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Lerwick Port Authority has awarded a £11.95m contract that will see the quay at Dales Voe South extended to 130m long.

The Scottish business unit of BAM Nuttall has secured the contract and the port authority said the developments in Lerwick Harbour will increase the deep-water facilities for the offshore oil and gas industry.

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The extended quay will deliver deepwater, berthing and heavy load capacity to take an offshore structure in a single lift, with an expanded laydown area.

BAM Nuttall will extend the quay by about 75m, with a load-bearing capacity of 60t per square metre.

"The contract marks an important step in further developing Lerwick’s role as a leading centre of offshore industry operations."

It will have 12.5m water depth, similar to the existing quay. The sheltered voe, situated between oil basins east and west Shetland has continuous access to the North Sea.

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Port Authority deputy chief executive and Harbourmaster Calum Grains said: "The contract marks an important step in further developing Lerwick’s role as a leading centre of offshore industry operations.

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"Dales Voe South is another value-added expansion and reflects our confidence in future activity, including ongoing subsea projects, particularly west of Shetland, and the developing decommissioning and offshore renewable markets."

The Scottish Government Highlands and Islands Enterprise is providing £2.39m in grant for the project. Bank of Scotland is supporting the port authority’s investment.

Work is due to start in April 2015 and is expected to be completed in April 2016.

Lerwick has been serving the offshore industry for more than 50 years with reputation as a location for decommissioning.

Image: BAM Nuttall will extend the quay at Dales Voe South to 130m long. Photo: courtesy of Lerwick Port Authority.