No deal in talks on yard's future

The Nigg yard has almost 70 acres of yard space

Talks have been held to try to resolve a dispute holding up efforts to re-launch operations at the mothballed Nigg oil fabrication yard.

A potential developer is keen to buy the 100-hectare site in Easter Ross but a stalemate between the two landowners has blocked progress.

Hundreds of jobs could be created if a deal can be struck.

All the parties involved said the discussions had been positive but no concluding deal was reached.

The Nigg yard was opened in the early 70s to construct platforms for the North Sea oil and gas industry.

It has one of the largest dry docks in Europe, 45,570 sq m of covered workshop and almost 70 acres of yard space.

It was once an economic powerhouse in the Highlands, employing 5,000 people and building some of the biggest offshore structures the world had ever seen.

But as North Sea oil development dwindled away so did the market for production platforms.

We've laid out very clearly what our timeframes are Jim Mather Energy minister

Nigg has been largely idle for more than a decade.

The owners of the site - US oil and gas giant KBR and the Wakelyn Trust - have been in disagreement over its sale.

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

They have so far failed to agree a price for the lease to be bought out, which would open the way for the site to be sold.

Highland Council has looked at the possibility of instructing a compulsory purchase order to take control of the site.

Energy Minister Jim Mather hosted talks in an attempt to break that deadlock.

He said: "We've laid out very clearly what our timeframes are and what the timeframes of the council are, and the serious intentions we have to make sure this great asset of Nigg could and should be used to the benefit of Scotland."

A new deal allowing the site to become a construction centre for the renewable energy would bring much needed jobs to the area.

Nigg has previously been used to assemble two experimental offshore wind turbines.

Another role suggested has been the decommissioning of ageing oil and gas installations, a job which Highland councillors previously estimated to be worth £20bn.

The local authority has been eager to revitalise the yard before it falls into disrepair.

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