250 jobs created as gas giant moves in

Dec 6 2007 by Andrew Mernin, The Journal

BOSSES at oil and gas giant Fabricom will sign a lease agreement today which will bring 250 engineering jobs to the region.

The Belgian firm yesterday announced plans to create hundreds of jobs by setting up a base in North Tyneside.

The company is expected to complete negotiations over a lease agreement for a site this morning and will begin full operation next February.

Fabricom will set up a base for design and detailed engineering, maintenance and modification work to terminals, platforms and field decommissioning work in the North Sea.

The group, which currently has a base on Teesside, will also provide on and offshore services for international companies such as BP, Shell, Total and ConocoPhillips.

The company will invest in setting up a base in the region on top of £1.6m from regional development agency One NorthEast.

Fabricom Offshore Services chairman Nigel Carlton said: “Most of the new jobs will be highly-skilled engineering design roles. The engineering heritage of the North-East ensures that the skills necessary for our business can be found locally.

“This, combined with the opportunity for expatriate engineers to return to the region and the long-term links we will form with the region’s universities and colleges, will enable us to develop a sustainable business and achieve its growth ambitions.”

Ian Williams, director of business and industry at One NorthEast, said: “Over recent times the offshore oil and gas sector has seen periods of growth and consolidation.

“Most recently the growth opportunities have been in Africa and Asia but investment levels in the North Sea are at an all-time high, being in excess of £11bn over the past year and the current high oil price is expected to maintain a buoyant market for the unforeseeable future.

“North-East England, with its long association with the offshore industry, is ideally located to take advantage of this situation as it did when the oilfields were originally developed.”

Fabricom’s move to Tyneside is the second major boost to the region’s offshore sector in recent weeks after Shepherd Offshore announced plans last month to create 150 new jobs in the region.

The jobs will be created at the former NIM Engineering site which it has acquired and plans to spend £2m on redeveloping it.

See page two to read more on the North East oil and gas sector.