John Wood Group PLC (LON:WG) has been hired by Centrica Plc’s (LON:CNA) Spirit Energy to deliver ‘late life solutions’ to the Morecambe Bay gas fields.
Under a US$130mln, five-year contract the company will provide services to manage and optimise production and extend the operating life of the gas assets.
“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,” said Craig Shanaghey, Wood Group president of operations for Europe, Middle East and Africa.
“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.”
John Cowie, an asset director for Spirit, added: “The Morecambe Hub has produced gas for the UK for more than 30 years, and remains a key asset in our portfolio as we continue to maximise economic recovery from the area.
“There is still more we can do to extend Morecambe’s field life while reducing its emissions and contribute to the UK’s Net Zero targets, and we look forward to working with Wood on both of these goals.”
British Gas owner Centrica owns a controlling 69% stake in Spirit though it has recently sought to divest or exit the exploration and production business.
Wood Group noted that the Morecambe contract would employ around 130 people across the offshore assets, onshore terminal and a small support team in Aberdeen.