Wood Group (J) Regulatory News (WG.)

4 September 2023

Wood and Harbour Energy agree new $330m strategic partnership

Wood, a global consulting and engineering company, and Harbour Energy (Harbour), the UK's largest oil and gas producer, have entered into a new strategic partnership for UK North Sea operations agreeing a new master services agreement (MSA) and associated contracts valued at around $330 million.

Under this new agreement, Wood will provide engineering, procurement and construction (EPC) and operations and maintenance (O&M) services, including digital and decarbonisation solutions, for a number of Harbour's offshore assets critical to UK energy security. 

The strategic partnership will run for an initial term of five years, with five one-year extension options covering Harbour's operated assets, including its J-Area, Greater Britannia Area, Solan and AELE (Armada, Everest, Lomond and Erskine) hubs.

Steve Nicol, Wood's Executive President of Operations, said: "We are incredibly proud to have been selected and trusted by Harbour Energy to partner with them across their North Sea assets. We share a commitment to ensuring safe, reliable and sustainable energy production and are confident our integrated digital solutions and world-leading engineering, operations and decarbonisation expertise will enable Harbour to maximise their investment and ensure the UK continues to have the energy mix it needs.

"We have worked on North Sea assets for more than 50 years and excel in designing and managing the complexity of energy infrastructure while at the same time seeking to minimise associated emissions. This new agreement and new contracts are testament to Wood's role as a trusted technical partner to the energy companies of the future, where our priority is to help our clients deliver the energy the world needs and be able to transition to a low carbon future."

Audrey Stewart, Harbour Energy's Vice President of Supply Chain, said: "Harbour is excited to develop our relationship with Wood and the signing of this contract is an important step forward in establishing our suite of long-term strategic partnerships across our North Sea assets."

This partnership will support the employment of hundreds of people from Wood's Operations business in Aberdeen and offshore across the two EPC and O&M contracts, with further recruitment expected in 2024.

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Note to Editors:

Wood

Wood is a global leader in consulting and engineering, helping to unlock solutions to critical challenges in energy and materials markets. We provide consulting, projects and operations solutions in 60 countries, employing around 35,000 people. www.woodplc.com

Harbour Energy

Harbour Energy is the largest independent UK oil and gas producer. We have a leading position in the UK as well as interests in Indonesia, Vietnam, Mexico, and Norway. Our strategy is to continue to build a global, diversified oil and gas company focused on safe and responsible operations, value creation and shareholder returns. Across our operations we are committed to achieving our goal of net zero greenhouse gas emissions by 2035 with respect to our scope 1 and scope 2 emissions. In addition, we are well positioned to use our existing skills and infrastructure to help deliver the UK's CCS goals and more broadly the country's emissions reduction targets.

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