AKER Solutions has said it expects to create 400 jobs in Aberdeen to keep pace with booming demand from oil and gas firms.
The Norwegian oil and gas services business plans to hire specialists in areas ranging from subsea engineering to drilling technology under an initiative it believes will make the company one of the largest employers in the North East of Scotland.
Aker Solutions is making the move to ensure it has the resources to capitalise on buoyant activity levels in the North Sea, where firms are trying to boost output to meet strong global demand for energy.
Aker Solutions has won a series of big contracts in recent months that have left the company with a very strong order book.
In July the company said it had won a contract worth up to £289 million to deliver the subsea production system for an undisclosed oil field development in the UK North Sea.
"Recent contract wins across the Aberdeen business and a substantial order book in our subsea division mean that we will continue to add to our employee base over the next two years," said Mike Forbes, managing director of the company's Maintenance, Modifications and Operations business in the UK.
The growth has already resulted in a big increase in the company's workforce at Aker Solutions in Aberdeen. The UK arm of Aker Solutions has around 3200 employees working in and out of Aberdeen compared with 2700 in May last year.
The company expects to have the new staff in place by the end of 2015. Aker's announcement provides the latest sign of how surging investment in the North Sea by oil and gas firms is boosting demand for high value services. With oil and gas firms planning to invest more than £40 billion in the coming years to boost production from the UK Continental Shelf, the boom could continue for some time.
Walter Cumming, head of oil and gas for Barclays Corporate Banking, said: "The shelf remains rich in opportunities and ripe for investment, not least because of the high commodity price."
He added: "It's becoming increasingly clear that plans are being drawn up to ensure exploration and production activity continues for decades to come."
Around two thirds of respondents in a survey of oil and gas production and services firms for Barclays said they expected to increase capital expenditure budgets over the next two years. More than 60% forecast investment would increase over a five-year period.
However, the survey highlighted concerns about skills shortages, which some sector watchers fear may crimp growth.
Some 66% of respondents said the skills shortage is the biggest challenge facing the industry.
The survey revealed strong support for increased investment in apprenticeship schemes and for initiatives to encourage people from other industries and other areas to move into the North Sea oil and gas sector.
Aker Solutions said it has worked hard to ensure it has enough skilled staff. The company has recruited more than 100 ex-Forces personnel from across the Army, Navy and RAF to its Aberdeen business.
Around half, 43%, of respondents to the Barclays survey wanted the UK Government to provide greater clarity on what tax breaks will be available to set against the cost of decommissioning assets in future.
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