Wood Group Secures Key Tullow Oil Contract for Namibia

Woodhill Frontier and J P Kenny, subsidiaries of Wood Group, have been awarded a contract by Energy Africa, a Tullow Oil Group company, for the final concept selection and front-end engineering and design (FEED) for the proposed Kudu gas project off the coast of Namibia. The work will be a joint undertaking of Woodhill Frontier with J P Kenny, and will be carried out in the London office of Woodhill Frontier.

"This represents a significant success for the recently acquired Woodhill Frontier operation in London, especially given this project's high profile in southern Africa," said Bill Hobbs, Managing Director of Woodhill Frontier.

There are two main concepts being considered, direct subsea to beach (S2B) and the use of a floating production facility (FPF) for offshore processing. The FPF option will minimize the facilities and cost of the onshore gas terminal, compared to the subsea option. The subsea option also has significant technical challenges for the 180km distance to shore. The FEED study is expected to last approximately six months.

"This is a significant collaboration between Woodhill Frontier and J P Kenny and demonstrates the natural fit of capabilities between the two Wood Group sister companies" said Dave Baker, Managing Director of J P Kenny Ltd.

Discovered in 1974, Kudu lies in 170 meters of water and is now being considered for development due to improvements in market conditions. Phase One of Kudu is due on stream in 2009 at an initial rate of 130 million standard cubic feet per day, which will supply an 800 megawatt power plant at Oranjemund in Namibia. The NamPower-developed plant will supply both the expanding Namibian and South African markets. NamPower is a national utility company of Namibia, while Energy Africa, the operator of the gas field, is partnered by the National Petroleum Corporation of Namibia (Namcor)