COMMENTS by Wood chief executive Robin Watson yesterday add to the evidence that the recovery in the North Sea is becoming established.

Mr Watson noted Wood has seen an increase in activity levels in the area recently with oil and gas firms starting to spend on the kind of facilities upgrades that got shelved during the downturn that started in 2014.

Aberdeen-based Wood noted that activity levels had increased only moderately and from a low base.

Nevertheless the update indicates life has got markedly easier for the firm in the North Sea in recent months.

Mr Watson sounded very bearish about the North Sea market last year, when he presided over the £2.2bn acquisition of Amec Foster Wheeler.

This formed part of Mr Watson’s strategy to make the group less reliant on the area.

Shell and BP have approved significant North Sea developments this year.

Experts reckon it is unlikely we will see a return to the boom conditions of 2013 and 2014, when a range of bumper projects backed by the majors were in progress.

But with the crude price looking set to remain over $60 per barrel there are grounds for believing North Sea activity levels are at least set on an upward path.

Sector watchers will be pleased that Mr Watson stressed Wood expects to have a big North Sea business for years.

Meantimes, with Mr Watson intent on keeping Wood’s headquarters in Aberdeen, the Granite City stands to benefit from the diversification that the takeover of AFW will help the group to achieve.