International engineering and project-management company AMEC said yesterday that a joint venture had won a £500million-plus contract extension.
The three-year deal worth £176million annually is for the integrated service contract for assets known as Shell ONEgas southern North Sea.
ONEgas is a combined business unit of Shell UK Exploration and Production and Dutch oil and gas company NAM.
AMEC said that the company and joint-venture partners Jacobs and Stork secured the contract extension as a result of continued exceptional performance and business improvement.
They have held the contract since 2003. AMEC said future contract extensions would also be performance based.
The deal involves 54 southern North Sea offshore assets, plus the Shell Bacton plant in the UK and the NAM-operated Den Helder gas plants in the Netherlands.
Up to 1,000 people are employed by the joint venture.
AMEC said it was one of the largest and most complex asset-support contracts in the North Sea.
John Pearson, managing director of AMEC’s Europe and west Africa business, said: “Our excellent performance over the past 18 months with our business-improvement drive has set us up for this award, which has taken a huge amount of effort from our staff.
“Everyone involved with this achievement should be really proud as they have truly contributed to this success and in parallel helped to secure their own future.”
Neil Bruce, chief operating officer of AMEC’s natural resources and power and process divisions, added: “I am pleased that Shell has recognised the incredible efforts AMEC and our partners have put into sustaining production from the assets, and has rewarded us with an extension to the contract.”
UK-based AMEC has annual revenue of more than £2.5billion and employs more than 21,000 people in about 40 countries worldwide. Its natural resources operation is based in Aberdeen, where it employs about 3,000 people.