UK services player Wood Group won a $61 million contract Thursday from Norway’s Statoil for engineering and upgrading work at a Norwegian gas processing plant.
The contract, awarded on behalf of Norway’s Gassco, covers engineering modifications and upgrades at the Kollsnes processing plant, west of Bergen, Norway.
The Kollsnes plant processes natural gas from the Troll, Kvitebjørn and Visund fields in the North Sea and currently provides almost 40 percent of Norway’s gas deliveries.
The deal includes front-end engineering design, procurement and management assistance to expand plant capacity and engineering, procurement and management assistance to update the electrical, instrumentation and control systems.
The modifications will expand the plant’s capacity to accommodate increased production from the Kvitebjorn platform in the North Sea.
Wood Group said that when the modifications are complete the Kollsnes facility will be one of the largest gas processing plants in the world, with the capacity to process 144.5 million cubic meters per day of gas.
The modification and upgrade work will also help “ensure the commitments Statoil has of gas deliveries to Europe.”
The contract has an estimated value of $61 million, including options and procurement.
Wood Group Mustang Norway started work on the project earlier this month.
Work on the plant is expected to last through 2017.
“Wood Group Mustang’s onshore engineering expertise combined with our knowledge and experience with Statoil is enabling us to provide a competitive technical solution for the Kollsnes plant,” Wood Group Mustang Norway president Otto Søberg said.
Statoil is the technical service provider at Kollsnes.
Gassco is the operator.