North Sea platforms contract boost for Wood

WOOD has won a $13 million (£10m) contract to support an oil giant’s efforts to recover 11 million additional barrels from a North Sea field.

The Aberdeen-based engineering group will be employed by Equinor to complete modifications to two production platforms in the Norwegian North Sea.

Wood said on completion of the project production from the Vigdis field will be increased by almost 11 million barrels.

The contract win provided a vote of confidence in Wood from an important player in what is a key market for the company.

The company said the win supported its strategic focus on solidifying its position as a modifications service provider in Norway.

Wood developed a big modifications business in the UK North Sea. However, the market for that kind of work shrank amid the crude price plunge that started in 2014.

Under chief executive Robin Watson, Wood has been trying to win more business in overseas markets and in other engineering disciplines.

In August Mr Watson said Wood had seen an encouraging if modest increase in North Sea activity amid the partial recovery in the crude price since late 2016. In December Wood said the crude price fall since October could dampen any recovery

The contract with Equinor will involve Wood modifying the Snorre A and B platforms, which handle output from the Vigdis field.