£140m Shell deal secures SubSea jobs

Shell has awarded SubSea Offshore a contract worth more than £140m to provide underwater inspection, engineering and construction services on its North Sea installations for the next five years. The deal will help secure continuity of employment for the 300 staff at SubSea’s base in Aberdeen and comes a week after Shell conceded it would […]

Shell has awarded SubSea Offshore a contract worth more than £140m to provide underwater inspection, engineering and construction services on its North Sea installations for the next five years.

The deal will help secure continuity of employment for the 300 staff at SubSea’s base in Aberdeen and comes a week after Shell conceded it would shed up to 200 of its staff in London when it vacates Shell-Mex House.

At the end of last week, the oil company dismissed initial reports that 2,000 jobs were at risk in London.

The five-year contract will also cover work on smaller new projects, such as subsea ‘step-out’ developments from existing platforms, but will not extend to major projects.

SubSea Offshore will need to beef up the team of eight in Aberdeen that is already dedicated to Shell work. About 140 of the employees at the Aberdeen operation, which last year accounted for over 80% of the company’s £190m turnover, are engineers.

Brent Ford, SubSea’s president, said the contract would enable the company to upgrade its capability to provide more integrated services with the purchase of a new diving support vessel in April 1999.