28th Jun 2016 14:03
LONDON (Alliance News) - John Wood Group PLC Tuesday said it has been awarded a contract to provide services to the Peregrino field offshore Brazil that is being operated under a joint venture between Norwegian giant Statoil and Chinese conglomerate Sinochem.
The "multimillion dollar contract" will involve John Wood supplying procure, engineering and design for the development of the Peregrino field wellhead platform C to the joint venture company managing the asset, South Atlantic Holding.
Peregino is the largest oilfield to be operated by Statoil outside of Norway and has the capacity to produce up to 100,000 barrels of oil per day. Production started in April 2011 and has already hit that plateau.
Statoil is now developing the Peregrino phase 2 project, which will enable the extension of the economic life of the Peregrino field. The project entails a new well head platform and drilling rig, Platform C, and adds approximately 250 million barrels in recoverable resources to the existing 300.0 to 600.0 million barrels in the field.
Wood Group Mustang, which offers services for energy assets from concept to completion, will conduct the work for Kiewit Offshore Services, a leading fabricator within the industry.
Wood Group Mustang completed the front-end engineering and design for wellhead platform C in 2015 and previously designed wellhead platforms A and B.
"Wood Group Mustang's proven ability to deliver cost-effective and efficient solutions was a key enabler to obtaining the contract," said Michele McNichol, chief executive of the Mustang unit.
Wood Group already has a significant relationship with Statoil, with the pair recently signing a master services agreement for Wood Group to support the lifecycles of Statoil's onshore and offshore facilities.
Wood Group Mustang is currently delivering maintenance and modification services to four Statoil installations on the Norwegian Continental Shelf and Wood Group's other unit, PSN, which focuses on pre-operation services such as commissioning, is also supporting the Peregrino field, providing operations, maintenance and modification services for the existing wellhead platforms, and modification services for the floating production storage and offloading facility.
Wood Group shares were trading up 2.7% to 648.50 pence per share on Tuesday, and is trading 5.6% higher than at the start of the year.
By Joshua Warner; [email protected]; @JoshAlliance
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