ConocoPhillips And Wood Group Sign Contract in Australia

ConocoPhillips signs an agreement with Wood Group in Australia for field services; ConocoPhillips and BP also signed a contract with Governor Walker for getting 25% share.

The oil exploration and production company, ConocoPhillips, signs a multiyear contract with John Wood Group Plc., an energy services business, on Tuesday in Australia. The contract is already effective, and the Scottish engineering firm will be offering engineering services to Darwin and Timor-Leste situated in Australia. The oil and gas giant also signed an agreement contract on Friday with the state and another organization in the business, BP Plc., according to the Governor Bill Walker, on Tuesday.

ConocoPhillips contract with Wood Group will help in the development of Darwin liquefied natural gas, LNG plant and the Bayu-Undan field in Timor-Leste. The managing director of the Scottish engineering organization, Andrew Stewart, said, “To deliver this contract, we are delighted to be able to harness the collaborative expertise of our business in brownfield services and Wood Group Kenny in subsea engineering. This win is privileged addition to our existing brownfield modifications capabilities, particularly across our growing LNG activities in Australia and Asia Pacific.” The engineering service is also going to be providing advisory service on the creation of storage and offloading services and subsea pipelines.

The Oil Company operates the Bayu-Undan field, while other partners of the field, such as Tokyo Electric and Gas, Santos and many others, do not participate in the operations. The Darwin plant is used for refining the gas found in the Bayu-Undan field and the organization takes the processed production through two trains in one design facility, which provides it with more flexibility and efficiency. Financial term and conditions included in the contract have not yet been made public.

The Oil and Gas Company collaborated with BP Plc., and signed a gas availability agreement with the state governor, Bill Walker. A bill came into being after a session of state legislature from October 24 to November 5, which would allow the state to purchase 25% stake of LNG pipeline project by TransCanada and be partner with the two oil companies and another, ExxonMobil.

The Department of Natural Resources also signed the agreement, where both the giant oil companies assured that they would provide gas through the pipeline even if one partners leaves the project. Written commitments were provided by the two businesses through letters given to the legislation.

Bill Walker’s Office made a press release that said, “The gas availability agreement is the result of months of negotiations between the state and its partners, and brings the state closer to delivering North Slope gas to the world market and lowering energy costs for Alaskans.”

COP stock closed at $48.46, going green by 0.33% on December 9.