FTSE 100 energy services giant Wood Group has announced that its PSN business (WGPSN) will continue to provide duty holder and asset management services to the Hummingbird Spirit floating storage offloading production (FPSO) vessel, under a new contract extension from Teekay.
Beginning April this year, the contract continues until the end of 2013 and has the option to extend until March 2015. The two-year extension option is valued at $87m (£56m).
WGPSN has provided duty holder and asset management services to the North Sea FPSO - situated in the Chestnut field, central North Sea - since it was commissioned in 2008 and was the company's first duty holder contract.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Dave Stewart, the UK managing director of WGPSN said: "As duty holder, we have complete responsibility for Hummingbird's operations management and are proud of the quality, standard of delivery and excellent safety record we have recorded to date.
"In 2012 we were recognised for our achievements when we won the offshore contractors association (OCA) challenge award in the safety category, for an outstanding shutdown on Hummingbird.
"WGPSN is one of the few service companies in the UK to be contracted to duty holder responsibilities and we're delighted to receive this extension and continue to have the Hummingbird project in our UK portfolio."
The new contract retains almost 100 UK jobs, primarily offshore, and is one of two UK duty holder contracts maintained by WGPSN.
The company also has the duty holder contract for Beatrice offshore platform & Nigg onshore terminal for Ithaca, a contract it has held since 2009.
NR
-
Cash in on the growth prospects of Europe's companiesOpinion Marcel Stötzel, co-portfolio manager of the Fidelity European Trust, selects three stocks
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
