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Wood Group PSN clinches £60m deal for work at gas terminal

Wood Group PSN clinches £60m deal for work at  gas terminal

Wood Group PSN has landed a contract worth more than £60million for work at the St Fergus Gas Terminal.

Oil giant Shell has hired the Aberdeen-based firm to deliver integrated services at the Buchan site and Fife Natural Gas Liquids Plant. The deal – which starts next April – continues a contract that started in 2007 and keeps more than 500 people in work.

The extension is believed to be worth about £62million over two years.

Since the acquisition of Pyeroy Group, Wood Group PSN will also be providing fabric-maintenance services to the Shell plants as part of the new contract.

Managing director Dave Stewart: “We have been working with Shell for more than two decades and we are delighted to secure this major piece of work.

“This is the first contract where we have built our new fabric-maintenance capability into the work scope.”

The deal also covers project management, engineering, construction, commissioning, maintenance support and supply-chain management services.

It is the eighth North Sea contract extension chalked up by the firm in 12 months, following awards from CNR, Total, Teekey, Ithaca Energy, Nexen, ConocoPhillips and Dana.

Last month, the firm signed a five-year contact with Talisman Sinopec to provide turbine-maintenance support services for 22 Siemens Ruston gas turbines operating on the Buchan, Clyde, Tartan and Flotta installations in the North Sea.

Wood Group GTS will begin worn on the contract next month.

It marks a milestone in the relationship between Wood Group GTS and Talisman Sinopec Energy and follows a 10-year turbine fleet maintenance contract that concludes this year.

The firm announced earlier this month that it was joining forces with Siemens to create a £685million gas turbine super-firm.

The Wood Group will marry the maintenance and power-solutions arm at Wood Group’s GTS division and Siemens’ Turbocare business unit.