Oil & gas services firm John Wood Group has entered into a new “multi-million dollar” operating partner contract in the North Sea.
Under the new agreement, Wood will manage the day-to-day operation of the Scottish Area Gas Evacuation (SAGE) system, which transports gas through a 323km pipeline between the northern part of the Central North Sea to a terminal north of Aberdeen, where it is processed on behalf of North Sea gas producers.
The contract closely follows Ancala Midstream’s recent acquisition of Apache North Sea’s interest in the assets.
“We are delighted to be working with Ancala Midstream on these major pieces of infrastructure. This contract strengthens our operating partner portfolio in the UKCS and our commitment is to leverage our broad capabilities, differentiated expertise and innovative solutions to deliver safely and efficiently,” said Robin Watson, Wood chief executive.
Central area contract
Wood is also operating partner for the Central Area Transmission System (CATS) under a $250m contract, awarded in 2015 by CATS Management Limited, a subsidiary of Antin Infrastructure Partners.
CATS is a natural gas transportation and processing system that transports gas through around 400km of pipeline from the central North Sea to a terminal at Teesside.
Wood shares traded 0.44% higher at 11.07 GMT.