An Aberdeen-based offshore engineering company is to create a new centre of excellence for testing emerging technologies in the subsea sector.

Balmoral Offshore Engineering is creating the open access hyperbaric pressure testing facility for the oil and gas supply chain, and specifically for the subsea sector.

Announcing the project ahead of the National Economic Forum in Inverness, First Minister Nicola Sturgeon said the specialist facility will bring "huge benefits in developing and supporting emerging technologies in the oil and gas industry".

"Scotland is a world leader in subsea engineering, already accounting for around 15 per cent of the £50 billion global subsea market and as our Subsea Engineering Action plan has outlined, we want to build on this, supporting companies to grow and ensure we have the class-leading test and research infrastructure needed to meet future needs of a sector that already employs 38,000 in Scotland," she said.

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"The Energy Jobs Taskforce has made a strong commitment to supporting higher levels of innovation within the sector and this is a great example of this.

"While it is clear the oil and gas sector faces ongoing challenges, this investment continues to underline the many opportunities that remain in Scotland's world-class supply chain.

"The fundamentals of Scotland's economy are strong. We want to create the best environment for doing business anywhere in the UK – because we know that the success of Scotland's businesses underpins the prosperity and wellbeing of every community in the country."

The project is being supported with a £1 million research and development grant from Scottish Enterprise, with the company investing £1.5m. The centre will be available for large companies and SMEs to use.

In addition, the project will more than double the capacity of large-scale open access pressure testing vessels from two vessels to five in Scotland.

Jim Milne CBE, Chairman and Managing Director of Balmoral Group, added: "We are delighted to have secured this investment from Scottish Enterprise, an organisation we have been collaborating successfully with for many years.

"The establishment of Europe's leading hyperbaric test centre in Aberdeen further strengthens the city's position as a centre of excellence for the global subsea industry while also opening up opportunities to work with the renewables and defence sectors.

"With the offshore industry demanding ever-increasing product testing, and as a company with innovation at its core, we are pleased to offer additional capacity for 'open access' third party testing."

(LM/MH)