Wood Group PSN has been awarded a contract extension from Shell in the UK to deliver midstream engineering and construction services to the St Fergus and Mossmoran gas plants.
The £75 million, two-year contract is effective from April 2012 and includes an option for a further two-year extension. The award is a continuation of the previous contract awarded to Wood Group in 2007.
The Shell Northern Plants consists of the St Fergus gas terminal, the Mossmoran natural gas liquids plant and the Braefoot Bay marine loading terminal, all of which process gas from both the UK and Norwegian sectors of the North Sea. St Fergus removes ethane, propane and liquids and delivers gas to the national grid, while Mossmorran extracts natural gasoline, ethane, propane and butane. The ethane is piped to the Exxon Mobil Fife Ethylene plant, while the propane, butane and gasoline are shipped to market via the Braefoot Bay Marine loading terminal.
The project scope will see Wood Group PSN provide project management, engineering, construction, commissioning and maintenance support, as well as fabric maintenance and supply chain management services.
Wood Group PSN said it would draw on the strength of its teams in Aberdeen, Glasgow and Runcorn to deliver the contract.
Commenting on the news, Robin Watson, UK managing director at Wood Group PSN, said: "We have an established working relationship with Shell that spans two decades and the award of this extension demonstrates Shell's ongoing confidence in Wood Group PSN. The contract enables us to develop our midstream onshore plants business and provide employment for over 500 people.
"Maintaining a focus on continuous improvement ensures we can support Shell's rejuvenation project to extend the life of the plants, and deliver plant modifications and maintenance support programmes. This is evidence of the confidence our clients have in our business."
Wood Group PSN is a provider of pre-operations, hook up & commissioning, operations & maintenance, engineering, construction, project management, training and decommissioning services to the energy industry worldwide. Wood Group PSN employs over 25,000 people in more than 35 countries. In the UK, the company has a workforce of almost 8,000 personnel with approximately 3,000 onshore and 5,000 offshore workers.
