Montrose base boosted by huge North Sea oilfield deal

EQUIPMENT: Baker Hughes will manufacture kit in Angus as part of new contract

A deal believed to be worth up to £47 million is set to bring a massive boost to an Angus manufacturing facility.

The oilfield service firm Baker Hughes, which has a substantial presence in Montrose, has clinched a contract to provide a range of subsea kit and services for Apache’s North Sea business.

The value of the deal was not disclosed by the two Houston-headquartered companies, but it is understood to be worth somewhere between £23.5m and £47m.

Apache will use the “Christmas trees” and wellheads to support its exploration and development activities in the North Sea over the next three years.

Project management and engineering will take place in Aberdeen and manufacturing will be carried out at Baker Hughes’ enlarged base in Montrose.

Baker Hughes said the agreement further strengthened the “existing collaboration” between the two companies.

Romain Chambault, director of Baker Hughes’ European oilfield equipment division, said: “We are pleased to continue our long-standing partnership with Apache in the North Sea, to support their ongoing and future development campaigns, and remain a strategic partner to optimise their efficiency and production results.”

Baker Hughes unveiled its revamped campus in Montrose with great fanfare in June, hailing it as one of the most advanced facilities of its type in the world.

It invested £31m in a new 43,055sq ft building and expanded warehouse space at the so-called centre of excellence. The project was supported by a £4.9m grant from Scottish Enterprise.

Picture: Kim Cessford. Equipment manufactured at Montrose.