Mustang Enginnering Wins Major Contract from Cairn Energy

Mustang Engineering, a subsidiary of international energy services company John Wood Group, has been awarded a multi-million dollar contract by a subsidiary of UK-based Cairn Energy PLC, to provide front-end engineering design verification, detail engineering, procurement and construction management services for the new Mangala production facility to be located in the Rajasthan Desert in Western India. The facility, expected to deliver 150,000+ barrels of oil per day, will include water treatment and injection, gas production, power generation, fluid gathering and treatment, and crude oil export. Multiphase Solutions, Inc. ('MSi'), another Wood Group company, will provide flow assurance expertise to the project.

The Mangala field development represents one of Cairn's major current projects worldwide and will materially increase India's internal oil producing capacity. Cairn hold a 70% interest in the project, with Oil and Natural Gas Corporation Limited ('ONGC') holding a 30% interest. Mustang is entering into an agreement with L&T Valdel in Bangalore, India to provide some detailed engineering support to the project.

Steve Knowles, Mustang operations manager, said, 'We are looking forward to working with Cairn in delivering this important project in India. We appreciate Cairn's confidence in the breadth of services that Mustang and Wood Group bring to Cairn to perform the work.'

Phil Tracy, Engineering and Operations Director for Cairn said, 'We are pleased to have awarded this significant contract to Wood Group and Mustang who will be valuable members of the team developing Mangala. Mustang & MSi have a long history of delivering complex projects in remote locations around the world, and we are looking forward to working with them to deliver a successful project in Rajasthan.'