NORTH Sea-focused Chrysaor has awarded Sparrows a multi-million contract to manage cranes on platforms it acquired from Shell through a blockbuster acquisition that completed last week.

Chrysaor bought a portfolio of assets that accounted for around half Shell’s North Sea production for up to $3.8bn (£3bn).

It has appointed Sparrows to operate and maintain seven cranes across the Armada, Everest and Lomond gas platforms around 140 miles east of Aberdeen for three years.

The contract provides a vote of confidence for Sparrows. It has worked on the platforms since before Shell took over operatorship of the assets after completing the £47 billion acquisition of BG last year.

Sector watchers hope deals that have seen private equity-backed firms such as Chrysaor buying assets majors decided were non-core could mean investment in them increases, providing a boost to the supply chain.

Last week Chrysaor chief executive Phil Kirk said it was already working hard to mature drilling opportunities on the acreage acquired from Shell.

Activity levels fell sharply in the North Sea amid the downturn triggered by the slump in crude prices since 2014.

Hopes the sector may be on the road to recovery have been boosted by the increase in crude prices recorded since major exporting nations agreed last November to curb production to support the market.

Brent crude hit a fresh two year high above $62.50 yesterday after a political shake-up in Saudi Arabia, which some thought might impact investment in oil and gas assets in the country.