PSN (Production Services Network) has been awarded a major integrated services contract by Shell UK Limited. The record five year contract is worth in excess of $500 million (USD) to PSN and includes the provision of integrated services to eight of Shell's central and northern North Sea assets.

This is one of the largest contract's the company has been awarded in the UK to date. PSN will succeed Sigma 3, a joint venture between PSN, Wood Group and AMEC set up in 2002 to provide integrated services to Shell for its central and northern assets in the North Sea.

PSN was awarded the contract after a competitive tender process designed to select a single contractor. Under the contract PSN will provide engineering and maintenance services to the four Brent field platforms - Alpha, Bravo, Charlie and Delta - and the Shearwater, Gannet, Nelson and Anasuria assets.

Over 1000 people are currently working within the Sigma 3 joint venture, on the Brent and central platforms and within Shell facilities in Aberdeen. It is expected that this workforce will be retained and TUPE over to PSN. The transfer from Sigma 3 to PSN is planned to be in May 2011.

Peter Brown, UK managing director of PSN said, 'This is one of the largest integrated services contracts in the UK North Sea and the award to PSN reinforces the strength of the long term relationship we have developed with Shell over the last 25 years of continuous service. This contract represents the dawn of a new era. It is an opportunity for PSN and Shell to introduce an exciting new way of working in the central and northern North Sea.

'We are extremely proud to have secured this major piece of work and will focus on retaining the existing skills and knowledge. Our open, innovative and flexible business culture combined with the enthusiasm of our team played a major part in this award and we look forward to working as part of Shell's team to deliver excellence in the challenging landscape of change that is the North Sea.'

Tags: Production Services Network