Wood and Harbour Energy Forge $330 Million Partnership in the UK North Sea
Posted 04/09/2023 10:45
In a significant development, Wood and Harbour Energy have joined forces to establish a strategic partnership focused on operations in the UK North Sea. This transformative collaboration is valued at approximately $330 million and encompasses a comprehensive master services agreement (MSA) alongside associated contracts.
Under this agreement, Wood will take on crucial roles, including engineering, procurement, construction (EPC), and operations and maintenance (O&M) services. Furthermore, the partnership will incorporate digital and decarbonization solutions, aligning with the industry's evolving needs and environmental priorities.
The partnership's initial term is set at five years, featuring the flexibility of five one-year extension options. These extensions encompass Harbour Energy's operated assets, encompassing the J-Area, Greater Britannia Area (GBA), Solan, and AELE (Armada, Everest, Lomond, and Erskine) hubs.
Steve Nicol, Wood's Executive President of Operations, expressed the shared commitment to safe, reliable, and sustainable energy production. He emphasized the role of integrated digital solutions and Wood's world-renowned expertise in engineering, operations, and decarbonization. This partnership aims to facilitate Harbour Energy's investment optimization while ensuring the UK's energy mix aligns with future sustainability goals.
Nicol underlined Wood's extensive experience in the North Sea, spanning over five decades, during which they have managed intricate energy infrastructure projects while prioritizing emissions reduction.
He emphasized that this agreement underscores Wood's pivotal role as a trusted technical partner for future energy companies, focusing on delivering the world's energy requirements while transitioning to a low-carbon future.
Audrey Stewart, Harbour Energy's Vice President of Supply Chain, expressed excitement about strengthening their relationship with Wood. She noted that this contract represents a significant step in establishing long-term strategic partnerships across their North Sea assets.
This collaboration will bolster employment prospects for hundreds of individuals within Wood's operations in Aberdeen and offshore. The company also anticipates additional recruitment in 2024, further contributing to the regional workforce.
Wood's Growth and Industry Standing
Wood has demonstrated impressive growth and industry relevance, with a workforce increase of 5%, totaling 35,600 employees, according to its half-year trading update in July. This expansion can be attributed to significant contract wins. As of the end of June, Wood's order book stood at an impressive $6 billion.
This new partnership between Wood and Harbour Energy signifies a dynamic step forward in the UK North Sea energy landscape, blending their expertise to drive sustainable, reliable, and innovative energy production while creating employment opportunities and contributing to a low-carbon future.