BiFab lands contracts worth £145 million

abarrelfullabarrelfull wrote on 13 Aug 2012 07:22

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Burntisland Fabrications Ltd signed a contract with Premier Oil plc and Chrysaor Ltd a joint venture (Chrysaor 40%, Premier 60%) developing the Solan Oilfield Development Project located in waters off the west of Shetlands.

This contract covers the procurement and construction of the 3,500 tonnes Topside and 8,000 tonnes Jacket with an estimated value of £145million.

The project will involve BiFab’s manufacturing facilities at Methil, Burntisland and Arnish and is expected to double the workforce by creating 350 new jobs.

Built for 135m of water, it will be one of the tallest structures made in Scotland, and is due for floating out from Methil in April 2014.

Prime Minister David Cameron who was joined by Scottish Secretary Michael Moore overseen the signing ceremony at Methil and has pledged to support manufacturing in the UK. Describing the company as "great British business that is doing fantastic things," Mr Cameron said: "Our economy had become far too reliant on financial services and banking, rather than actually making things.

"And here what you're going to be doing over these coming years, if everything goes well in the oil sector and the renewables sector, is really important, high-quality manufacturing.

"I think that's something to celebrate and something to stand up for."

BiFab managing director, John Robertson, said:

“We are thankful new, innovative companies like Premier Oil are developing these projects, deep water projects in the west of Shetland, and that they are keeping an open mind of where the work goes.

“Premier Oil has a strong drive wherever possible to increase UK contracts.”

"The two contracts were won we believe, not only due to a commercially attractive bid, but also due to the ability and experience of BiFab's management and workforce to deliver a quality product, on schedule and with a good safety culture.

"This latest success enhances BiFab's growing reputation as a major manufacturer of topsides and jackets for the North Sea.

"BiFab is known as one of the largest manufacturers of jacket sub-structures for offshore wind turbines but this is the largest jacket to date for the oil and gas sector.

"Recognising the future demands for a highly skilled work force, BiFab introduced an apprenticeship training scheme in 2007 with the aim to have a rolling programme of 50 apprentices in the scheme at any one time. The award of this project will allow us to continue this programme."

Solan is a Jurassic field and is expected to produce approximately 40 million barrels of oil over its lifetime, with initial production of around 24,000 barrels of oil per day. First oil is targeted to commence in the fourth quarter of 2014.

The field is contained within UK licence P164 covering UK block 205/26a in 135 metres of water off the West of Shetlands. It was originally discovered in the 1990s but remained inactive until it was rescued by Chrysaor in 2007 as part of DECC?s fallow discovery initiative. Chrysaor carried out two successful appraisal drilling campaigns, in 2008 and 2009, before approaching potential partners. Premier farmed-in to the field in 2011.

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