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The Herald Scotland
07-05-2025
- Business
- The Herald Scotland
Aberdeen oil services group Wood issues major North Sea news
The company announced this morning that its securing of the 'trio of reimbursable contract extensions' would see it continue to deliver operations and maintenance solutions for Shell UK, Dana Petroleum and CNOOC International's UK business. Wood added that it would, through the extensions, continue to 'support operations for an extensive offshore portfolio'. This includes Shell UK's Shearwater, Gannet, Nelson and Penguins assets; CNOOC's Golden Eagle, Buzzard and Scott fields; and the Triton and Western Isles FPSOs (floating production, storage and offloading vessels) for Dana Petroleum. Read more Under the cost-reimbursable arrangements, Wood recovers costs incurred in executing the contracts from the clients, and earns a profit margin. As it announced its success in extending this North Sea work, Wood highlighted its securing last year of all of its contract renewal and extension options across its UK North Sea portfolio. Wood announced on April 14 that it had received a 'holistic non-binding conditional proposal' from Dubai-based Dar Al-Handasah Consultants Shair and Partners Holdings Ltd (Sidara), including a possible offer of 35 pence in cash per Wood share to acquire the entire issued and to be issued share capital of the company. A 35p a share offer would value Wood at around £240 million. Shares in Wood were last July, before they were hit by a series of negative updates from the company, trading significantly above 200p. On April 17, Wood announced its board had requested, and the Takeover Panel had consented to, an extension to the deadline by which Sidara is required either to announce a firm intention to make an offer for the Aberdeen company or to announce that it does not intend to make an offer to 5pm on May 15. This deadline can be further extended with the agreement of the board of Wood and the consent of the Takeover Panel. Steve Nicol, Wood's president of operations, said today: 'We have an unmatched legacy in operating and maintaining North Sea energy infrastructure. Our longstanding clients continue to partner with us to enhance operations and improve production efficiency to ensure a reliable, safe and sustainable energy supply. 'In 2024, we secured 100% of our contract renewal and extension options across our UK North Sea portfolio and continuing this success in 2025 reinforces our position as a trusted long-term partner for operations solutions in the region.'
Trade Arabia
07-05-2025
- Business
- Trade Arabia
Wood boosts North Sea ops with triple extension awards
Wood, a global leader in consulting and engineering, has secured a trio of reimbursable contract extensions worth $118 million to continue to deliver operations and maintenance solutions for Shell UK, Dana Petroleum and CNOOC International's UK business. These extensions will see Wood continue to support operations for an extensive offshore portfolio, including Shell UK's Shearwater, Gannet, Nelson and Penguins assets; Golden Eagle, Buzzard and Scott for CNOOC and the Triton and Western Isles FPSOs for Dana Petroleum, the company said. Steve Nicol, Wood's President of Operations, said: 'We have an unmatched legacy in operating and maintaining North Sea energy infrastructure. Our long-standing clients continue to partner with us to enhance operations and improve production efficiency to ensure a reliable, safe and sustainable energy supply. 'In 2024 we secured 100% of our contract renewal and extension options across our UK North Sea portfolio and continuing this success in 2025 reinforces our position as a trusted long-term partner for operations solutions in the region.'
Press and Journal
07-05-2025
- Business
- Press and Journal
Troubled firm Wood says new North Sea contracts will support 500 Aberdeen jobs
Troubled Aberdeen firm Wood has secured three North Sea contracts worth around £88 million. The engineering group will continue to deliver operations and maintenance solutions for Shell UK, Dana Petroleum and CNOOC International's UK business. Wood shares are currently suspended after the group did not file its accounts for the 2024 financial year in time. It is undergoing an independent review, which has already highlighted 'inappropriate management pressure' as well as issues with project contracts. The contracts will continue to be supported by around 500 employees in the north-east. Aberdeen firm's 'unmatched legacy' Wood president of operations Steve Nicol said the firm has an 'unmatched legacy' in operating and maintaining North Sea energy infrastructure. Its contracts will see it support operations for an 'extensive' offshore portfolio including Shell UK's Shearwater, Nelson and Penguins assets. Mr Nicol said: 'Our long-standing clients continue to partner with us to enhance operations. 'And improve production efficiency to ensure a reliable, safe and sustainable energy supply. Steve Nicol, Wood's president of operations. Image: Wood 'In 2024 we secured 100% of our contract renewal and extension options across our UK North Sea portfolio. 'And continuing this success in 2025 reinforces our position as a trusted long-term partner for operations solutions in the region.' Wood shares suspended as takeover talks continue Last week, Wood issued a statement confirming that its accounts wouldn't be published in time. It said: 'As a result, Wood's shares will be temporarily suspended from listing and from trading on the main market of the London Stock Exchange with effect from 7:30am on May 1 until its FY24 results are published.' Wood said temporary retrospective waivers for its debt facilities have been extended until June 30 2025. Aberdeen-based Wood Group has secured extensions to three North Sea contracts. Image: Kenny Elrick/DC Thomson It is the latest setback for the firm, which is the subject of a fresh takeover bid from Dubai-based group Dar Al-Handasah, known as Sidara, made in February. The deal would be worth 35p per share – around £242m in total. It would also see a further £340m injected into Wood after Sidara confirmed it made 'significant progress' with due diligence. Wood's share price is suspended at 18.2p.
Yahoo
06-02-2025
- Business
- Yahoo
Shell resumes production at Penguins field in UK North Sea with new FPSO
Shell has resumed production at the Penguins field in the UK North Sea using a state-of-the-art floating production, storage and offloading (FPSO) facility. The project is a 50:50 joint venture (JV) between Shell and NEO Energy, with the former being the operator. The previous export route for this field was via the Brent Charlie platform that ceased in 2021 and is now being decommissioned. The new FPSO is expected to achieve peak production of approximately 45,000 barrels of oil equivalent per day (boe/d) and has an estimated recoverable resource volume of around 100 million barrels of oil equivalent. While primarily focused on oil production, the facility will also produce enough gas to heat around 700,000 UK homes annually. Compared with the Brent Charlie platform, the new FPSO is designed to have around 30% lower operational emissions, and will potentially extend the field's life by up to 20 years. The Penguins FPSO, operated by Shell UK, a subsidiary of Shell, was constructed by Sevan, a Norwegian technology, design and engineering company. This marks the first new Shell-operated facility in the UK North Sea in more than 20 years. Its compact design with a cylindrical hull is claimed to offer increased efficiency and flexibility, and features a flareless system that recycles vapour to reduce emissions. Due to the UK's limited refining capacity, oil will be transported by tanker to refineries outside of the country. Some of these refineries supply refined products such as petrol and diesel back to the UK. Natural gas will be transported to the St Fergus gas terminal in Scotland via an existing pipeline, which supplies the UK's national gas network. Shell Integrated Gas and Upstream director Zoë Yujnovich said: 'Today, the UK relies on imports to meet much of its demand for oil and gas. 'The Penguins field is a source of the secure domestic energy production people need today, and the FPSO is a demonstration of our investment in competitive projects that create more value with less emissions.' Additional wells were drilled for the redevelopment of the Penguins field, which are connected to the new FPSO. Located in 165m (541ft) of water, the field is around 150 miles (241.4km) north-east of the Shetland Islands. Discovered in 1974, it previously produced oil and gas between 2003 and 2021. "Shell resumes production at Penguins field in UK North Sea with new FPSO" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
