Wood Group added to an impressive run of business deals yesterday, announcing an eight-year contract for work in one of the world’s largest oilfields.
The Aberdeen-based energy service giant said a joint-venture between its Wood Group GTS subsidiary and Kazakhstan company KazTurboRemont (KTR) was supplying “critical” equipment for the huge Kashagan oil and gas development.
Wood Group did not put a value on it, but the scope of the work and the length of the contract means the deal will run into millions of pounds.
Total oil reserves on Kashagan are estimated at around 38billion barrels, of which 10billion may be recoverable. Gas reserves are put at nearly 40trillion cubic feet.
Discovered in 2000, the field is located in the northern part of the Caspian Sea, close to the city of Atyrau, and is considered to be the world’s largest oil discovery in the last 40 years.
But Kashagan has also achieved notoriety as the world’s most expensive and problem-ridden offshore project after a series of delays.
Wood Group said its joint-venture deal with the operator, the North Caspian Production Operating Company (NCPOC), covered the supply of gas and steam turbines, standby diesels, compressors and other vital equipment.
Frank Avery, president of power plant services for Wood Group GTS added: “Working with KTR we will apply our proven experience in the gas turbine market to manage the scope of work for NCPOC.”
KTR general-director Askhat Usserov said: “Under the contract KTR-WG plans to set up a gas turbine component repair facility in Kazakhstan, signalling our ongoing commitment to train local supervisors.”
Wood Group GTS specialises in rotating equipment and services for clients in the power, oil & gas and clean-energy.
The new deal for its joint-venture with KTR comes hot on the heels of another Wood Group business, Wood Group PSN, securing work in Australia worth millions of pounds.
Earlier Wood Group revealed it had expanded its interests across the Atlantic after snapping up Canadian business Sunstone Projects for £7.9million.