North-east operations of energy services firm TechnipFMC will project manage a huge new contract for the controversial Rosebank oilfield west of Shetland, it was confirmed today.
TechnipFMC has not revealed the total value of the deal, but said it was within its category for “large” projects worth between between £412 million and about £820m.
The Newcastle-based company said its new work for Rosebank field partners Equinor and Ithaca Energy would boost operations across Scotland and the UK, as well as local economies, jobs and the supply chain.
And it has committed the whole of the lower end of the contract price range, £412m, to “local value creation”.
Rosebank will benefit other businesses which provide high-skilled employment, as well as those companies’ suppliers.”
Sarah Cridland, UK country manager, TechnipFMC, added: “By using our trusted local supply chain, Rosebank will benefit other businesses which provide high-skilled employment, as well as those companies’ suppliers.”
Ms Cridland hailed the contract as “good news” for TechnipFMC locations including Westhill, near Aberdeen, adding: “It supports existing jobs and provides opportunities for people who want to continue or start a career in the energy industry.
“In Dunfermline, we will design, engineer and manufacture subsea production systems.
“The umbilicals that power and control our subsea systems will be designed and made in Newcastle. And construction and loadout of the rigid pipe will take place at our spoolbase in Evanton (Easter Ross).”
She added: “The project will be led from our facility in Aberdeen. The city is also the operational base for our fleet of vessels, which will install all equipment for the development.
“The expertise we have developed in oil and gas is directly transferrable to energy transition technologies, and contracts like Rosebank help enable the new opportunities energy transition present.”
Equinor and Ithaca awarded the contract last week, hard on the heels of Rosebank getting approved by the UK Goverment despite a fierce campaign against new oil and gas projects in the UK North Sea.
Meanwhile, energy services firm Petrofac today announced a three-year contract extension – worth more than £80m – with Repsol Sinopec Resources UK.
The work is expected to support in excess of 300 jobs across 10 North Sea assets, as well as a pair of onshore oil terminals.
Petrofac was initially appointed by Repsol Sinopec in 2016, with the scope of work growing significantly in 2020 when six additional assets were added.
Nick Shorten, chief operating officer for Petrofac’s asset solutions business, said: “Our relationship with Repsol Sinopec has continued to grow, adapting to new requirements and the operating environment.
“This contract extension demonstrates our team’s commitment and drive to support Repsol Sinopec through safe and effective operations.
“We look forward to our continued partnership and collaboration across their North Sea assets.”
What assets are covered by Petrofac’s £80m-plus contract extension
The contract covers the Arbroath, Auk, Bleo Holm, Claymore, Clyde, Fulmar, Montrose, Piper, Saltire and Tartan assets. Petrofac will also continue to provide support for the Flotta and Nigg oil terminals.
It follows several other contract extensions in the North Sea for Petrofac.
Last year the London-listed firm announced contract extensions with EnQuest, Serica Energy and Spirit Energy.
The UK remains the largest market for the company, responsible for 26% of group revenue in 2022. Asset solutions has around 40% of the North Sea market share.
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