Premier Oil has been given the go-ahead for its £538million Solan development, triggering what is hoped will be the start of a revival of large-scale oil and gas fabrication in Scotland.
The project on the 40million-barrel oil field west of Shetland is expected to see the first major platform made entirely in Scotland for the first time in what is thought to be over a decade, creating scores of jobs.
Announcing the Department of Energy and Climate Change’s (DECC) approval for the scheme yesterday, Premier said the contract for the procurement and fabrication of the platform – jacket and topsides – was likely to be awarded to Burntisland Fabrications (BiFab).
This is expected to create 200 jobs at Methill, where the majority of the work would be carried out.
It is thought work on smaller components at Arnish could secure 45 jobs in Lewis.
BiFab managing director John Robertson said: “It would be fantastic for Scotland at this time to see work stay here and not going overseas.”
The last time a full platform was built in Scotland could be as long as 20 years ago at Nigg, he added.
A contract for a subsea storage tank and installation of the platform has already been awarded to Dutch group Heerema.
The go-ahead for Solan paves the way for Premier’s first operated oil field in the North Sea, a market it has been in since 1971.
Chief executive Simon Lockett said: “DECC’s approval of the Solan field-development plan marks another significant milestone for Premier as we continue to build a substantial business in the North Sea.
“We look forward to the Solan project contributing materially to our production target of 100,000 barrels of oil equivalent per day in the medium term.”
Energy Minister Charles Hendry said: “Premier’s Solan project will bring considerable benefits to the UK. In addition to contributing to the UK’s future energy supplies, a sizeable proportion of the contracts are expected to be awarded to UK companies.”
Initial output of 24,000 barrels per day from Solan is expected in the fourth quarter of 2014. Premier, 60% owner of the field, said the platform would be permanently manned only in the first year of operation. Chrysaor holds the remaining 40% interest.