4th Sep 2023 09:23
(Alliance News) - John Wood Group PLC on Monday said it has agreed a new strategic partnership with Harbour Energy PLC to provide engineering, maintenance and other operational services.
John Wood, an Aberdeen, Scotland-based engineering and consulting business, said it and Harbour agreed a master services arrangement and associated contracts valued at approximately USD330 million.
John Wood said it will provide engineering, procurement and construction services, and operations and maintenance services, for "a number of" the London-based oil and gas company's offshore assets in the UK North Sea.
Audrey Stewart, Harbour's vice president of supply chain, said the deal was "an important step forward in establishing our suite of long-term strategic partnerships across our North Sea assets".
Harbour also has interests in Norway, Indonesia, Mexico and Vietnam.
John Wood said Harbour's North Sea assets are "critical" to the UK's energy security, and Wood's O&M services will include digital and decarbonisation solutions.
Steve Nicol, Wood's executive president of operations, said the company was "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".
The partnership will run for an initial five-year term, with five one-year extension options covering Harbour's operated assets. This will include its Greater Britannia Area and J-Area hubs, its largest and second largest producers in 2022.
John Wood shares were up 1.3% at 158.30 pence in London on Monday morning. Harbour Energy shares were up 1.2% at 256.70p each.
By Emma Curzon, Alliance News reporter
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