• Natural Gas News

    Wood Bags Service Deal at UK Morecambe Fields


The UK contractor will work to extend the fields' life, lower costs and reduce late-life carbon intensity under a $130mn five-year deal.

by: Joe Murphy

Posted in:

Complimentary, NGW News Alert, Natural Gas & LNG News, Europe, Corporate, Exploration & Production, Contracts and tenders, News By Country, United Kingdom

Wood Bags Service Deal at UK Morecambe Fields

UK contractor Wood said on January 19 it had entered a deal with Centrica-owned producer Spirit Energy to deliver late life solutions for the Morecambe Bay gas fields.

The five-year services contract is valued at $130mn and will see Wood working to extend field life, lower costs and reduce late-life carbon intensity across the hub's offshore assets in the East Irish Sea and the Barrow onshore gas terminal on the northwest coast of England.

"Our shared ambition is to leverage the greatest value from the Morecambe Hub in its late life phase, by focusing on driving down operational costs and creating opportunities to extend field life," Wood's president for Europe, the Middle East and Africa, Craig Shanaghey, said in a statement.

The Morecambe fields, consisting of North Morecambe, South Morecambe and Rhyl, have been in production since 1985 and at one point covered 20% of the UK's gas needs. Spirit, the fields' 100% operator, began decommissioning some of their platforms in 2018 while refurbishing others, to prolong production life into the 2020s.

"The Morecambe hub has produced gas for the UK for more than 30 years, and remains a key asset in our portfolio as we continue to maximise economic recovery from the area," Spirit Energy's Morecambe hub asset director John Cowie commented. "There is still more we can do to extend Morecambe’s field life while reducing its emissions and contribute to the UK’s Net Zero targets, and we look forward to working with Wood on both of these goals."

Swiss vessel operator Allseas is set to deploy its Pioneering Spirit ship to remove the Morecambe DP3 and DP4 installations, Spirit said earlier this month.