Iran unrest hampers 1,000-job contract for North East firm

Jul 1 2009 by Peter McCusker, The Journal

POLITICAL unrest in Iran has delayed the arrival in the North East of an oil rig construction contract which is hoped to create 1,000 jobs.

Although the Tees Alliance Group of engineering industries is still hopeful of securing the deal with a Middle East oil company for work in Haverton Hill shipyard at Billingham it does not now know when it will arrive.

The deal was hoped to have been signed in spring for work which would create 600 construction jobs and 400 jobs in the supply chain, but there has been little progress in recent months, especially after the Iranian election debacle. TAG had been earmarked to build the platform for a Saudi Arabian group, which itself had expected to win an order from Iran’s government to drill for oil in the Persian Gulf.

TAG chairman David Eason said: “Due to the political unrest in Iran there has been a delay to the placing of the contract. The Saudi Arabian company are waiting. We are waiting. And at this stage we do not know when we expect an answer. It’s very disappointing and at the moment it’s a case of wait and see.

“However, we are working on other possibilities and are confident of securing work for the Haverton Hill shipyard.” It is another disappointment for TAG, which was launched to bid for a £300m contract to build two rigs for Cayman Islands company SeaDragon, but the buyer cancelled the order last March, shortly after TAG had started work on the project.

Stockton North MP Frank Cook has played a part in the Saudi negotiations. He said: “It has been put on hold, but I think it can get back on track once the issues in Iran have been resolved.”

The election led to the most intense protests on Iran’s streets since the Shah’s overthrow 30 years ago.

The unrest became evident before the vote on June 12 in which incumbent President Mahmoud Ahmadinejad was declared the winner amid vote-rigging allegations.

This week Iran’s Guardian Council confirmed him as the winner and it is not yet clear how the political situation will develop.