Dyce-based helicopter operator, CHC, has secured a multimillion-pound contract with energy supermajor Shell (LON: SHEL) to support its operations in the North Sea for five years.
The Helicopter operator will support Shell from its hanger in Aberdeen from July this year and the contract will run until 2028.
This is a brand new contract between the two firms, in addition to agreements CHC and Shell already have in the Central North Sea.
Although no confirmation has been given on the value of the deal, CHC says the “contract provides for two H175 helicopters, a move towards new generation aircraft offering greater efficiencies.”
Director of Air & Sea Analytics, Steve Robertson says that “Likely that this contract is worth circa $70m to CHC.”
Mr Robertson adds: “CHC will be flying to Shell producing assets such as Gannet, Pierce, Nelson and Shearwater and also to assets they are decommissioning such as Brent in addition to any mobile rigs they may have under contract for drilling/work-over/abandonment of wells.
“There are some material field developments coming up such as Jackdaw.”
The aircraft will be used for transportation services to Shell’s new and existing Central and Northern North Sea installations.
CHC has been asked but could not confirm how many extra flights will take off from Dyce as a result of this deal.
© Supplied by Image: Wullie Marr /Dave Grant, sales director EMEA, CHC, commented: “Shell has been a core customer of CHC’s for close to a decade now, and this latest contract consolidates our long-term strategic relationship in the market.
“Our operations in the North Sea continue to go from strength to strength – we have a fantastic team who strive every day to deliver an unmatched quality of service and will ensure Shell’s team members can always reach their destinations and return home safely and efficiently.
“We have been actively supporting the North Sea energy market for decades, combining local market knowledge and expertise with an aptitude for innovation, with safety and sustainability at the core of our operations.”
Offshore Helicopter Services UK Sale
This comes as CHC’s sale of Offshore Helicopter Services UK to the South African Ultimate Aviation has been approved by the UK competition standards watchdog.
“With this partnership, we can access greater resources, more scope for expansion, and improved efficiencies, all while maintaining our company culture and commitment to clients,” Ultimate Aviation said.
At the start of the year, CHC announced that it had closed a deal to offload Offshore Helicopter Services UK to the South African firm after the UK competition watchdog ordered the sale of the Babcock business.
CHC’s acquisition of its competitor was blocked as the competition authority claimed it would “significantly reduce rivalry” in the North Sea.
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