AMEC Awarded 7-Year Service Contract in North Sea

An AMEC joint venture has signed a strategic seven-year contract, worth an estimated £750 million, to provide extensive support services to Shell Expro in the North Sea.

The new joint venture company, 'Sigma 3', comprises AMEC plc, Wood Group Engineering Services Ltd and KBR. Each company holds a one third share.

Formation of the joint venture approach follows a review by Shell of its existing 'integrated services contracts' in the North Sea; the main drivers being improved safety and production performance efficiency. For AMEC, the new contract covers a broader geographical area of operations in the North Sea and an extension from three to seven years. Taken together these factors provide AMEC with an additional £160 million of services activity for Shell Expro.

The combined UK workforce, onshore and offshore, for Sigma 3 will be around 1400 people. It has a diverse combination of skills and technology particularly in the support service areas of engineering and maintenance. It will support Shell's four main asset cluster's in the Central and Northern North Sea. It will also have an extensive supply chain involving over 200 suppliers of materials and services.

Sir Peter Mason, chief executive of AMEC, said: "For AMEC, this contract marks the continued growth of our services business and the trend towards higher quality earnings through long-term service relationships with major clients."