Offshore fabrication firm AMEC has won a multi-million contract for an oil and gas platform for the Clair field in the North Sea.

The Wallsend-based company has won a £50m deal to build the topside for the 540ft high platform, which will be based 47 miles west of the Shetland Isles.

The topsides will comprise of three decks, which will accommodate all the required facilities for drilling and processing the oil and gas produced. The news is seen as a huge boost for employment at the yard, safeguarding the jobs of several hundred people currently working on a Shell platform for the Bonga oil field, off the coast of Nigeria.

Around 500 staff are currently employed on the Shell contract.

The Clair deal has been awarded by oil company BP, following a competitive tendering process.

Scott Urban, group vice president North West Europe for BP, said: "Our procurement strategy in the increasingly complex environment requires us to find the most cost-effective outcome from a competitive bid process.

"Each of the tenders for these contracts was submitted to a rigorous evaluation which examined the competence of each company over a range of disciplines and work practices.

"Our tendering strategy has enabled us to award these contracts in both cases to the most competitive bidder that met our safety and technical requirements."

Sir Peter Mason, AMEC's chief executive, said: "This important award further strengthens our long term relationship with BP in the energy market sector that accounts for around 25 per cent of our ongoing global activity.

He added: "As a prime services provider to the oil and gas industry AMEC is a leader in the North Sea support service industry and is also providing long term services to a number of major projects for clients around the world". The news was also welcomed by Energy Minister Brian Wilson, who said the decision to award the contract to AMEC at Wallsend was "a huge boost for employment in the North-East, which shows that competitively priced bids from UK fabricators will succeed." He added: "I am very pleased that this will ensure continuity of work at Wallsend and for sub-contractors across the UK."

The £30m contract for the fabrication of the platform jacket was awarded to the Norwegian company, Aker Verdal.

It involves the construction of a single steel jacket, which will be fixed to the seabed.

The completed rig will be installed in the summer of 2004, with the first oil expected by the end of that year.

The Clair field is located approximately 47 miles west of The Shetland Isles in 460 feet of water, and covers an area of 85 square miles.

It is a joint venture between BP, Conoco, Chevron Texaco, Enterprise Oil and Amerada Hess.