Talisman Energy (UK) has awarded Wood Group PSN £500 million of North Sea contracts, it has been announced.
Under the terms of a new five-year contract, which includes an option to extend for a further five years, Wood Group PSN will provide operations and maintenance services on all 11 of Talisman's UK offshore assets and at the Flotta Oil Terminal on Orkney. The contract will be worth £90 million per annum and will begin today.
Talisman has also extended Wood Group PSN's existing engineering & modifications services contract, worth £50 million per annum, until the end of 2012.
Talisman Energy (UK) operates the Arbroath, Auk, Bleo Holm, Buchan, Claymore, Clyde, Fulmar, Montrose, Piper B, Saltire and Tartan fields in the North Sea and Flotta Oil Terminal.
Wood Group has approximately 1,400 personnel working under the contracts with Talisman, with 1,100 based on Talisman offshore assets and onshore sites and 300 based onshore in Aberdeen and Glasgow.
Commenting, CEO of Wood Group PSN Bob Keiller said: "We are delighted that Talisman has chosen to continue its long term relationship with Wood Group PSN. This decision reflects the company's successful delivery of Talisman's requirements over the last eight years. We will build on this success by supporting Talisman in delivering its Operational Excellence strategy to assure both our long term futures in the North Sea.”
Geoff Holmes, senior vice president of Talisman Energy (UK), said: "This is a significant piece of the jigsaw in terms of delivering improved safety and operational performance at our 12 Talisman UK sites. Wood Group PSN's expertise is providing highly competent maintenance and operations personnel and the award of a contract of this duration demonstrates the confidence we have in Wood Group PSN's proven capabilities.
“Coupled with our recent decision to transfer 170 offshore supervisors from Wood Group PSN to Talisman, which significantly strengthens the site leadership team, this contract will help deliver our long-term strategic goal of safe, efficient production over the next ten years."
Wood Group PSN provides pre-operations, hook up & commissioning, operations & maintenance, engineering, construction, project management, training and decommissioning services to the energy industry. The company employs over 23,000 people in more than 35 countries.
Across the UK, Wood Group PSN has a workforce of almost 7,000 personnel. With offices in Aberdeen, Glasgow, Runcorn and Hull, the company has over 2,900 onshore and approximately 4,000 offshore personnel.
