WGPSN scoops first life of field contract in North Sea

11 Jun 2013

June 11, 2013

WGPSN scoops first life of field contract in the North Sea

Wood Group PSN (WGPSN) has secured its second North Sea duty holder contract extension this year. Valued at approximately $200m (£140m GBP), the life of field contract from Ithaca Energy will see WGPSN operate and deliver managed services to the Beatrice offshore platforms and Nigg onshore terminal until the end of their operating life.

This award marks the continuation of a contract WGPSN has retained with Ithaca since 2008.  Situated in the North Sea, the Beatrice field is the largest oilfield in the Inner Moray Firth area. The Beatrice platforms and Nigg onshore oil terminal came on stream in 1981 with an expected 30 year life span. Since taking over the operation, WGPSN has 
delivered asset life extension programmes which have considerably increased the expected asset life of Beatrice and Nigg.

This new contract secures almost 200 UK jobs, primarily offshore, and is one of two UK duty holder contracts maintained by WGPSN. 

Dave Stewart, UK managing director of WGPSN said: 'We are delighted to receive this award and build on the excellent relationship we have developed with Ithaca over the past five years. This is our first life of asset contract globally and is reflective of our capability and expertise to deliver operations services and develop a programme for late life asset management, taking these facilities through operations to the decommissioning phase when the time comes.'

The award follows the multi-million dollar extension to provide duty holder and asset management services for the 
Teekay PJ Hummingbird Spirit FPSO (floating production storage offloading) vessel, announced in May 2013. Situated on the Centrica operated Chestnut field in the North Sea, this was WGPSN's first duty holder contract, awarded in 2008.

In the UK, Wood Group now employs more than 11,000 people working onshore and offshore.

ENDS -

Notes to Editors:

Wood Group is an international energy services company with $6bn sales, employing more than 42,000 people worldwide and operating in 50 countries. The Group has three businesses - Engineering, Wood Group PSN and GTS providing a range of engineering, production support, maintenance management and industrial gas turbine overhaul and repair services to the oil & gas, and power generation industries worldwide.  www.woodgroup.com

Wood Group PSN is a global provider of pre-operations, hook up & commissioning, operations & maintenance, engineering, construction, project management, training and decommissioning services to the energy industry. Employing over 28,000 people in more than 35 countries, Wood Group PSN offers high integrity, brownfield services that support customers to optimise performance, maintain production, reduce operating costs and provide integrity assurance. www.woodgroup-psn.com

Ithaca Energy is a North Sea oil and gas exploration, development and production company with offices in Aberdeen, Scotland. Ithaca's strategy is to appraise and develop existing discoveries employing tried and tested technologies. Ithaca has built a diverse portfolio of development and production assets through acquisition and participation in licensing rounds.

The Beatrice field, in which Ithaca holds a 50% interest, is operated by Ithaca and is the largest oilfield (approximately 485 MMbbls of stock tank barrels of oil initially in place) in the Inner Moray Firth area. Beatrice has produced in excess of 171 MMbbls to date.

The Beatrice platform came into operation in September 1981 and initially had an estimated life of 30 years. The Nigg onshore oil terminal, situated 1.5 miles from Nigg on the Cromarty Firth has been in operation since September 1981 and had a similar expected production life. Through effective operations management WGPSN has helped extend the life of these assets.

For further information contact:

Carolyn Smith, Corporate Communications Director - Eastern Hemisphere, Wood Group
Tel:  01224 851099, email:  carolyn.smith@woodgroup.com

Bobbie Ireland, Corporate Communications Director - Western Hemisphere, Wood Group
Tel:  +1 281 828-3505, email:  bobbie.ireland@woodgroup.com

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