Oil and gas removals firm CessCon Decom is to create up to 50 jobs with a new decommissioning base at the Port of Aberdeen.
The services company, which has recycled huge oil platforms at its Energy Park Fife site in Methil, said the new Aberdeen hub will be operational in the third quarter of this year.
Based at Crathes Quay at the new £400m South Harbour expansion, the facility will deliver dismantling, recycling, and reuse services, with a key focus on subsea infrastructure.
Recently, the industry regulator estimated North Sea operators will need to spend over £1 billion to decommission subsea equipment over the next 20 years.
CessCon said the jobs boost is expected over the next 12 months and the firm will be encouraging applications from people living locally.
The new facility, being set up under a memorandum of understanding with the Port of Aberdeen, aims to establish the area as the “port of choice” for the offshore decommissioning sector.
It will offer heavy lift zones, impermeable concreate dismantlement and processing areas, water collection and treatment facilities, material storage areas, offices and canteen facilities.
By weight, CessCon said it aims to reuse any recycle 98% of all material.
CessCon said the new hub will be “well placed” to service the growing decommissioning market, in parallel with the its Energy Park Fife facility in Methil.
The firm has landed 23,000 tonne platforms at the Fife site; Spirit Energy’s DP3 and DP4 platforms used in the East Irish sea.
The facility is coming as the Port of Aberdeen waits with bated breath for an announcement on the UK-Scottish Government Green Freeports competition, having submitted a joint North-east bid with Peterhead Port.
Port of Aberdeen said success would mean the creation of up to 32,000 jobs across the region and boost Gross Value Added by £8.5 billion.
The expanded £400m South Harbour had a “soft start” in July ahead of becoming fully operational in October, and construction completing in Q2 2023.
Chief executive Bob Sanguinetti said the new CessCon base is among “a number of exciting opportunities” it is pursuing to attract more decom work to Aberdeen.
“Decommissioning is an important part of the UK’s energy transition and there are growing opportunities to reuse, repurpose and recycle material during the decommissioning process.
“We are keenly focused on this with CessCon and it complements our vision of becoming Scotland’s premier net zero port at the heart of the nation’s energy transition.”
The value of the decom hub has not been disclosed at this stage.
Trade bodies Offshore Energies UK and Decom North Sea hailed the pair’s ambition to make Aberdeen a “centre of decommissioning excellence”.
The Aberdeen move marks another expansion for CessCon after opening a new site in Brunei last month to capture the South East Asia market.
Chief executive Lee Hanlon said: “The new facility will be capable of handling turnkey decommissioning projects and the associated vessels. The substantial laydown and processing areas and water depths allow us to accommodate vessels up to 300m in length.
“With direct access to the North Sea, the facility is well placed to service the growing decommissioning market in parallel with our Energy Park Fife Decommissioning Facility in Methil, Fife.”