IN this week's SME Focus an enterprising chemistry expert explains how he created a business in which he could use his talents when no suitable jobs were available and echoes calls for banks to make it easier for firms to access funding.

Name: Jim Murray

Age: 62

What is your business called? Alchemy Oilfield Services Limited.

Where is it based? Inverurie, Aberdeenshire.

What does it produce, what services does it offer?

Alchemy primarily specialises in gels and sealing materials for offshore and onshore oil and gas industry applications.

We provide a range of gels and gel pigs for pipeline cleaning, debris removal, dewatering, de-oiling, chemical treatment separation and spool filling for sea-water ingress prevention.

Prevention of sea water ingress into pipelines is especially advised where high chrome steel pipes are being used for pipeline construction and where oilfield gas, which is acidic in nature, will be flowing through the pipe after installation.

If there is a presence of chloride ions from sea water and a low pH from gas then these conditions will attack the pipeline from the inside and cause a significant decrease in the lifetime of the pipeline.

As these systems are often installed and fitted together subsea, it is more than likely that the system will contact sea water. Hence the pipes are filled with a suitable Gel onshore before being dropped into position on the sea bed where they will be joined together to form the pipeline.

Alchemy manufacture and supply high specification sealing products for wellheads, valve and pipeline applications and provide a solution based response to pipeline emergencies for remediation of difficult and sometimes safety critical applications.

To whom does it sell?

Oil and Gas service companies specialised in pipeline operations, commissioning and testing worldwide.

What is its turnover? £750,000.

How many employees? Six.

When was it formed? March 2005.

Why did you take the plunge?

Over the many years I have been employed in the industry I have attained rather specialist skills in pipeline operations, but as no suitable positions were available in service company establishments I decided to try and make a go of an enterprise myself and to offer specialist chemistry in a focused direction.

What were you doing before you took the plunge?

I was previously employed in a wider role in oilfield chemical disciplines, particularly in the development and supply of production chemicals for the oil and gas Industry.

Production chemicals are used to ensure steady crude oil production rates. Modern production methods and environmental constraints require chemical solutions.

I was interested in chemistry from secondary school where I had inspiring teachers one of whom (formerly head of chemistry now retired) I am still in touch with. I enjoyed the application of systems to particular problems rather than pure research.

I carried this on after university and developed some new techniques by transfer of technology while working as a technician in the Department of Medicine at Aberdeen University (ARI) on haemostasis (blood coagulation and venous thrombosis) with the academic staff. I moved to the oil industry and continued to enjoy using my experience and knowledge to apply chemicals and systems to solving problems in a more commercial application of chemistry to oil production.

How did you raise the start-up funding?

It was all personally funded. At the time we were unable to locate the funding we required, and we felt our time was better spent on sales activity.

What was your biggest break?

Really there were two. Not long after I set up Alchemy I was awarded a large Gel contract for Technip, North Sea. This Gel was used as a barrier to prevent the ingress of sea water into a new pipeline being laid.

A couple of years later Alchemy was awarded a very large sealing contract for a North Sea Operator.

This involved supplying a specially formulated sealing material to restore the integrity of valves that were previously leaking badly.

What was your worst moment?

I ran out of funds temporarily in June 2006 as I wasn't paid by an oil operator and their contractor for 180 days.

What do you most enjoy about running the business?

The very varied workload. Almost every job/enquiry requires specific detail in terms of chemistry or application, innovation and successful outcomes.

What do you least enjoy? Administration and the effort that is required to go through to try to access project funding from banks only to find no funding is offered. I have found over the years it can be easier and quicker to go and get the result using our own resources.

What are your ambitions for the firm?

Growth in chemical innovation which is applied in more areas worldwide. Like Chemical Sciences Scotland (which links the industry with the academic sector and public agencies) we feel our sector has a growing global role to play.

What are your top priorities?

In equal importance – people (staff and clients), projects (sales), innovations, environmental considerations, profit.

What could the Westminster and/or Scottish governments do that would help?

Reduce corporation tax for small (micro) businesses.

What was the most valuable lesson that you learned?

Do what you know well. Leave what you do not know to others.

How do you relax? Music, painting, sailing, and switching off the mobile phone from time to time!