Wood Group Wins Downhole Contract from Anadarko

Wood Group Production Technology has been awarded a contract from Anadarko Petroleum to provide downhole permanent monitoring and chemical injection systems for 12 subsea wells to be connected to the Eastern Gulf of Mexico Independence Hub. The contract, valued at approximately $4.5 million, will extend through 2006.

Independence Hub, LLC, an affiliate of Enterprise Products Partners and Cal Dive International, will process production from the discoveries of the Atwater Valley Producers Group, which includes Anadarko Petroleum; Dominion Exploration & Production, Inc.; Kerr-McGee; Spinnaker Exploration and Devon Energy.

Independence Hub will be a deep-draft, semi-submersible platform that will be connected initially to nine natural gas fields. Anadarko is the operator of seven of the nine fields and will be the operator of the Independence Hub facility. These fields are located in the Atwater Valley, DeSoto Canyon and Lloyd Ridge areas of the deepwater Gulf of Mexico, where water depths range from 7,800 to 9,000 feet. First production is expected in 2007.

"This contract marks Anadarko's first offshore use of our highly reliable ROCâ„¢ downhole sensors," stated David Blacklaw, general manager of Wood Group Production Technology. "Reliability of downhole systems is critical for efficient, and profitable, field operations, particularly in deep water, and our sensors will enable Anadarko to accumulate data vital for reservoir analysis and production optimization. Downhole monitoring and chemical injection systems also increase operational efficiencies and accelerate coordination of these simultaneous operations."