THERE has never been a better time for UK companies to expand overseas

and North Sea service and supply companies aiming to go international

should plan to do half of their business abroad by the year 2000,

Aberdeen industrialist Mr Ian Wood said yesterday.

Mr Wood was addressing the Aberdeen Chamber of Commerce Business

Breakfast Club on the internationalisation of the North Sea oil

industry.

He suggested that by 1996 a minimum of 25% of North companies'

business should be overseas. Four years later, that figure should be

50%.

He said the North Sea oil industry was now in the mature phase with

most of the first generation fields well past peak production. ''The

challenge now is to maintain these fields in viable production for as

long as possible and to develop the many new smaller fields which will

require innovative techniques and a heavy emphasis on cost-effective

practice and efficiency.

''From the UK's point of view we are increasingly competing with many

new prospective areas worldwide but therein, of course, lies the

opportunity for the internationalisation of our supply and service

industry.''

He said the UK firms had to take advantage of opportunities because

their major competitors in the US were still going through major

restructuring and had a much weaker home market.

He suggested there should be a switch in emphasis of the type of

support Government gave to companies seeking to break into international

markets. ''The biggest problem facing companies, particularly small

companies, is the whole minefield of the culture change,'' he said.

''Companies must be prepared for different laws, in some cases lack of

binding contracts, different business practices and ethics, serious

problems with financing contracts and payments and the need for joint

venture partners and agents,'' he added.