PSN Secures £200 Million Deal with Shell in the North Sea

Tuesday, Jul 27, 2010

PSN has landed a major deal for dismantling work in the Brent Field, which one of its bosses said yesterday would position Aberdeen as the global centre of excellence for offshore decommissioning. 

The Brent Delta Project will create initial 70 onshore management and engineering jobs at PSN in Aberdeen.

PSN is to begin preparation for the Delta rig to be removed from operation; the work will begin later next year.

There are four instillations in the field, the others being Alpha, Bravo and Charlie. Their Multibillion-pound decommissioning over 10 years will be the largest project of its kind in the world.

PSN is now in position to repeat its work on the other three platforms; this could be worth a total of several hundred million pounds to the energy services company.

Peter Brown, UK managing director of PSN, said yesterday: “The award of this contract following a competitive tendering process reflects the strength of our ability to provide Shell with proven decommissioning expertise.

“We are confident the contract will provide a significant number of new job opportunities in the decommissioning services sector. It will also position Aberdeen as the centre of excellence for offshore decommissioning.”

Brian Nixon, chief executive of decommissioning industry body Decom North Sea, said: “This news is highly significant and marks a milestone in the history of the North Sea.

“The fact such a major engineering contractor as PSN has been awarded the contract is great news for the region's supply chain as many smaller companies will benefit in turn and gain experience that will stand them in good stead in years to come.

“It is vitally important that the UK industry and supply chain is prepared to secure maximum opportunity from the North Sea decommissioning programme and, through doing so, becomes globally recognised as a source of expertise and experience.

“With a programme of decommissioning expenditure in the North Sea estimated at up to £30billion by 2040, the north-east Paul Dymond, operations director of industry body Oil & Gas UK, said: “Over the coming decades, the UK oil and gas industry will begin large-scale decommissioning of some of the 470 installations which have been producing oil and gas over the past 30 to 40 years.

“Each decommissioning project is a complex process with considerable technical, economic, environmental, health and safety issues which the industry has to address and manage properly.”

Source: Red Mist Media