Shell said the new building showed a commitment to Scotland

Work on the seven-storey triangular glass office complex is expected to start next year and finish in 2009.

It will be situated next to the company's base in Tullos, providing space for about 1,000 workers and will be known as Campus Tullos.

Shell said it would be "a hub of exceptional talent" for the industry.

Shell's continuing commitment to the north east will help to reinforce the message that Aberdeen is a great place in which to live and work John Reynolds Aberdeen Lord Provost

Shell's European technical vice-president Kieron McFadyen said: "This is excellent news for Shell, excellent news for the city and excellent news for the oil and gas industry.

"The new building will be an iconic contribution to Aberdeen's skyline and the extended office space will secure around 950 jobs for the city.

"We hope that this is something that will bring a sense of pride to Shell and indeed to the people of Aberdeen."

Aberdeen views

He said Shell's projects people provide engineering and management expertise for projects around the world.

"Working together on one campus we will have a dynamic talent base where local, regional and global systems of working will make this a hub of exceptional talent," said Mr McFadyen.

It is hoped new jobs will be created as a result of the development but Shell said it was too early to say how many.

Aberdeen Lord Provost John Reynolds said: "Aberdeen is justly proud of its reputation as the energy capital of Europe.

"Continued investment in the city and the North Sea can only be hugely beneficial for the local economy, while the creation of new jobs is always welcome.

"Shell's continuing commitment to the north east will help to reinforce the message that Aberdeen is a great place in which to live and work."