FORTY jobs will be created in the latest spin-off from a £250m oil rig project being completed in the North-East.

The SeaDragon Offshore project, which has led to the reopening of Haverton Hill shipyard in Billingham, near Stockton, will result in at least two drilling rigs being assembled in the region.

McGill Services Limited, based in Billingham and part of industrial services company Hertel, will build a 192-person living quarters for the first of the rigs, the Oban B, and will be involved in the design and commissioning of all systems in the quarters.

It also has an option to complete similar work on the second rig.

Craig Rose, the managing director of McGill Services, said the work would create 40 jobs at the company, a figure that could increase.

Up to 800 jobs in total are expected to be created as a result of fabrication and assembly works on the rigs at Haverton Hill and nearby Graythorp, home of