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Last Updated: Tuesday, 11 December 2007, 09:33 GMT
Fears yard will miss out on work
Nigg fabrication yard
Nigg was recently used as a launch pad for offshore wind turbines
An oil and gas installation fabrication yard could miss out on work worth billions if a dispute over a strip of land continues, councillors said.

The sale of Nigg in Easter Ross cannot go ahead until the lease of the land is resolved.

Highland councillors Jimmy Gray and Richard Durham have warned the issue could result in the yard being ignored for decommissioning redundant rigs.

Plans on securing Nigg's future will go to the full council on Thursday.

Councillors will be asked to approve the drawing up of a vision and master plan for the yard.

They will also be seeking a partner to take immediate ownership of the site and will be delivering the aims of the plan.

The councillors will also be asked to give the green light to the start of preliminary work on a compulsory purchase order, which would give the local authority legal powers to take control of the yard.

Quick solution

Decommissioning of ageing oil and gas installations has been estimated to be worth �20bn.

BP's Hutton and Miller platforms are among the first large in line to be broken up.

Mr Gray said it would be appropriate to dismantle the 17,000 tonne Miller field jacket and part of the 29,000 tonne topside which were built in Nigg, in the same yard.

Mr Durham said the yard could be used for fabrication and decommissioning simultaneously, generating hundreds of jobs in Easter Ross.

He said they needed a quick solution to the ownership dispute to define a clear future for the yard.

US engineering giant KBR is tied into the long-term lease for the southern part from the Wakelyn Trust.

KBR and the trust have failed to agree a price for the company to buy out of the lease.

SEE ALSO
Council may pursue order for yard
12 Nov 07 |  Highlands and Islands
Talks on fabrication yard future
17 Sep 07 |  Highlands and Islands
Last offshore turbine floated out
05 Jul 07 |  Highlands and Islands
'Ghost ship' firm eyes Scots yard
02 Jun 05 |  Scotland

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