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9 August 2012 | Adam Leach
Contracts for the sixth largest gas field in the UK will create at least 1,200 jobs and pump £337 million into the domestic supply chain.
In an announcement made yesterday, the field’s operators – GDF SUEZ, Centrica and Bayerngas – said that of the £375 million total spend for initial contracts on the Cygnus gas field in the North Sea, £337 million will go directly to UK companies.
While the contracts awarded so far cover the initial stages of the project, the operators said the majority of spend throughout the entire project will go to UK contractors, with 80 per cent of the £1.4 billion that will be invested expected to go to UK operators.
Jean-Marie Dauger, executive vice president at GDF SUEZ, said: “I am delighted to announce that we have signed these initial contracts, which demonstrate our commitment to the UK supply chain. We are proud that Cygnus will bring substantial jobs and investment to the UK. We look forward to working with our partners and contractors to develop this very significant project.”
Contracts already awarded for the field, which is expected to produce five per cent of total UK gas production, include detailed engineering design to AMEC and the drilling contract to Ensco. The plans for the project include two drilling centres, four platforms and at least 10 development wells. It will be located 150 km off the coast of Lancashire.
Ed Davey, secretary of state for energy and climate change, said in a statement: “The North Sea remains a vital source of the nation’s energy security and our expertise is renowned the world over. The government is determined to maintain the best possible investment environment to ensure we capitalise fully on this national asset.”