Wood Group Wins NOK 500 Mln Engineering Modifications Contract From Statoil

(RTTNews) - Energy services company John Wood Group Plc (WDGJF.PK, WG.L) Friday said it has been awarded a contract by Norwegian energy firm Statoil ASA (STO), on behalf of Gassco, for engineering modifications and upgrades to its Kollsnes process plant, west of Bergen, Norway.

The estimated value of the contract, including options and procurement, is more than 500 million Norwegian kroner.

The Kollsnes plant is owned by Gassled. Gassco is the operator and Statoil is the technical service provider.

The company said the contract scope includes front-end engineering design, procurement and management assistance to expand plant capacity and engineering, procurement and management assistance or EPma to update the electrical, instrumentation and control systems.

Wood Group Mustang Norway started work earlier this month on the project, which will last through 2017.

The Kollsnes plant processes natural gas from the Troll, Kvitebjørn and Visund fields in the North Sea and currently provides almost 40 percent of Norwegian gas deliveries.

These modifications will expand its capacity to accommodate increased production from the Kvitebjorn platform in the North Sea. Once the modifications are complete, the Kollsnes facility will be one of the largest gas processing plants in the world, with capacity to process 144.5 million cubic metres per day of gas. It will help to ensure the commitments Statoil has of gas deliveries to Europe.