A Fife dockyard has won a £30 million contract to build subsea equipment that will extend the lives of two oil fields until 2035.
The deal to manufacture 74 subsea structures at Babock International Group’s Rosyth base will secure 100 jobs.
The modules are destined for BP’s Quad 2004 offshore redevelopment project in the north Atlantic, west of Shetland.
This £3 billion project is upgrading facilities at the Schiehallion and Loyal oil fields so production can continue until at least 2035.
Two Queen Elizabeth class aircraft carriers for the Ministry of Defence are also being assembled at the dockyards.
Mike Pettigrew, Babcock’s managing director of future business, said the contract will boost Babcock’s profile in the oil and gas sector where it has, so far, mainly been focused on vessel integrity and design.
“This announcement is great news for our Rosyth facility and demonstrates our capability to operate within the offshore energy sector,” he said.
“While our commitment and focus on the delivery of the Queen Elizabeth class programme remains unchanged, this project presents us with excellent opportunities to enhance the utilisation of our facilities and resources here on the Forth.”
He added: “This is a multi-faceted technical programme which will sustain over 100 positions and provide training and development opportunities here at Rosyth.
“In addition, we will continue to involve our apprentices in exciting and specialised areas of our operations, strengthening the skills base of our next generation of engineers.”
Work is due to begin in March.
Andrew Train, BP Quad 204 Offshore programme director, added: “The Quad 204 project is a major investment in the North Sea for BP and its partners, and this is a key contract for the delivery of the subsea production system.”
Fife councillor Kay Carrington, executive member for business, enterprise, economy and planning, said: “This is excellent news for Babcock, Rosyth and Fife, and a significant boost for the local economy.
“Babcock is fast becoming a key player in energy and renewables, and this contract is an important strategic development for the company to diversify from their traditional strengths into new markets.”
She added: “This puts Fife firmly on the map as a major engineering and logistics location within Scotland and the UK.”
Babcock International employs more than 1,700 people in Fife. It is one of the UK’s leading engineering support services company, with recorded revenue of £3.1bn last year and an order book of £13bn.
First Minister Alex Salmond said he was pleased the work was coming to Fife.
“Babcock has a major presence in Scotland and a proud history of engineering excellence.
“Securing this latest contract is a testament to the skills and flexibility of its workforce in Rosyth, which will support Scotland’s economy, promote growth and sustain jobs in our world-leading oil and gas sector.”
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