French oil major Total secured 300 Scottish energy sector jobs after moving to extend a major North Sea contract servicing the crippled Elgin complex.
The deal which it is estimated will be worth in the region of $150 million over the next two years will see Wood Group PSN provide services to five Total installations including the Elgin and Franklin platforms.
The system had to be shut down last March after a major gas leak forced the emergency evacuation of the platform. Total spent months killing the leaking well and carrying out a major offshore clean-up.
It is estimated that up to seven million cubic feet of gas per day was being released into the sea in the intial period after the leak occurred.
Total’s decision to extend its engineering, procurement, construction and commissioning services contract with Wood Group PSN for Elgin and Franklin comes just weeks after the field was fully brought back online following almost a year of production being offline.
Under the terms of the contract, Wood Group PSN will also provide similar services to Total’s Alwyn and Dunbar infrastructure and for the St Fergus onshore gas plant at Peterhead.
The two firms first started working together 10 years ago and the latest agreement secures 200 offshore jobs in the North Sea and a further 100 roles onshore. The new tie-up is already in effect and will continue for a period of two years.
David Stewart, UK managing director for Wood Group PSN, said he was pleased the close links between the two companies were being extended once again.
He said: “This contract renewal is testament to the quality and standards of the services we provide.
“It is an important contract in our UK business and we are proud to continue to work with Total to deliver a range of technically challenging projects.
“The award recognises the ongoing improvements achieved and provides a platform to further enhance our reputation with a major international company.”