INDUSTRIAL services group Chieftain will create about 250 jobs in the North-East after winning its biggest contract in the oil and gas sector.

The Newcastle company yesterday announced it had struck a "substantial" deal for a major outfitting package, which includes fabrication and installation work, and testing of process pipe systems.

About 100 jobs will be created in Newcastle, and 150 on Teesside. Chieftain said work will begin immediately and is due to be completed by next spring, adding that it was hopeful of being awarded a second deal later this year, creating more jobs.

Although the company acknowledged the contract is the largest it has won in the industry, Chieftain said it could not give any more details.

It is the latest success for the company, which recently recorded its best annual results, with its order book reaching a record £69m last year.

Bill Taylor, chief executive of Chieftain, said it was a massive deal for the company, and predicted further growth.

"I am absolutely thrilled that Chieftain has won this substantial contract," he said.

"Not only does it reflect the sheer progress which we have made in recent years and the inherent quality of our services offered, it endorses the world-class status of the North-East of England in this demanding, highgrowth sector."

Recently, Mr Scott predicted "exciting times" for the plc on the back of strong results and said the company was tendering for major contracts. Last week, it unveiled a record 40 per cent rise in pre-tax profits to £2.1m in the year to December 31, and a 39 per cent increase in turnover to £46m.

Founded in 1979 as an insulation contractor, Chieftain has developed organically and by acquisition to become one of the biggest firms in its sector.

Since 2004, Chieftain has operated in three divisions - engineering, marine outfitting and environmental services.