A BID to extend the life of oil fields in the North Sea will see £50m invested in North East industry and spark the creation of more than 400 jobs, it was announced last night.
An investment of £1.6bn will lead to the production of a further 100 million barrels of oil at a new rig and will also see more than £50m ploughed into industry on the banks of the River Tyne.
Offshore Group Newcastle (OGN), which makes frames for offshore oil and gas platforms, last night revealed it had won a multi-million pound contract from Talisman Energy for the engineering, procurement and fabrication of the jacket, the drilling rig’s base.
Bosses said the cash injection would help to create more than 400 jobs at OGN’s Hadrian Yard facility, in Wallsend, North Tyneside, as well as business at companies in its supply chain.
Dennis Clark, chairman of OGN, said: “It is extremely encouraging for our business and our employees to be selected to undertake such a major project by a leading international oil and gas company.
“I am confident that our skills and capability will enable us to fulfil Talisman’s requirements.”
Talisman said the MonArb Area Redevelopment (Mar) project involves the existing Montrose, Arbroath, Brechin, Arkwright, Carnoustie and Wood fields.
The fields lie some 130 miles east of Aberdeen in water depths of around 90m (300ft). The project – said to involve more than 2,000 jobs in total – also includes consent for the Cayley and Shaw fields.