Jacobs Engineering Group Inc announced that it will provide engineering services within a consortium that received an umbrella contract from Nederlandse Aardolie Maatschappij B.V. (NAM), a 50/50 joint venture between Shell and ExxonMobil. The services provided, as dictated by the contract, include maintenance and project work on installations of the Groningen gas transmission system. This system is located in the Groningen area of The Netherlands.
Officials did not disclose the contract value or the total investment cost.
Jacobs is a member of the "Groningen Long Term (GLT) plus" consortium that includes Siemens Nederland NV, Siemens Industrial Turbomachinery BV, Stork Industry Services B.V. and Yokogawa Europe Solutions B.V.
Under the umbrella contract, GLT will serve the gas extraction and treatment installations; underground gas storage locations in Norg and Grijpskerk; and NAM's installations in Delfzijl. The 15-year contract, which began on Jan. 1, 2010, is expected to provide over 10,000 man-years of employment in the northern part of The Netherlands.
NAM and the above listed consortium partners previously worked together between 1997 and 2009 to deliver the "Groningen Long Term (GLT)" project. The project was completed on time and within budget. The 12-year project involved renovation of all gas production locations in the Groningen gas field. This renovation ensured the production of many decades of natural gas.
Commenting on behalf of NAM, Johan de Haan, Groningen Asset Manager, said, "I look forward to continuing a successful and efficient partnership with the consortium. If we succeed in implementing the positive experience of the GLT project for these maintenance activities, I am convinced that we are well prepared for the future."
The Groningen system is crucial for NAM and for The Netherlands, as it is responsible for approximately 50 percent of the country's natural gas production. "The Groningen system has to maintain its current capacity in the coming decades to be able to absorb the fluctuations in demand for natural gas. That is why our installations have to be well maintained and modified/extended. Investments are therefore crucial; this new service contract will form an effective basis," said De Haan.
In making the announcement, Jacobs President and Chief Executive Office Craig Martin stated, "Jacobs is extremely proud to continue the legacy of excellent performance that we began in partnership with consortium members 12 years ago. We are a committed member of the GLT plus consortium, and expect to do our utmost to ensure safe, high-calibre engineering services to support NAM's extensive maintenance and project investment in the Groningen gas field."