Aberdeen energy service company PSN has beaten rivals Petrofac and Wood Group to win a £300million-plus contract with Shell UK.
PSN said yesterday it was to provide integrated services to eight Shell assets – seven platforms and one floating production vessel – in the central and northern North Sea.
The contract is held by the Sigma 3 joint venture, which involves PSN, Wood Group and AMEC, but it emerged in February that Shell was re-tendering Sigma 3 work in an attempt to cut costs.
More than 1,000 people are employed by Sigma 3 and they are expected to transfer across to PSN when the contract changes hands in May.
PSN said the Shell deal was one of the largest it has been awarded in the UK to date.
PSN UK managing director Peter Brown said: “This five-year contract represents the dawn of a new era.
“It is an opportunity for PSN and Shell to introduce an exciting new way of working in the central and northern North Sea.
“Our open, innovative and flexible business culture combined with the enthusiasm of our team played a major part in this award and we look forward to working as part of Shell’s team to deliver excellence in the challenging landscape of change that is the North Sea.”
Ken Robertson, asset manager for Shell’s central and northern North Sea assets, said: “We congratulate PSN and we look forward to working with them. They are a party to the current contract and so they know this part of our business well.”
Yesterday’s deal signals the end of Sigma 3.
It is the second big North Sea contract that PSN has landed from Shell in less than four months.
It was announced in July that the Aberdeen company was to carry out a near-£200million contract for decommissioning work in the Brent field. The Brent Delta project is creating an initial 70 onshore management and engineering jobs at PSN in the Granite City.
PSN is to prepare the Delta platform to be taken out of operation, with work expected to begin late next year.
There are four installations in the field, Shell’s flagship asset in the UK North Sea – the others being Alpha, Bravo and Charlie – and their decommissioning over more than 10 years will be the largest project of its kind in the world.
PSN is in pole position to repeat its Delta work on the three other Brent platforms, which could be worth several hundred million pounds to the Aberdeen firm. About 700 people work on the Brent platforms and a similar number will be needed offshore during the decommissioning. The Shell decommissioning service contract was also held previously by Sigma 3.
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