Wood Group Signs Production Buoy Agreement

Oilfield services firm Wood Group PSN is set to play a greater role in developing an unmanned production buoy concept aimed at making marginal fields economic after entering into an exclusive option agreement with ABT Oil & Gas.

Enegi Oil, one of ABT's owners, reported Monday that the option provides Wood Group with an exclusive right for a period of 90 days to conclude an agreement to expand its participation in Enegi's and ABT's marginal field initiative. Enegi said the recent acceleration in the development of the marginal field initiative has encouraged the parties to reassess the relationship with a view to Wood Group participating more widely in the development of the business.

In mid-November, ABT farmed into two dormant oilfields offshore Ireland where it plans to use its production buoy concept to make the fields economic. This deal followed a similar deal in July, in which ABT farmed into Antrim Energy's UK central North Sea license P077 – which contains the Fyne field.

Commenting on the deal Monday, Enegi CEO Alan Minty said:

"The execution of the option with Wood Group PSN is further evidence of the attractiveness of the marginal field business model and reflects the progress that has been made in developing the business. The option represents the first step in securing independent investment into this initiative.

"Successful conclusion of negotiations would see stronger links with a leading, global engineering services company providing access to the engineering manpower and expertise that will be needed to deliver on the many projects that it expects to secure and fulfil the potential of the marginal field initiative."

Analysts at UK investment bank Shore Capital added: 

"Wood Group PSN is already a technical partner of ABT Oil & Gas. We therefore consider a greater level of involvement as a natural progression from the current position and, with the possibility of direct investment or participation by a major oil services company, this is highly encouraging news."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Jon Mainwaring
Senior Editor, EMEA | Rigzone
 -  Total CEO: Oil, Gas Industry Must Enga... (Feb 11)
 -  Faroe to Drill 3 Exploration Wells in ... (Feb 5)
 -  Ombrina Mare Project Development Stymi... (Feb 3)
 -  BP to Cut 7,000 Jobs in 2016/2017 afte... (Feb 2)
 -  Mainland Europe Shale Gas: What Now? (Feb 2)

Most Popular Articles

From the Career Center
Jobs that may interest you
Regional Manager - West Texas
Expertise: Civil Engineering|Environmental Engineer|Mechanic|Petroleum Engineering
Location: Sterling City, TX
I & C Reliability Engineer
Expertise: Electrical Engineering|Instrument & Controls Engineer|Reliability Engineer
Location: Louisiana, United States, LA
Senior Engineer
Expertise: Civil Construction|Civil Engineering|Project Management
Location: Houston, TX
search for more jobs

Brent Crude Oil : $30.06/BBL 2.52%
Light Crude Oil : $26.21/BBL 4.51%
Natural Gas : $1.99/MMBtu 2.92%
Updated in last 24 hours