North-east energy giant Wood Group has secured a new $250 million contract to provide operating services to the North Sea’s crucial Central Area Transmission System (Cats).
Subject to approvals, the potential 10-year deal with Antin Infrastructure Partner will see Wood Group PSN act as duty holder of the Cats terminal and pipeline and take on day-to-day responsibility for operations.
A dedicated Wood Group Kenny team based in Glasgow will be integrated into the team to provide pipeline management expertise.
Cats transports gas from the Central North Sea through a 404km pipeline to a terminal in Teesside, where it is processed on behalf of the major producers.
The system currently serves 34 producing fields and accounted for the transportation of 13% of UK domestic gas production.
The contract award follows Antin’s move to acquire BP’s share of Cats, taking its interest to 99%.
“This partnership enables us to extend our existing duty holder capabilities and expertise into new markets,” said Wood Group PSN UK managing director James Crawford:
“We have already established a strong relationship with Antin IP, and we are looking forward to working with them to grow and develop Cats.”
Details of the tie-up came as Wood Group issued a pre-close trading update for the six months to June 30. The statement said first-half financial performance fuller details of which will be made public in August would be down on the year previous.
However, the company said the full half-year results would demonstrate the “resilience and flexibility” of Wood’s “asset-light” business model and the above-target impact of the cost-saving measures it had introduced in recent months.
Overall, Wood said full-year financial guidance was unchanged and remained broadly in line with analyst consensus.
Meanwhile, BP and its joint venturers ConocoPhillips, Chevron and Shell yesterday hailed a milestone at Clair Ridge, the multi-billion-pound extension of the extension Clair field west of Shetland.
The oil major, which has the largest single holding in the development at 27.6%, said the first new topsides modules had been safely installed as the build-out of two new bridge-linked platform and associated pipeline infrastructure progresses.
The platform comprises three modules the quarters and utilities deck, power generation unit and the living area and its installation and hook-up has involved more than 600 workers.
The production and drilling platform topside will be installed next summer, with production due to begin in 2017.
BP North Sea regional president Trevor Garlick said: “The safe installation of these three topside modules is a fantastic achievement by the project team. In a challenging time for the industry, this project shows the potential of our basin and why it is so important that we work to ensure a competitive future business.”
Clair Ridge is expected to produce 640 million barrels of oil over the projected 40-year lifespan of the field.