Shell UK has awarded a $120m (£94.77m) contract extension to engineering and consulting company John Wood Group (Wood) to continue providing brownfield engineering, procurement and construction (EPC) services for its onshore and offshore assets across the UK.
The two-year, cost-reimbursable contract includes the provision of subsea and integrity management services for the Shell UK-operated St Fergus and Mossmorran onshore terminals, as well as the Nelson, Gannet and Shearwater offshore assets in the UK North Sea.
The contract also encompasses EPC services for the “technologically advanced” Penguins FPSO, which is expected to reach peak production of 45,000 barrels of oil equivalent per day.
Wood CEO Ken Gilmartin said: “We are proud to continue our decades-long relationship with Shell in the UK, focusing on the continued delivery of safe, reliable energy supply. The extension is recognition of our people and their commitment to deliver best-in-class outcomes for our clients.”
The new contract scope follows Shell’s resumption of operations at the Penguins field with the Penguins FPSO in the UK North Sea earlier this month.
Natural gas from the field will be transported to the St Fergus gas terminal via the existing pipeline.
The St Fergus gas plant near Peterhead in Scotland plays a crucial role in the UK’s energy infrastructure.
It processes oil and gas from various offshore platforms and fields, supplying the national grid for power generation and exporting natural gas liquids (NGL) to the Shell Fife NGL plant in Mossmorran, Fife.
The contract extension is set to be supported by a workforce of approximately 240 Wood employees.
In August 2023, Wood secured a three-year enterprise framework agreement to deliver engineering, procurement, consulting and project management services for Shell greenfield and brownfield projects.
