WOOD Group has awarded a £36 million contract to a supplier of specialist equipment, which shows how the effects of the boom in the North Sea are rippling through the oil services sector in Scotland.

Aberdeen-based Wood has appointed ATR Group to manage the portable equipment used for things like lifting on its North Sea operations in a three year deal, worth more than £12m annually.

ATR Group, which is also based in the Granite City, will provide equipment for all the projects that Wood Group's PSN maintenance operation is working on in the North Sea.

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The company expects to add 10 people to its 320-strong workforce in Scotland to help service the contract.

Wood Group is one of a number of big oil services operations that have been capitalising on the surge in activity in the North Sea, where firms are trying to maximise production to meet strong demand.

The increased activity at such giants is stimulating demand for the services provided by other firms in the supply chain.

ATR Group has won a string of contracts recently.

It is on track to record £70m sales in the current year and aims to achieve double that in 2015.

Chief executive, Keith Moorhouse, said: "In response to an industry wide shortage of key equipment, we will continue to invest in our UK operations to ensure we have both the resources to meet the requirements of this contract and to meet the ongoing rise in demand from throughout the buoyant North Sea region."

ATR Group, which also operates in Norway and the Caspian region, expects to invest £6m in its rental fleet in the current year. It invested £3m in the fleet last year.

The company secured over £20m expansion funding from NBGI Private Equity and Clydesdale Bank in 2012.