Oilfield services company Wood Group has started working on the Scottish Area Gas Evacuation (SAGE) system and Beryl pipeline as an operating partner under a previously signed contract.

Wood will be responsible for managing the day-to-day operations of the SAGE system on behalf of Ancala Midstream Acquisitions as part of the deal.

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Gas will be transported by the system via the 323km-long SAGE pipeline between the northern part of the Central North Sea and the SAGE terminal at St Fergus, which is located north of Aberdeen, UK.

"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."

All recovered gas will be processed at the St Fergus terminal for the North Sea gas producers.

Wood Group chief executive Robin Watson said: “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.

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“We have established a close partnership with Ancala Midstream, using our four decades of North Sea experience to support the smooth and successful transition of asset ownership and operatorship, and we welcome the St Fergus-based team to Wood today.”

The latest contract follows Ancala Midstream’s acquisition of Apache North Sea’s interest in the SAGE assets.

Wood previously secured a $12m front-end engineering design (FEED) contract last month for work on the Honghua Group’s liquefied natural gas (LNG) platform development located in the West Delta area of the Gulf of Mexico.

Wood will finalise the design of the offshore platform-based natural gas liquefaction and storage facility under the new arrangement.

The company has also completed the pre-FEED work for this latest project.