The Wood Group announced today it is to provide main automation contractor (MAC) services to Tengizchevroil (TCO) at the giant Tengiz oil field, in Kazakhstan.
The contract, which involves the Future Growth Project – Wellhead Pressure Management Projects, was valued at approximately US$700 million (£542.67 million).
“The automation scope of the Future Growth Project-Wellhead Pressure Management Project is one of the world’s largest industrial automation projects and we are pleased to be providing the solution that will help TCO meet its vision of a “flawless startup”, Wood Group Chief Executive Robin Watson, said.
Wood Group Gets Service Deal in Giant Kazakhstan Field
The service will be provided by Wood Group’s vendor-independent Automation and Control business under a multi-year contract.
Wood Group has been supporting this project since 2013, the company informed in a statement.
“We are combining the global expertise and capabilities of our Automation & Controls personnel in the UK, US, Argentina and Kazakhstan to deliver the complex systems needed for this world-class field and expansion project,” Watson added.
Wood Group CEO Robin Watson
The Tengiz field is located on the 1,600 square mile project licence area, which includes the giant Tengiz field and a smaller Korolev field.
Tengiz is also one of the world’s deepest developed giant oil fields, with the top of the reservoir at about 13,000 feet.
According to information on Tengizchevroil’s website, “the reservoir area is so large that one would have to run nearly two marathons to cover the entire distance around it”.
Wood Group Reports Falling Revenue in H1-2016
Also today, the company disclosed its financial results for the first half of the year, reporting a 17% decrease in total revenue and expectations that this will continue throughout the year.
“Performance in the first half of 2016 reflects the balance of a challenging oil and gas market, our continued focus on utilisation and cost management and the benefits of our flexible, asset light model,” the CEO explained.
“Looking further ahead, we see early indications of modest recovery in some areas and believe our customer relationships, geographic footprint, strong financial footing and relentless focus on delivering value through our asset life cycle services and specialist technical solutions, position us well,” Watson stated further.