The Harbour Energy PLC (LON: HBR) share price rose 2.17% after announcing a strategic partnership worth $330 million with Wood Plc. The two companies have agreed to a new master services agreement (MSA) and associated contracts valued at around $330 million.
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As the UK’s largest oil and gas producer, Harbour Energy entered into the five-year deal with Wood Plc due to the company’s experience working on North Sea assets and has excelled at designing and managing the complexity of energy infrastructure while seeking to minimise associated emissions.
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Under the new agreement, Wood will provide procurement and construction (EPC), engineering, and operations and maintenance (O&M) services. The deal also includes digital and decarbonisation solutions for several of Harbour’s offshore assets that play a crucial role in the UK’s energy security.
The partnership covers Harbour’s operated assets, including the Greater Britannia Area, J-Area, AELE (Armada, Everest, Lomond and Erskine) and Solan hubs. The deal has an initial five-year term and five one-year extension options.
The partnership is expected to create hundreds of jobs for Wood’s operations teams in Aberdeen and offshore across the two EPC and O&M contracts.
Steve Nicol, Wood’s Executive President of Operations, said: “We are incredibly proud to have been selected and trusted by Harbour Energy to partner with them across their North Sea assets. We share a commitment to ensuring safe, reliable and sustainable energy production and are confident our integrated digital solutions and world-leading engineering, operations and decarbonisation expertise will enable Harbour to maximise their investment and ensure the UK continues to have the energy mix it needs… This new agreement and new contracts are a testament to Wood’s role as a trusted technical partner to the energy companies of the future, where our priority is to help our clients deliver the energy the world needs and be able to transition to a low carbon future.”
Audrey Stewart, Harbour Energy’s Vice President of Supply Chain, said: “Harbour is excited to develop our relationship with Wood, and the signing of this contract is an important step forward in establishing our suite of long-term strategic partnerships across our North Sea assets.”
Harbour Energy (HBR) share price.
The Harbour Energy share price edged 2.17% higher to trade at 258.95p, from Friday’s closing price of 253.45p.
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