THE River Tyne could be in line for a major jobs boost, if Swan Hunter wins a new order for a North Sea oil platform.

The Wallsend shipyard is understood to be close to completing a deal with US oil company Kerr McGee to build a 500-tonne floating oil platform for the North Sea.

The news, which would create 500 jobs at the yard, comes as Swans is completing a contract with the US firm for an oil vessel for use in the Leadon field of the North Sea.

That vessel is due to be unveiled today at an event attended by Brian Wilson, Minister of State for Industry and Energy.

The new deal would be a piece of good news for the Tyne, which has recently seen the mothballing of the Cammell Laird yard at Hebburn on South Tyneside.

The GMB union's regional officer, Kevin Curran, who has had to deal with the problems at Cammell Laird, is delighted at the news.

He said: "I have heard about the contract with Kerr McGee which could mean another 500 jobs. It is a very welcome development."

As well as current work for Kerr McGee, Swan Hunter is working on a £130m Ministry of Defence contract to build landing vessels.

The contracts represent a turnaround in fortunes for the Wallsend shipyard.

Only six years ago, the shipyard was in receivership, but it is now a flagship for industry on the Tyne, and supports thousands of jobs in smaller firms in the region.