OILFIELD exploration could help sustain hundreds of jobs in the North-East, experts have said.

The Northern Offshore Federation (NOF), which represents 10,000 workers in the region's offshore industry, is monitoring three investigations in the North Sea.

Federation director Geoff Race said: "Recent discoveries indicate that there is reason for optimism - and that these discoveries may well impact upon the supply chain opportunities."

The Chevron Texaco Group recently announced it had made a significant oil and gas discovery off the Scottish coast, on the border between the UK Continental Shelf and the Faroese sectors.

Dana Petroleum is also sinking an exploratory well at Clachnaben, to the east of Shell's Cormorant field, while Shell has contracted Apache to evaluate an oil discovery between the Nelson and Montrose fields, in the area known as the UK Central North Sea.

The NOF is based in Washington, Wearside, and has 220 member companies.

Mr Race said: "The North Sea offshore industry has been called a sunset industry, but we believe there are good reasons for optimism.

"It is certainly a mature province, but we would by no means write it off."

During the offshore boom of the 1980s, there were about 140 wells sunk a year. This fell to a handful in the 1990s, but has risen again to about 50 a year.

Mr Race said: "Although the industry may not return to the halcyon days of the 1980s, it would appear, on the face of it, that these discoveries are significant."