Decommissioning win brings new jobs to North Tyneside

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21 December 2010

Further to being awarded a significant contract from Shell UK for the onshore dismantling of structures from their Indefatigable (Inde) gas field in the Southern North Sea, Veolia Environmental Services (UK) Plc with its offshore decommissioning partner, Peterson SBS will be investing in facilities on North Tyneside creating a number of new jobs and boosting the local economy.

The work will be carried out at the former Swan Hunter shipyard at Wallsend. Veolia Environmental Services (UK) Plc anticipates creating directly thirty-five jobs as well as sub contracting work.

Veolia Environmental Services (UK) Plc will operate the facility by arrangement with North Tyneside Council and anticipate this contract will provide them with an important foothold in the Southern North Sea decommissioning market. The company already has strong expertise in this sector operating a similar facility in Shetland covering the Northern North Sea.

The contract will start with preparation work in January 2011, with Veolia Environmental Services (UK) Plc’s decommissioning partner, Peterson SBS, planning to offload eight gas field ‘jackets’ (rig legs) and eight topside structures with a total tonnage of around 10,500 from April to October next year.
Veolia Environmental Services (UK) Plc will operate the facility under an Environment Agency permit with a bespoke health and safety and environmental management system and comprehensive environmental reporting.

Jean-Dominique Mallet, Chief Executive Officer of Veolia Environmental Services (UK) Plc said: “The UK North Sea decommissioning market offers considerable opportunities and we are delighted to be extending our decommissioning capabilities to cover the entire UK North Sea oilfield by supporting Shell and partners on this sustainable new contract.
Energy Minister, Charles Hendry added: “Decommissioning our redundant offshore structures is set to develop into a multi billion pound industry over the next few decades. It is encouraging to see that this contract has been won by a UK-based company and I hope to see this become a growing trend.”
North Tyneside elected mayor Linda Arkley said: "We have very ambitious plans for the North Bank of the Tyne.
“I’m sure the vast majority of Wallsend residents, especially those who worked at Swan Hunter, will welcome this announcement, which will create a number of local jobs, and bring the yard back into use.”
Herman Zant, Shell Inde Project Manager, said: “We are pleased to bring work to North Tyneside as we dismantle and dispose of the materials in a responsible way after more than 30 years of energy production from the Inde gas field for the UK.”
Shell operates the Inde field on behalf of itself and its co-venturer Esso Exploration and Production U.K. Limited (Esso).
Note to editors:
1. Berthing of vessels and reverse engineering work is within the existing planning permissions and environmental permits.

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