Over 2,000 UK jobs in fabrication, construction, installation, subsea engineering and drilling will be created or sustained by a new £1.6bn project to extend the life of the North Sea oil fields announced yesterday [24 October].

Oil producer Talisman Energy was given approval by the UK government for the project yesterday to work on six existing oil fields and two new fields – Cayley and Shaw.

An award of £50m has been made to Newcastle-based Offshore Group Newcastle (OGN) to the engineering, procurement and fabrication of the drilling rig’s base.

Geoff Holmes, senior vice president at Talisman’s (UK) business, says: “The Montrose Area Redevelopment project signals our ongoing commitment to maximising recovery of oil & gas reserves from the UK North Sea and, in doing so, our intention to attract and retain top talent across the industry.

OGN chief executive David Edwards adds: “The North Sea oil & gas market is thriving at the moment with substantial investment due to take place in the near future, and we hope these recent awards are the first of many with Talisman in the coming months and years.”

Says energy minister John Hayes: “Together with industry, we are creating a fertile ground for new investment that is in the best interests of the UK.

“The North Sea has been a bedrock of the UK economy, creating jobs, investment and energy security for nearly 50 years. We must do all we can to prolong the economic life of our oil-rich seas and make the most of this precious resource.”