Apache Corporation has selected UK based oil and gas engineering and fabrication contractor OGN Group to build a new satellite oil production platform for the UK Forties field.

The new platform will be bridge-linked to the existing Forties Alpha installation in the Apache-operated field, located on the UK continental shelf.

The contract is worth in excess of $240m and is expected to generate more than 1,000 jobs over 20 months at OGN Group's Hadrian Yard site in Newcastle and with other local contractors, according to the company.

Apache regional vice president and managing director of North Sea James House said that this project will provide Apache with 18 new slots for drilling additional development wells to increase the ultimate recovery from the Forties field, the largest hydrocarbon discovery in the UK North Sea.
In addition to increased drilling capabilities, the satellite platform will expand critical utility services to the field, including power generation, produced fluid processing, high-pressure gas compression for artificial lift, and dehydration.

Onshore construction is expected to be complete by mid-year 2012. The platform will then be towed and installed at the Forties field location in the central North Sea.

Apache holds an approximate 97% working interest in the Forties field.