Deal secures 600 jobs at offshore engineering yard

Hundreds of jobs have been secured at a Wallsend company after it landed a major contract in Scandinavia.

OGN Group – the offshore engineering, procurement and construction specialist – has landed a new deal with Kvaerner for the Shell-operated Nyhamma onshore gas plant project in Norway.

As part of the multi-million pound agreement, OGN will fabricate a series of 18 pre-assembled units and pre-assembled racks for the onshore plant, which provides gas supplies to the UK.

The 13-month project, which begins in August, incorporates the project management and fabrication of the units including installation of equipment, electrical and piping systems.

OGN officials say the project will help to maintain an additional 600 jobs at OGN’s Hadrian Yard on the bank of the river Tyne, as well as a couple of thousand indirect jobs in the supply chain.

The project will help to provide a pipeline worth of work alongside existing contracts being delivered by the company.

David Edwards, chief executive officer at OGN Group, said: “Winning this significant project highlights the momentum that we are building at OGN through the delivery of high-profile oil and gas fabrication projects.

“Following on from securing the EnQuest Producer FPSO project and the fabrication of an 800-tonne process module for the North Sea, we are proud to bring another important contract to the north east awarded by another highly respected international contractor.

“This project is part of our strategy of securing a sustainable project pipeline for the business that will support our skilled workforce and our established supply chain.”

The onshore plant is connected to the Ormen Lange gas field 120km off the west coast of Norway.

Ormen Lange was developed as a subsea tie back to the Nyhamma Gas Plant where the gas is dehydrated, hydrocarbon dew-pointed and compressed through the Langeled Nord Pipeline to gas markets in the UK.

In total, circa 4,000 tonnes of fabricated units will be delivered by OGN with individual units weighing up to 670 tonnes.