BP announces new contract in North Sea oil exploration

Oil company BP has announced a new contract with a specialist offshore engineering firm as it looks to make further progress in the Shetland Islands.

Around 3,000 new oil and gas supply jobs are set to be created in the area after the firm agreed a multi-million pound contract with Subsea 7 to create new pipelines for the Clair Ridge drilling project.

According to the Press Association, offshore operations are to begin later this year, while the deal is thought to be worth around £63 million.

Scottish secretary Michael Moore is quoted by the news provider as saying that the news is excellent for the area.

"This major contract underlines the confidence of the oil and gas sector and world-leading engineering firms with bases in Scotland," he explained.

"The construction of the pipeline is an essential step in opening up the considerable potential of the west-of-Shetland field."

It comes after Centrica announced that is has increased its stake in the Statfjord oil field in the North Sea.