Concerted push to attract European oil/gas companies to WA

16/3/95

The Western Australian Government is making a concerted push in Europe to attract companies associated with the oil and gas industry to locate to the State.

Commerce and Trade Minister Hendy Cowan is heading a top-level team which is visiting Norway and Scotland to meet companies involved in the offshore energy industry and to promote the advantages of WA as an operation base or service centre for the Asian region.

A special seminar was held last night in the Norwegian west coast town of Stavanger, and was attended by a select audience of industry representatives.

Stavanger is the 'oil capital' of Norway and is home to many specialist companies servicing the North Sea oilfields.

Earlier, in the Norwegian capital of Oslo, talks were held with senior executives of the giant Kvaerner group, which has extensive interests in offshore engineering and energy projects.  The company is considering enlarging its presence in Australia.

The Stavanger seminar was organised by the WA Department of Commerce and Trade and chaired by the State's Agent-General, Mr Bill Hassell.  It was addressed by speakers including Mr Cowan, department chief executive Bruce Sutherland and oil and gas industry representatives from WA and elsewhere.

Mr Cowan said there were exciting prospects for WA to enhance its status as a major oil and gas industry centre, with substantial economic benefits to the State.

He had been impressed by the level of interest shown in initial contacts in Norway.

His address to the seminar covered the competitive nature of the WA economy, industrial relations and labour market reforms, the streamlining of Government trading enterprises, more competitive energy costs and reduced rail freight costs.

"I was able to tell those present about WA's impressive growth rate and its strategic position in the rapidly expanding Asian and Indian Ocean regions," Mr Cowan said.

Mr Sutherland outlined the cost and location advantages of establishing oil and gas-related industries in WA - such as relatively cheap office space, property rentals, advanced telecommunications, education, research and development facilities and short flying times to Asia.

"One of our biggest selling points is the WA lifestyle, which should have great appeal to European personnel," he said.

Mr Sutherland outlined ways in which the Government could assist companies wanting to move into WA and invited executives to visit the State.

The seminar was also addressed by Mr Allan Bennett, Woodside Petroleum's head of well services, who gave an overview of the offshore energy situation in WA.

Another speaker was Mr Torjus Lundervall, financial manager of Coflexip-Stena, a French-based company currently establishing a flexible sub-sea pipe manufacturing plant in Fremantle.  He spoke of the company's experiences in setting up in WA.

Mr Martin Nordaas, business development manager for Norwegian offshore rig operator, Odfjell Engineering, gave a perspective from an international offshore company operating in Australia and which is considering setting up a new base in WA.

Mr Cowan said the seminar was a valuable exercise, adding that WA had to go out and sell its advantages if it hoped to attract major companies to the State.

Another seminar will be held on the other side of the North Sea, in Aberdeen, today (Thursday).

In the talks in Oslo with Kvaerner, the company showed interest in the case put forward by the WA delegation for the State to be a major service centre for the Asian region.

The diversified Kvaerner group, which has 168 worldwide companies, subsidiaries and joint venture operations is also interested in pulp and paper processing in the State.

"Face-to-face contacts with companies such as this are invaluable and are the first steps in forging stronger links," Mr Cowan said.

"They also bring home the point that WA operates in a very competitive marketplace when major international companies consider where to establish or consolidate regional operations in Asia."

Media contact:  Peter Jackson 222 9595