Economic Report 2011

Case Study: North Sea Platform Contract Creates more than 1,000 Engineering and Manufacturing Jobs

OGN Group of Newcastle-upon-Tyne is delivering engineering, procurement, construction and installation services to the offshore oil and gas and renewable energy industries. At its 75 acre Hadrian Yard, OGN has the capability to construct and load out decks in excess of 10,000 tonnes and jackets or substructures weighing up to 7,000 tonnes.

page 42 image 1 300w jpgIn September 2010, Apache North Sea Ltd awarded a £150 million contract to OGN to provide conceptual and detailed engineering design, materials and equipment procurement, fabrication and construction, commissioning and hook-up services for a new oil production platform for its Forties field. Scheduled for onshore completion in July 2012, the new platform will be bridge-linked to the existing Forties Alpha installation. The iconic Forties field, the first of the UK’s large oil fields and originally developed by BP, is still going strong after more than 35 years of production, with at least another 20 years’ life left which this project will help sustain.

Impact on Employment

From its Tyneside base, OGN is providing full manufacturing and administration services for the design and construction of the facility, known as Forties Alpha Satellite Platform (FASP). The contract award has led to the creation of more than 1,000 jobs over a period of 20 months at the Hadrian Yard, with additional jobs being generated at various engineering design offices and supply chain firms throughout the UK.

During peak activity, direct employment has been provided at the Hadrian Yard for:

  • 700 of OGN’s skilled fabrication workforce (platers, welders, riggers and pipe-fitters)
  • 150 of OGN’s project management and design professionals.

page 42 image 2 300w jpgWork outsourced to subcontractors, working on-site, has provided employment for 200 to 300 sub contractor staff (outfitting trades including electrical, control room instrumentation, non-destructive testing, painting, load out etc.)

In addition, work outsourced to a total of 24 supply chain companies has generated 1,000 to 1,500 jobs across an extensive supply chain for off-site manufacture of materials and equipment (e.g. transformers, cranes, valves)

Some 80% of the construction materials for FASP have been sourced from the UK, amounting to almost £40 million in value.

Technical details

  • The dimensions of the platform are: topsides – 40m x 45m x 25m; jacket – 125m x 35m x 35m; linking bridge structure – about 100m long.
  • Topside facilities: 5,575 tonne with full oil and gas processing, gas compression, gas dehydration, sandwash facilities, produced water treatment, pumps, polishing unit, chemical injection, power generation, 50-man lifeboat, local equipment room, high and low voltage switchboard, uninterrupted power supply unit, heating ventilating and air conditioning plant, and platform crane.
  • Jacket: 5,900 tonne, four legged jacket with 12 skirt piles and 18 well slots, configured to allow a jack-up rig access from the west side, and incorporating two risers and two umbilical J-tubes for future subsea tie-backs. It is also designed to accommodate a future 2,000 tonne mobile drilling unit.
  • Bridge: 100m long, 450 tonne bridge linking FASP to the existing Forties Alpha platform. All interconnecting pipework, power and controls cabling are being installed onshore to minimise the offshore work. The sliding end of the bridge is located at FASP.

The overall project is scheduled for overall completion by OGN (offshore hook-up and commissioning) in September 2012.

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