Aberdeen-headquartered energy services giant Wood (LON: WG) has landed a design deal on the 100 million-barrel Halten East development.
The project was approved by operator Equinor, alongside partners Var Energi, Spirit Energy and Petoro, earlier this year for a NOK 9 billion price tag (£788.5m).
London-listed Wood will deliver detailed design of the subsea pipelines for the multi-field development off Norway.
Halten East is estimated to hold 100 million barrels of oil equivalent, around 60% of which is gas.
The project will use existing infrastructure and facilities, alongside a new pipeline system to tie-back to the Asgard B platform.
Wood will carry out the work using dedicated subsea and pipeline specialists in Norway, following delivery of the concept design and front-end engineering.
The work has been awarded under an evergreen master services agreement with Equinor.
Matt Kirk, president of specialist engineering and consulting at Wood, said: “Wood has been delivering subsea engineering and technology solutions to Equinor for more than 30 years. We are delighted to support the development of the Halten East project and the role it will play in supplying secure energy across Europe.
“We have developed a strong relationship with Equinor, one that is built on trust and confidence in our delivery, and we look forward to continuing our global track record in supporting Equinor to realise the full potential of their assets and portfolios.”
Halten East is the collective name for several small discoveries and projects in the region.
Gas from the project will be piped to Europe via the Karsto gas plant north of Stavanger.
The project is to be executed in two phases with up to 10 wells, starting with a six-well development to be drilled in 2024-25, followed by another phase in 2029.
More than 90% of investment in Halten East are going to suppliers in Norway.
The partners are Equinor Energy AS (57.70% – operator), Petoro AS (5.90%), Vår Energi AS (24.60%) and Spirit Energy AS (11,80 %).
Shares in Wood are trading at £1.27.
Recommended for you
