(Alliance News) - John Wood Group PLC on Tuesday said it has entered into a five-year agreement with Spirit Energy Ltd, a subsidiary of British Gas-owner Centrica PLC, to deliver late-life solutions for the Morecambe Bay gas fields in the UK.
The Reading, England-based oilfield services provider said the agreement with Centrica, based in nearby Windsor, is valued at USD130 million. It will involve John Wood using its experience in late-life asset optimisation and management to extend field life, lower costs, and reduce late life carbon intensity across both the Morecambe Bay offshore assets in the East Irish Sea and the Barrow onshore gas terminal on the north-west coast of England.
John Wood said the agreement will employ 130 people across the offshore assets and onshore terminal, as well as a small support team in Aberdeen, Scotland.
"I am delighted to be able to announce our new partnership with Spirit Energy which will see Wood apply our decades of experience in intelligent operations, maintenance and integrity solutions to deliver a sustainable next chapter for the field. Our shared ambition is to leverage the greatest value from the Morecambe Hub in its late-life phase, by focusing on driving down operational costs and creating opportunities to extend field life," said Craig Shanaghey, President of Operations for Europe, Middle East and Africa.
Shares in John Wood were down 4.4% at 333.80 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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