Chrysaor gives North Sea crane management deal to Sparrows
- Business & Finance
London-based independent oil & gas company Chrysaor has awarded Sparrows Group a three-year crane management services contract on three UK North Sea assets it took over from Shell in November.
Shell sold a package of its UK North Sea assets to Chrysaor for up to $3.8bn, including an initial consideration of $3bn and a payment of up to $600m between 2018- 2021 subject to commodity price, with potential further payments of up to $180m for future discoveries.
The package of assets consists of Shell’s interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Area, the Greater Armada cluster, Everest, Lomond, and Erskine, plus a 10% stake in Schiehallion.
Sparrows said on Monday that the scope of work would see the company operate and maintain seven cranes across the Armada, Everest, and Lomond gas platforms located 233 to 250 kilometers east of Aberdeen on the UK Continental Shelf (UKCS).
The campaign will be a continuation of the work Sparrows has carried out over the past decade for BG and subsequently Shell on the three installations. This includes the delivery of offshore crane operations and maintenance, including the supply of rigging lofts and inspection services, as well as overseeing the onshore management of all crane maintenance strategies and related engineering scopes.
Sparrows chief executive officer, Stewart Mitchell, said: “With our unrivaled knowledge of the existing platform cranes on the Armada, Everest, and Lomond platforms, we look forward to supporting Chrysaor on these important Central North Sea developments and delivering all their crane maintenance requirements.”