PSN Wins Record North Sea Services Contract from Shell
PSN (Production Services Network) has been awarded a major integrated services contract by Shell UK Limited. The record five year contract is worth in excess of $500 million (USD) to PSN and includes the provision of integrated services to eight of Shell's North Sea assets.
This is one of the largest contract's the company has been awarded in the UK to date. PSN will succeed Sigma 3, a joint venture set up in 2002 to provide integrated services to Shell for its central and northern assets in the North Sea. Sigma 3 will continue its activities until May 2011 when PSN takes over.
The contract was awarded after a competitive tender process designed to select a single contractor. Under the contract PSN will provide engineering and maintenance services to the four Brent field platforms - Alpha, Bravo, Charlie and Delta - and the Shearwater, Gannet, Nelson and Anusuria assets.
Over 1000 people are currently working within the joint venture, on the Brent and central platforms and within Shell facilities in Aberdeen. It is expected that this workforce will be retained and TUPE over to PSN.
Peter Brown, UK managing director of PSN said:
"This is one of the largest integrated services contracts in the UK North Sea and the award to PSN reinforces the strength of the long term relationship we have developed with Shell over the last 25 years of continuous service. This contract represents the dawn of a new era. It is an opportunity for PSN and Shell to introduce an exciting new way of working in the Central and Northern North Sea.
"We are extremely proud to have secured this major piece of work and we will focus on retaining the existing skills and knowledge. Our open, innovative and flexible business culture combined with the enthusiasm of our team played a major part in this award and we look forward to working as part of Shell's team to deliver excellence in the challenging landscape of change that is the North Sea."
SIGMA 3 (North Sea) Ltd was a joint venture company set up to provide integrated services on behalf of Shell in the North Sea. Partners include AMEC, PSN and Wood Group. It has existed for over a decade providing maintenance and modifications work, plus preparation for decommissioning to Shell.
Earlier this year, Shell announced that the Sigma 3 workscope was being divided into two separate contracts - the integrated services contract and a separate decommissioning services contract. In July 2010 PSN was awarded the Decommissioning Services contract, initially covering the Brent Delta platform and will now provide integrated services and decommissioning services to Shell's central and northern North Sea assets.
Published 05/10/2010
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