Shell contracts PSN for UK platform support
Shell UK has issued an integrated services contract to Production Services Network UK (PSN).
ABERDEEN, UK -- Shell UK has issued an integrated services contract to Production Services Network UK (PSN).
The $500 million-plus contract covers engineering and maintenance services on eight platforms operated by Shell in the central North Sea and the Brent field in the northern North Sea.
The duration is five years, with an optional extension of up to two years, and is due to begin next May. PSN will continue the work of Sigma 3, the joint venture between PSN, Wood Group, and AMEC which was formed in 2002 to support Shell’s central and northern North Sea installations, and will provide preparatory services for decommissioning.
Over 1,000 people currently work within Sigma 3 on the Brent and central platforms and in Shell facilities in Aberdeen. This workforce will likely be retained after the handover.
Earlier this year, Shell announced that the Sigma 3 work scope would be divided into two separate contracts - integrated services and decommissioning services. In July, PSN was awarded the latter, initially covering the Brent Delta platform.
Shell has set up a dedicated team in Aberdeen to manage all aspects of the transition.
This is PSN’s largest UK contract to date. The eight platforms it will work on are the four on the Brent field – Alpha, Bravo, Charlie, and Delta – and those on the Shearwater, Gannet, Nelson, and Anasuria fields.
Last year Shell produced 207,000 boe/d in the UK, representing around 8% of Britain’s daily production of 2.48 MMboe/d.