The Kvaerner yard in Methil, Fife, will need another 600 workers in addition to the 200 it already employs to build an offshore platform for US oil company Texaco's Captain field in the North Sea.

Kvaerner saw off fierce competition to clinch the contract for the new process and utilities platform that Texaco hopes will boost production by 1,500 barrels a day.

Work on the structure will begin as early as Spring 1999 and will be completed and commissioned by Autumn 2000.

£350m investment

Executive Vice-President of Kvaerner Oil and Gas UK George Mowatt said: "Won in the face of very stiff competition, the securing of this contract, which is the largest to be awarded in the United Kingdom Continental Shelf this year, confirms Kvaerner's position as market leader in the provision of complete business solutions in the oil and gas industry."

Croydon in England will also receive a boost as the home of the platform's design team.

Texaco is expanding its production in the Captain Field to 85,000 barrels a day, subject to approval by the Department of Trade and Industry.

Texaco North Sea UK Managing DirectorJohn McDonald said: "With this new investment, the Captain field is expected to be able to continue production for a further 20 years. The total investment figure for the field's expansion is in excess of £350m.