Wood Group Lands Engineering Gig at BP's Quad 204 Proj.

- Wood Group Lands Engineering Gig at BP's Quad 204 Proj.

Wednesday, September 07, 2011
John Wood Group plc

Wood Group Kenny has been appointed by BP to provide engineering design and project management services for the subsea, umbilical, riser and flowline (SURF) infrastructure for BP's Quad 204 redevelopment project West of Shetland. Wood Group Kenny is responsible for the design of $1.2 billion worth of subsea, pipeline and riser infrastructure for the project. The dedicated engineering team is already 50 strong and will expand to 75 in the near future.

Mike Ogden, Wood Group Kenny's project manager for Quad 204 said, "This project presents significant technical challenges integrating new infrastructure within an existing brownfield development. Specific issues include proving the remaining or extended design life of existing systems, challenging metocean conditions and the inclusion of 21 new risers, 15 new flowlines, a range of structures, a re-designed umbilical distribution and control system and 25 new wells into a restricted area already containing 52 wells. WGK are responsible for engineering the entire SURF system from the trees to the connections within the new FPSO and supporting BP through the delivery, testing, installation and commissioning of these systems."

Andrew Train, BP's Project Director, Offshore Activities said, "The recent sanction of the Quad 204 project represents a very significant investment for BP and its Partners in the North Sea. While the industry at large has been aware of the replacement FPSO, the scale and complexity of redevelopment associated with the subsea system has gone relatively unnoticed. In many ways it is likely that redevelopment of the subsea system will be larger than the original development scheme. To manage a project of this scale and complexity and attract the best talent in the industry we have co-located a growing BP and Wood Group Kenny team in a project office in the center of Aberdeen. This office will be a hub of activity allowing detailed design work to be progressed by Wood Group Kenny and facilitate interaction with key suppliers and contractors."

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Northern Starts Extended Well Test at Markwells Wood

- Northern Starts Extended Well Test at Markwells Wood

Wednesday, September 07, 2011
Northern Petroleum plc

Northern Petroleum has started operations for an extended well test of the Markwells Wood oil discovery in West Sussex. The test will enable Northern Petroleum and its joint venture partners - Magellan Petroleum (UK) Limited and Egdon Resources U.K. Limited - to evaluate the potential and scheme for future development of the Markwells Wood oil accumulation.

The Workover rig arrived on site on Tuesday, September 6, 2011. The production string is being installed prior to the installation of testing facilities to enable testing operations to begin in early October 2011.

Production testing may take 40 days and will utilize a Linear Reciprocal Pump that has a lower height profile, lower noise emission and a smaller footprint than the more traditional 'Nodding Donkey' pump.

Depending on the results of those initial tests, acid stimulation may be applied to the reservoir formation.

Interests in License 126 are as follows:

• Northern Petroleum (GB) Limited 50%
• Magellan Petroleum (UK) Limited 40%
• Egdon Resources U.K. Limited 10%

Derek Musgrove, the Managing Director of Northern Petroleum stated, "Oil was encountered during the drilling of Markwells Wood towards the end of 2010. A core sample in the Great Oolite reservoir formation was successfully recovered and subsequently subjected to many laboratory tests. These established petrophysical characteristics of the formation and preferred stimulation treatments if required. Following completion of this work, the current program was designed and contracts issued."

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Wood Mackenzie Reviews Recovery of Production in Libya

- Wood Mackenzie Reviews Recovery of Production in Libya

Friday, August 26, 2011
Wood Mackenzie

Following recent events in Libya, Wood Mackenzie has reviewed its analysis of how long it could take for a recovery of oil and gas production. One of the key issues in this respect is how quickly the National Transitional Council (NTC) can stabilise the security situation across the country.

• It is too early to expect a material recovery in Libya's oil and gas production. "Once a resolution is reached, we believe it will take around 36 months for oil production to recover to the pre-conflict level of 1.6 million barrels a day (b/d). It may be possible, however, for up to 600,000 b/d to be restored within three months assuming a swift end to hostilities, and an early focus by the NTC and international community on stability and infrastructure repair," said Ross Cassidy, North Africa Upstream Research Analyst for Wood Mackenzie.
• Wood Mackenzie's global gas research shows that gas production could take less time to recover. Eight billion cubic meters of gas per year is contracted from Libya to Italy, with Eni as primary off-taker selling to customers in Italy. The Greenstream gas pipeline routes gas from Eni-operated fields in Libya to Italy.
• Massimo Di-Odoardo, European Gas & Power Research Analyst for Wood Mackenzie says, ”The Italian market is presently oversupplied with gas and Eni has had to delay off-take obligations from other suppliers because insufficient market is available. During the Greenstream outage, Eni increased off-take of Russian pipe gas supplies therefore, resumption of Greenstream will add gas to an already oversupplied Italian market with implications for downside price risk and reduced flows of pipe gas from other suppliers, notably Russia. It could take as little as three months to restart Greenstream supply and reach pre-crises production levels, however the time to resume supply will depend on local security and the state of infrastructure.”
• Wood Mackenzie estimates that it will take around 36 months for the country to recover its full production capacity, from whenever the current crisis reaches a resolution. This depends on the scale of damage to oil infrastructure being limited, swift removal of international sanctions and the timely return of international oil companies and foreign workers.
• The Libya state-owned National Oil Company (NOC) and the international industry will have to work in partnership to repair facilities, re-start production and ramp-up to pre-crisis rates. Production recovery is likely to vary by basin. It will take longer in the mature and complex Sirte basin, in eastern Libya, which is the foundation of Libyan production, than in the more modern and less complex fields of the Murzuk and Pelagian Shelf basins, of western Libya.
• Substantial oil volumes could be back in the market by late 2012, if a resolution is achieved by the end of 2011. But the recovery period will extend if production remains shut-in for longer, as infrastructure continues to deteriorate. There is unlikely to be any increase in production or re-start of exports, whilst Libya's oil infrastructure is open to sabotage by either side.
• In the longer-term, the production outlook will be largely dependent on the nature of the outcome to the conflict and its political fallout. Libya has the potential to produce up to 3 million b/d of oil and become a major gas exporter through partnering with the international industry, who will bring finance, skills and technology to existing fields. But, for now, this brighter future remains on hold until military operations are concluded.

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Wood Group Secures 2-Year Frame Agreement with Shell Canada

- Wood Group Secures 2-Year Frame Agreement with Shell Canada

Thursday, July 14, 2011
Wood Group

IMV Projects, a Wood Group company, has been awarded a two-year frame agreement by Shell Canada Energy to provide engineering, procurement and project management services to Shell's upstream oil & gas projects in Western Canada.

IMV Projects has worked for Shell since 2004, executing a variety of new projects in Western Canada and offshore Alaska, including the project management, engineering, procurement and construction management of the grass-roots 20,000 BOPD Orion steam-assisted gravity drainage (SAGD) facility.

"At IMV Projects, we recognize that our clients' success depends on our ability to understand their project objectives and to meet exceptional standards of quality and efficiency," stated Kevin O'Brien, president of IMV Projects. "We have worked closely with Shell Canada to align with their business model and corporate goals and are pleased to be extending our relationship."

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Wood Group Awarded Commissioning Services for Chevron's Big Foot Facility

- Wood Group Awarded Commissioning Services for Chevron's Big Foot Facility

Thursday, July 07, 2011
Wood Group

Wood Group has been granted a multi-million dollar, three-year contract by Chevron U.S.A. Inc. to commission the Big Foot extended tension leg platform (E-TLP) in the deepwater Gulf of Mexico. Work will be performed by DSI, Wood Group PSN's commissioning services business.

DSI's scope of work covers the full commissioning process, from development of procedures, through inspection and testing of every operational component at the South Texas fabrication yards and offshore, to the final hand-over of systems to Chevron.

Big Foot is the eighth TLP/ETLP DSI has commissioned worldwide and is the fifth facility commissioned for Chevron, including the Jack & St. Malo semi-submersible platform in the deepwater Gulf of Mexico, which DSI is currently commissioning.

"Commissioning is critical to the safe start-up of a production facility, proving the integrity and reliability of all safety and operating systems," stated Trey Lambert, president of DSI. "Chevron can rely on DSI to provide safe, consistent and quality commissioning services across its projects."

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Wood Group Wins Contract for Chevron's Jack/St. Malo Facility

- Wood Group Wins Contract for Chevron's Jack/St. Malo Facility

Thursday, June 02, 2011
Wood Group
by SubseaIQ

Wood Group has been granted a multi-million dollar, 42-month contract by Chevron U.S.A. Inc. for the planning, managing and field execution of commissioning for the Jack/St. Malo semi-submersible hub production facility. Work will be performed by DSI, Wood Group PSN's commissioning services business.

The Jack/St. Malo platform will be installed in 7,000 feet of water in the Walker Ridge section of the US Gulf of Mexico and will have an initial design capacity of 170,000 barrels per day of oil.

DSI's commissioning will be performed at a South Texas fabrication yard where the topsides will be fabricated and integrated with the hull, and offshore, during final installation and start-up

DSI has commissioned four other deepwater Gulf of Mexico semi-submersibles, including two that had designs similar to that of Jack & St. Malo. DSI's work for Chevron has included commissioning of the Tahiti spar in the Gulf of Mexico and the South Nemba Enhanced Recovery Project offshore Angola.

"Project commissioning proves the integrity and reliability of all operating and safety systems on a production facility prior to hydrocarbon start-up. Commissioning must be delivered to the highest quality in the deepwater Gulf of Mexico today," stated Trey Lambert, president of DSI. "We look forward to providing these critical services for Jack/St. Malo and to extending our relationship with Chevron."

Wood Group has supported the Jack & St. Malo project throughout its development. Mustang is conducting detailed design for the Jack/St. Malo topsides facilities and the integrated control and safety systems, and J P Kenny is performing detailed design for the deepwater oil export pipeline.

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EnerMech Bags Wood Group Contract

- EnerMech Bags Wood Group Contract

Wednesday, June 01, 2011
EnerMech Ltd.

EnerMech has secured a £20 million ($32.9 million) contract to supply tools and rental equipment to Wood Group PSN. The five year contract covers the UKCS and 12 jobs will be created by the Aberdeen company as a result of the contract win.

The deal includes the supply and rental of plant and equipment, including generators, air compressors and lifting and rigging equipment, the supply of hand tools and consumables and the repair, service, maintenance and storage of Wood Group PSN owned equipment.

EnerMech has invested £1.5 million ($2.5 million) on new air compressors, generators and tools and spent a further £400,000 on a new workshop at their Scottish headquarters to service the contract.

Doug Duguid, managing director of EnerMech, said his company's commitment to investing significant capital in new equipment and site facilities was a major driver in securing the contract, the largest in the firm's three year history.

Mr. Duguid said, "Our policy of continual investment in new equipment, technologies and in the latest interactive web-based systems which give clients 24-7 visibility of their assets, gives us a clear advantage over competitors.

"We have completed some ad-hoc work on behalf of Wood Group in the past but this deal signals what I hope will be the start of a long and mutually beneficial relationship, which should offer up further opportunities for both companies.

"Winning this award is a clear indication that Wood Group PSN trusts us to provide a high quality service, delivered by first class personnel and backed up with our extensive on-site facilities which are second to none in the north east of Scotland."

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Wood Group Lands Engineering, Design Gig for Tamar Platform

- Wood Group Lands Engineering, Design Gig for Tamar Platform

Thursday, May 26, 2011
John Wood Group plc

Wood Group's Alliance Engineering has been awarded a contract to provide detailed engineering and design services for the Tamar Platform Project, including topsides facilities and deck structure, to be located offshore Israel. The Tamar natural gas field will be operated by Noble Energy and is located offshore Israel in the eastern Mediterranean Sea's Levantine Basin.

The Tamar platform will be located in approximately 800 feet of water and will be designed to process 1.2 billion standard cubic feet of gas per day. The Tamar field is estimated to contain 8.4 trillion cubic feet of gas and will be produced through several subsea wells connected to the platform by 150 km long flow lines. The planned single-lift topsides facility will have four deck levels and will weigh nearly 10,000 tons when completed.

"We are very excited to be working for Noble Energy on this international gas field development," said Edmund Lunde, president of Alliance. "Alliance is committed to execution excellence in its projects and we are honored Noble Energy has given us this opportunity to showcase our capabilities."

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GE Concludes Acquisition of John Wood Group's Well Support Division

GE Concludes Acquisition of John Wood Group's Well Support Division

Tuesday, April 26, 2011

GE O&G

GE has completed the strategic acquisition of John Wood Group PLC's Well Support Division, expanding GE Oil & Gas' extensive drilling and surface manufacturing and services portfolio.

The John Wood Group PLC Well Support division, which has over 3,800 employees globally and operates approximately 20 manufacturing and multiple sales and service centers worldwide, is comprised of three business platforms – ESP (electric submersible pumps), Pressure Control (surface wellheads and trees) and Logging Services - which, combined, recorded 2010 revenues of $947 million.

The $2.8 billion transaction enables GE to capitalize on the fast-growing demand for enhanced oil recovery from mature oil fields using downhole pump 'artificial lift' in brownfield developments; as well as, expanding GE's high-technology product and service offering in unconventional oil and gas production, with significant applications for shale gas production.

Claudi Santiago, President and CEO, GE Oil & Gas said, "Given the reliability and quality of its technology and the expertise of its employees, the Well Support division is an excellent addition to GE Oil & Gas, strengthening our engineering capabilities and our extensive suite of advanced capital drilling and production solutions. Combined with our integrated portfolio, global supply-chain and footprint, the Well Support division adds further value for our customers and enhances GE's position in rapid growth oil and gas industry segments and regions."

Jim Renfroe, the CEO of Wood Group PLC's Well Support Division, said, "We are delighted to become part of the GE Oil & Gas family. The transaction positions GE Oil & Gas firmly to lead a new chapter in oil and gas unconventional production, expanding our combined customer base and providing significant new channels for advanced high-tech equipment and services around the world."

Wood Group Kenny Lands Browse LNG Gig

Wood Group Kenny Lands Browse LNG Gig

Thursday, April 14, 2011
Wood Group

Wood Group Kenny has been awarded a contract to support the Browse liquefied natural gas (LNG) development located offshore in Western Australia's Kimberley region, approximately 425km northwest of Broome.

Leading international subsea engineering company, J P Kenny Pty, together with its related Wood Group Kenny sister companies, will perform subsea and pipelines front end engineering design (FEED) for Browse. The FEED project commenced in February 2011 and will take place over the next 12-15 months based at the new Browse Project office in Perth. The first gas from Browse is expected in 2017.

Wood Group Kenny is also participating in the riser FEED work for Browse, through MCS Kenny, and will support Aker Solutions in delivering design and engineering solutions for the steel catenary risers (SCRs) on Browse.

Steve Wayman, CEO, Wood Group Kenny said, "We are delighted to be working with Woodside on the highly prestigious Browse development. This is a technically demanding and complex deepwater development that will enable us to demonstrate our continuing commitment to excellence in international offshore projects."

Morgan Harland, subsea and pipelines manager for Woodside Energy said, "Browse is one of the largest offshore developments currently being undertaken worldwide. Wood Group has significant subsea and pipeline engineering skills and expertise and we look forward to working with Wood Group and our partners on the successful completion of these important engineering contracts."

Wood Group Awarded Services Agreement for Brownfield Project

Wood Group Awarded Services Agreement for Brownfield Project

Tuesday, April 05, 2011

Wood Group

Wood Group has been awarded a non-exclusive major services agreement by Woodside Energy Limited for brownfield project delivery for a number of Woodside's onshore and offshore facilities.

The services comprise a wide range of engineering, from studies and concept, through to design and implementation for Woodside's Production Project Group (PPG). The contract has an initial three-year term with three one-year extension options.

This award builds on Wood Group's recent success in November 2010 when the Group secured a separate three-year engineering services agreement with Woodside's Projects Development Group.

"We are delighted to have been awarded this contract by Woodside, as it provides the opportunity to further expand our delivery of engineering and implementation services to Woodside, the largest oil and gas operator in Western Australia," said Les Thomas, Board director responsible for Wood Group's Production Facilities business. "These awards further endorse Wood Group's strategic intent for continued expansion in Australia."