Oil trader Portland has announced the introduction of a new company, aimed at businesses serving the offshore oil & gas sector.
Their service offers companies financial protection when the price of crude oil falls.
Lower crude oil prices have had a devastating effect on the Aberdeen region in recent times.
Good businesses have suffered lost revenues, staff redundancies and mounting losses because of factors beyond their control.
However, Portland’s unique Oil Price Protection service aims to reduce this impact on local businesses by offering compensatory payments during periods of commercial stress. In return for an annual premium as low as £500, businesses will be protected against downward movements in the oil price and the payments received will enable those businesses to maintain employment levels, pay suppliers on time or just preserve “business as usual” status.
Managing Director James Spencer, said: “As an oil industry professional of over 20 years’ experience, I know how challenging the crash in crude oil prices has been to the Aberdeen economy. Anyone connected to the oil & gas industry has felt this keenly, whether they manufacture equipment, run a local hotel or send supplies to the rigs.
“There are so many businesses connected in some way to oil & gas in this region and our price protection mechanism is designed to work with them all.”