"We have been working on this concept for a while and now it's finally come together; the timing is excellent as this country's energy sector embarks on major programs of exploration and development over the next few years," Souness told EnergyReview.Net in New Plymouth today.

"While the fabrication of major subsea items, such as pipelines and towers, may still have to go offshore, New Zealand industry already has the capability and expertise to do a lot of the other work, particularly front end engineering and design.

"This cluster offers a unique opportunity for the various companies to pool their own skills and services to win a greater share of work, primarily in New Zealand, though we are also looking across the Tasman."

Souness said the genesis of the oil and gas cluster was the successful attendance of nine companies at an Australian oil and gas conference/exhibition held in Perth last year.

"We worked together, shared costs, and presented a united front for what we could do; as a result at least two of the firms won some work in Western Australia.

"That was our toe in the water and I believe this oil and gas cluster has real potential for the collective approach to marketing, market intelligence, etcetera."

He said the kiwi technical support industry had often struggled to achieve that critical mass necessary to extend its geographical influence, more easily manage its business away from the boom-bust cycles of the past, and utilise synergies to improve efficiencies and effectiveness.

Souness added that he and representatives of the closely-aligned Venture Taranaki economic development agency would be among the hundreds of participants at next week's NZ petroleum conference in Auckland, which was shaping up to be a key event for 2004.

The oil and gas cluster was officially launched by New Plymouth Mayor Peter Tennent last night and already has over 30 participants nationwide.