Union Outrage Over Rosebank Oil Field’s Offshore Vessel Construction in Dubai
Trade unions have expressed outrage at the decision by Norwegian developers of Scotland’s Rosebank oil field to have its main offshore vessel constructed in Dubai. The RMT’s Mick Lynch and the STUC’s Roz Foyer condemned the move, calling it a “shocking betrayal of Scotland’s workers.” The vessel in question is the Floating Production Storage and Offloading (FPSO) platform, which is being built nearly 4000 miles away in the Middle East.
Equinor, the Norwegian state-owned oil giant behind the Rosebank project off the coast of Shetland, awarded the contract to Altera Infrastructure to deploy and operate the FPSO for at least nine years. This decision has sparked criticism as it overlooks the expertise of the North Sea workforce in Scotland, with construction jobs being outsourced overseas.
The project, touted as Scotland’s “largest offshore project in a generation,” has raised concerns over the lack of job creation opportunities at home. Union leaders have called for public ownership of energy infrastructure in Scotland and the UK to prevent such outsourcing of contracts. Mick Lynch from the RMT union emphasized the need to secure offshore jobs for local communities, rather than seeing contracts awarded to foreign state-owned companies.
Aker Solutions, commissioned by Altera to upgrade the vessel, is partly owned by the Norwegian state. The construction at Drydocks World shipyard in Dubai, owned by the UAE state, has further fueled calls for more interventionist approaches by the UK and Scottish governments to retain such contracts domestically.
The STUC’s Roz Foyer highlighted the urgency for a green industrial strategy that prioritizes public equity stakes in energy projects, emphasizing the importance of supporting the domestic supply chain. The ongoing legal challenges faced by the Rosebank scheme, coupled with the merger of Equinor’s UK operations with Shell, have added to the uncertainties surrounding the project.
As the debate continues, calls for greater accountability in awarding energy contracts and ensuring local job opportunities remain at the forefront of discussions within the energy sector.
Insights and Summary:
The outsourcing of the construction of the main offshore vessel for Scotland’s Rosebank oil field to Dubai has sparked fury among trade unions, highlighting concerns over job opportunities for Scottish workers. The decision to overlook local expertise in the North Sea workforce in favor of overseas construction has reignited calls for public ownership of energy infrastructure to safeguard domestic job creation. The need for a robust green industrial strategy that prioritizes local employment and supports the domestic supply chain has been emphasized by union leaders. The ongoing legal uncertainties surrounding the Rosebank project and its merger with Shell point to the complexities facing the energy sector in balancing commercial decisions with local interests.