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Woods Group and Antin IP sign CATS contract

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Hydrocarbon Engineering,

A US$250 million contract has been entered into by Wood Group and Antin Infrastructure Partners (Antin IP). Subject to particular regulations and agreements, Woods Group will provide operating services for the Central Area Transmission System (CATS) in the North Sea for up to 10 years.

Wood Group PSN (WGPSN) will act as the duty holder of the CATS terminal and pipeline, taking day-to-day responsibility for operations. A dedicated Wood Group Kenny (WGK) team, based in Glasgow, will be integrated into the operating services team to provide pipeline management expertise.

Serving 34 producing fields

CATS transports gas through 404 km of pipeline from the Central North Sea to its terminal in Teesside, UK, where it is then processed on behalf of major North Sea gas producers. The system currently serves 34 producing fields with a high portion of contracted revenues. In 2013, CATS alone accounted for the transportation of 13% of UK domestic gas production.

This news has followed the announcement that Antin has agreed to acquire BP's share of CATS taking its interest to 99%. WGPSN will work closely with Antin IP and BP to ensure a safe and smooth transition. It is anticipated that WGPSN will take responsibility for operating CATS by the end of 2015, once the deal between BP and Antin IP has concluded.

Comment from Wood Group PSN

James Crawford, WGPSN's UK and Africa Managing Director, said: "This partnership enables us to extend our existing duty holder capabilities and expertise into new markets. By leveraging the expertise of WGPSN and WGK, we will draw on the strength of Wood Group for our new client and our priority is to ensure a safe and smooth transition of operatorship with particular focus on retaining and developing the existing CATS workforce.”

Edited from source by Elizabeth Corner

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