Aberdeen engineering giant to help upgrade key gas plant in Norway

WOOD has won a $42 million (£32m) contract to work on a key Norwegian gas processing plant, which will provide a boost amid the challenges posed by the coronavirus crisis.

The Aberdeen engineering giant has been engaged to provide a range of services on the Kollsnes plant through which 40% per cent of Norwegian gas exports flow.

The win will help Wood in the company’s efforts to reduce its reliance on work on offshore oil and gas exploration and production facilities in the North Sea.

Firms that operate North Sea oil and gas fields are slashing spending in response to the plunge in oil and gas prices triggered by the coronavirus crisis.

The downturn in the North Sea that followed the sharp fall in the oil price from 2014 to 2016 took a toll on Wood.

Under the leadership of chief executive Robin Watson, Wood has been looking to win more work in downstream facilities such as refineries and processing plants.

It diversified into a wider range of engineering markets through the £2.2bn acquisition of Amec Foster Wheeler in 2017.

The company said the Kollsnes award supported its strategic focus on strengthening its position in the onshore energy market in Norway.

It recently won a contract from Norwegian oil and gas giant Equinor to work on the Mongstad refinery.

The Kollsnes plant lies on Norway’s west coast. It handles output from the Troll, Kvitebjørn, Visund and Fram fields in the Norwegian North Sea.

Wood will provide engineering, procurement, construction and installation services in connection with work to increase processing capacity at the plant.

The company worked previously on the design stage of the Kollsnes upgrade.

Source: The Herald

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