John Wood Group PLC has secured several contracts worth a combined $330 million from Harbor Energy PLC under a strategic partnership agreement for the latter’s operations on the UK side of the North Sea.
According to the deal, called a master services agreement, “Wood will provide engineering, procurement and construction (EPC) and operations and maintenance (O&M) services, including digital and decarbonisation solutions, for a range of offshore assets from Harbor critical to UK energy security”. Wood said in a recent press release.
“The strategic partnership will have an initial duration of five years, with five one-year extension options covering Harbour’s operating assets, including its J-Area, Greater Britannia, Solan and AELE hubs (Armada, Everest, Lomond and Erskine)”. .
AELE Harbor’s 2023 agenda includes areas of well intervention and the maturation of a potential infill opportunity at the North West Seymour appraisal well, according to information on the company’s website. Armada, Everest, Lomond and Erskine had a combined average production of 27,000 barrels of oil equivalent per day (boepd) last year, according to site data.
Harbor is the operator of the Armada group of fields, the Everest platform and the Lomond platform with a 100 percent interest in each of the three assets. The Erskine gas field is a non-operated asset in which it has a 32 percent interest.
In the Great Britain Area (GBA), which produced an average of 31,000 boepd in 2022, Harbor plans to resume drilling at the Callanish field in the second half of this year and evaluate another discovery at the Leverett field to tie into the GBA infrastructure. “Harbour is also maturing further exploration and appraisal opportunities in the area, as well as a potential infill opportunity at Brodgar targeting an area to the east of the field,” the company says on its website.
Harbor operates four assets in the GBA: the Britannia platform with a 58.7 percent interest, the Brodgar field with a 93.75 percent interest, the Callanish field with an 83.5 percent interest and the Enochdhu field with a 50 percent interest . It also has a 26.3 percent non-operated interest in the Adler field project.
In the J Area, Harbour’s second largest production contributor last year at 30,000 boepd, development drilling is expected in the Talbot field and the Jocelyn South exploration well this year. Aimed to begin production in 2024, the Talbot project consists of a subsea tie-in of several wells at the Area J facility, according to website information.
Harbor operates the Jade field with a 67.5 percent interest, the Jasmine field with a 67 percent interest and the Judy field with a 67 percent interest. Talbot is operated by Chrysaor Petroleum Co. UK Ltd. with a 36.5 percent stake, while Chrysaor Ltd. has 30.5 percent. Both companies are wholly owned indirect subsidiaries of Harbour.
Wood’s chief operating officer Steve Nicol said in a statement that Wood is “confident that our integrated digital solutions and world-leading expertise in engineering, operations and decarbonisation will enable Harbor to maximize its investment and ensure that the UK continues to have the energy mix it needs.”
“We have worked on North Sea assets for over 50 years and excel at designing and managing the complexity of energy infrastructure while seeking to minimize associated emissions,” Nicol added.
Harbour’s vice president of supply chain, Audrey Stewart, commented that “the signing of this contract is an important step forward in establishing our suite of long-term strategic partnerships across our North Sea assets.”
Wood said the execution of the contracts would employ hundreds of people at its operations business in the Scottish city of Aberdeen, with more expected to be hired next year.
To contact the author, please email jov.onsat@rigzone.com
