Wood and Harbour Energy ink $330m deal for UK North Sea operations
In a major development for the UK energy sector, Wood and Harbour Energy, the UK’s largest oil and gas producer, have entered into a strategic partnership. The new master services agreement (MSA) and associated contracts, valued at around $330 million, signal a significant investment in the UK’s North Sea operations.
Wood to Provide Comprehensive Services for Harbour’s Offshore Assets
Under this multi-faceted agreement, Wood will deliver engineering, procurement and construction (EPC) services, along with operations and maintenance (O&M) offerings. Additionally, Wood will integrate digital and decarbonisation solutions across several of Harbour’s offshore assets that are crucial to UK energy security. The focus will be on Harbour’s key operated assets, namely the J-Area, Greater Britannia Area, Solan, and AELE (Armada, Everest, Lomond and Erskine) hubs.
Wood and Harbour Energy sign $330m deal for UK North Sea operations. Photo courtesy of John Wood Group PLC.
Five-Year Term with Extension Options for Strategic Partnership
The initial term of this high-value strategic partnership will span five years. It also includes five one-year extension options, further strengthening Wood and Harbour Energy’s long-term commitment to North Sea oil and gas operations. Steve Nicol, Wood’s Executive President of Operations, expressed pride in the partnership and emphasized their shared dedication to “safe, reliable and sustainable energy production.”
Commitment to Employment and Sustainable Energy
This new partnership promises to generate employment opportunities, supporting hundreds of people from Wood’s Operations business in Aberdeen and offshore. Further recruitment is expected to unfold in 2024. Audrey Stewart, Harbour Energy’s Vice President of Supply Chain, hailed the deal as a significant step in establishing long-term strategic partnerships for North Sea assets.
Aligned with Decarbonisation and Digital Transformation Goals
Both Wood and Harbour Energy underscore their commitment to minimizing emissions and optimizing digital solutions. The deal serves as a testament to Wood’s role as a trusted technical partner in leading energy transitions towards a low-carbon future.
The strategic partnership between Wood and Harbour Energy not only bolsters the UK’s energy security but also sets a precedent for sustainable and digital innovations in the energy sector.