed GBP11.5 billion to the Treasury--more than any other
sector.
Filling the skills gap is seen as one of the biggest challenges
facing the oil and gas industry, especially for small and
medium-sized enterprises, the department of business, innovation
and skills said in a statement in its long-term oil and gas
strategy.
The industry expects it will require an additional 15,000 staff
over the next four to five years across a range of disciplines.
Under one initiative, the government is looking to target the
skills shortage of mid-level career engineers. Ex-military
personnel often have the skills the oil and gas industry looks for
and have successfully transitioned into the sector, the government
said.
Oil and gas industry skills body OPITO is already developing
schemes to re-train people with skills in other areas, such as the
armed forces, and has already developed a training program in
partnership with oilfield services company Schlumberger AG (SLB,
SLBS.VI), OPITO's policy affairs director Darah Zahran said.
"The industry has 10,000 jobs needing to be filled in the next
three to five years," Zahran said, adding that OPITO was looking
ahead to maintain the longevity of the industry.
As part of its oil and gas strategy, the government is also
working on maintaining a fiscal regime that encourages investment
and innovation. This includes the guarantees on tax relief for
decommissioning old oil and gas facilities that were announced in
last week's budget.
The strategy also seeks to develop the supply chain, encourage
more technological advancement through research and development as
well as developing the financial services' sector to address the
challenges of access to finance.
"The oil and gas industrial strategy is the start of a real plan
of action owned by industry and government. It is a strategy that
all sides are committed to, so that future decades of investment
and growth can be maintained in the North Sea," Business Secretary
Vince Cable said ahead of the launch of the strategy.
Last month, industry body Oil & Gas UK said companies were
planning investments totaling around GBP100 billion on the U.K.
Continental Shelf. It is expected to rise to a record GBP14 billion
this year, up from GBP11.4 billion in 2012.
--Cassie Werber contributed to this story.
Write to Selina Williams at selina.williams@wsj.com; Twitter:
@selinawilliams3
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