SEVEN hundred new oil jobs are to be created in Aberdeen in further confirmation of the city's status as a booming economy.
The Wood Group, one of the industry's leading firms, will create a total of 1000 jobs with 70% earmarked for the Granite City.
However, there are warnings a serious skills shortage in the energy sector must be addressed.
The Aberdeen-based oil and gas services firm has grown by more than 4000 people in the past year and is looking to hire the new staff over the next 12 months.
Of the 700 jobs for the north east, about 30% will be offshore.
Barney Crockett, the leader of Aberdeen City Council, said he welcomed the jobs announcement, adding: "Business in Aberdeen is booming. The city is attracting a huge amount of national and international interest and investment and is growing at an impressive pace.
"The Wood Group's continued success and creation of 700 new jobs in Aberdeen reflects the general picture in the city. Aberdeen is the UK's opportunity city and a fantastic place in which to invest, live and visit."
The Wood Group's global headcount jumped from more than 38,000 to more than 43,000 in the 12 months to December last year.
The UK accounts for 11,000 with most based in Aberdeen or offshore, with 500 new appointments made in the city in the past 12 months. Now the company is looking to recruit at least another 1000 people in the UK across all its divisions by the end of the year.
Bob Keiller, Wood Group CEO, said: "Wood Group is expanding continuously across the globe. In order to meet strong client demand we have hired more than 4000 people globally in the past year.
"The global oil and gas industry is facing a skills shortage and we are working hard to ensure we have the right talent coming in to our business."
He said that, in the UK, the Wood Group held regular job roadshows, which were attended by thousands. The group invested a great deal in apprenticeships, interns, graduate and military recruitment schemes which targeted people looking for careers in the oil and gas and power generation industries, he said.
"We offer training to people from outside the sector with appropriate transferrable skills so they can develop the new capabilities our sector requires.
"We are also working with schools, colleges and universities to ensure the next generations are aware of the exciting and challenging opportunities we offer to build a long-term career."
James Bream, Aberdeen & Grampian Chamber of Commerce (AGCC) research and policy director, said the announcement demonstrated the confidence the Wood Group had in the North East.
But he added: "Their concerns about the skills shortage echo our findings in the recent AGCC Oil and Gas Survey. However, the oil and gas sector cannot address this by itself.
"Initiatives to recruit from outside the sector and to ensure students were equipped would help to fill this gap and could only serve to boost Aberdeen's place as one of the best places to live and work in the UK."
Mr Bream said to retain talent in Aberdeen, improved infrastructure and investment in housing, culture, leisure and the city was required to secure its status as a globally competitive location.
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