| Details: | The economy of the North East is to receive a massive boost as Offshore Group Newcastle (OGN), the UK-based oil and gas engineering and fabrication contractor, has announced it has been selected by US-based Apache Corporation to construct a new oil production platform for the UK Forties field.
In a deal worth £150 million and one of the largest North Sea contracts recently awarded, over 1000 jobs will be generated over 20 months at OGN Group's Hadrian Yard site in Newcastle as part of this development in the North Sea. The new platform will be bridge-linked to the existing Forties Alpha installation in the Apache-operated UKCS Forties field, which Apache acquired from BP in 2003.
OGN Group is a major UK player in manufacturing in the oil and gas industry and has invested heavily in the North East of England at the height of the economic slump through the acquisition of the 75-acre mothballed Hadrian Yard construction site. Situated on the River Tyne, the site will provide the full manufacturing and administration facilities for the design & construction of the platform.
The project will require a skilled workforce together with project management and design professionals, outsourced sub-contract services on-site and outsourced supply chain for off-site manufacture of materials and equipment. This will require around 1000 individuals in the North East over the construction period and up to 80 percent of the construction materials will be sourced from the UK, worth around £40 million, generating additional jobs through the supply-chain.
Commenting on this major success for OGN Group, Chairman Dennis Clark said: "The North Sea oil and gas market is coming back to life and infrastructure investment looks set to increase further, which is great for Tyneside and the North East region."
Craig Melville, Chief Commercial Officer said: "We are delighted to have secured a pivotal position within Apache's supply chain to provide our experience and expertise to support Apache in their development plans for the Forties Field.
"The North Sea oil and gas market is dynamic and requires an efficient and driven supply chain to support and deliver its objectives - OGN Group business in Tyneside is focussed on meeting these requirements.
"OGN Group has demonstrated its confidence in the upturn in the North Sea and further investment is widely anticipated over the next five years."
James L. House, Apache's regional vice president and managing director - North Sea said: "Our objective was to ensure that we selected an organisation that displayed the key qualities of focus, competence, and a sense of urgency - an organisation that could share Apache's goals and work collaboratively to meet the challenges and demands of this important project for Apache.
"This project will provide Apache with 18 new slots for drilling additional development wells to increase the ultimate recovery from the prolific Forties field, the largest hydrocarbon discovery in the UK North Sea."
Onshore Construction is due for completion in July 2012. The platform will then be towed and installed in the Forties Field.
Nick Brown, MP for Newcastle East, said:
"Congratulations to OGN on winning this contract. This is a big boost for jobs on the north bank of the River Tyne. It's a great achievement."
Energy Minister Charles Hendry said:
"This is welcome news, as well as bringing investment and jobs to the North East, projects like this play a vital role in ensuring we have secure energy supplies throughout the UK.
"Although we are moving towards a low-carbon future, we will remain dependent on oil and gas for years to come, and this Government is resolved in encouraging the safe development of our resources in the North Sea."
For further information, please contact:
Katherine Bergen +44 (0)7974 754 143
Hannah Northern +44 (0)7841 684764
Nigel Kennedy +44 (0)7802 481343
Jennifer Roberts +44 (0) 7912 070 382
Alternatively, please call the office on +44 (0)20 7976 5555
http://www.ogn-group.com/news.shtml |
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