I have always maintained that the future for the River Tyne is the brightest in the UK

Kevin Curran, GMB union

If Swans is successful it would create 200 more jobs and a guarantee a year's work.

Luke Corbett, chairman and chief executive of Kerr-McGee, was at the Global Producer III inauguration.

A company spokesman said: "Talks have been going on for some time between Swan Hunter and us, about what would be a second order for them.

Next bid

"Discussions are continuing but no decision has been made yet."

Norman Brownell, Swan's commercial manager, said: "Work on the present Kerr-McGee vessel began last November and will finish in September.

"We are bidding for the firm's next contract."

Brian Wilson named the vessel

The Global Producer III is a floating production, storage and offtake (FPSO) vessel which will serve the Leadon field - currently the largest development in the UK sector of the North Sea.

As well as completing that job Swan Hunter is also working on a �130m Ministry of Defence contract to build landing vessels.

The yard was in receivership six yards ago but is now a flagship for industry on the Tyne.

'Bright future'

Its bid for new orders comes just weeks after the mothballing of the Cammell Laird yard at Hebburn, on the other side of the river.

Kevin Curran, regional officer for the GMB union, said: "A new contract with Kerr-McGee could mean another 500 jobs which is a very welcome development.

"Despite the bad news at Cammell Laird I have always maintained that the future for the River Tyne is the brightest in the UK."

The total cost of the Global Producer III project for the Leadon field, including building the platform, is �450m.