The plans hope to use Lyness on Hoy as the ‘ideally located’ new base.

Council convener Steven Heddle said “This project has the potential to create significant employment.”

He went on to explain “There will be a growing demand for oil and gas decommissioning facilities in the years ahead4

#”Lyness and the natural deep-water harbour of Scapa Flow, with their location close to the North Sea, are ideally located to serve as a potential base for work of this kind.

“We now look forward to working with the company.

“Our priorities will be to ensure that Orkney benefits economically and that a development of this type is approached in an environmentally responsible manner, in order that we maintain our excellent track record for stewardship of our local environment and the seas around us.”

It was predicted at a major offshore conference in aberdeen last year that the decommissioning industry could be a new beginning for the struggling UK oil and gas economy.

Costs for retiring end of life platforms are thought to cost tens of billions, money which could go straight to local economies if steps are taken to make the UK a centre for decommissioning.