Shell prolongs Wood’s assignment on 20 offshore installations in Brunei

UK-headquartered John Wood Group PLC (Wood) has secured a long-term contract extension for the work on 20 installations off Brunei with Brunei Shell Petroleum (BSP), a subsidiary of the oil major Shell.

Wood disclosed a two-year contract extension worth approximately $250 million with Brunei Shell Petroleum on Monday, 3 July 2023. This extension, which will run to February 2026, means the firm will deliver a range of services to Shell’s top 20 offshore installations in Brunei, focusing on the continued rejuvenation of this offshore energy asset portfolio to maximise production capacity and efficiency.

These 20 installations account for around 80 per cent of Brunei Shell Petroleum’s total oil and gas production and the contract extension is expected to be delivered by Wood’s teams in Brunei from the company’s main location in Kuala Belait and offshore, supported by the Manila, Philippines office. The government of Brunei Darussalam and Shell group each own a 50 per cent stake in Brunei Shell Petroleum.

According to Wood, the scope of the work covered by the extension includes brownfield engineering, procurement, construction, and commissioning services as well as the management of the offshore marine fleet. The company underscores that the work it is undertaking will maximise the production capacity of the assets whilst minimising related emissions.

Ken Gilmartin, CEO at Wood, commented: “Wood is pleased to continue supporting BSP’s offshore assets in the next phase of its rejuvenation project to upgrade core assets, which account for around 80 per cent of BSP’s production, making this work critically important to the company. This extension shows progress on our strategy; which focuses on reimbursable projects and complex work in critical industries; that we laid out last year and demonstrates the strength of our relationship with an important client in a key region.

“It is also a testament to our track record of performance excellence, safe operations, and innovative technical expertise. The award also highlights our continued focus on ensuring energy security across the region whilst minimising the environmental impact of doing so.”

Wood claims that it is committed to investing in local people and capabilities through the Wawasan Brunei 2035 programme to advance employment and skills of the country’s national workforce, as demonstrated by employing around 1,500 skilled employees under the contract with Shell, 65 per cent of which are local to Brunei.

Wood, which is also working for BP and Centrica, recently joined forces with Transitus Energy to explore opportunities for onshore and offshore decarbonisation projects across the United Kingdom energy industry.