Oil and gas services company Wood Group has won a contract worth more than NOK500 million ($61 million) to expand and upgrade a gas processing plant in Norway, BBC reported.

The Kollsnes processing plant, located west of Bergen, processes natural gas from the Troll, Kvitebjorn and Visund fields in the North Sea. It currently provides almost 40 percent of Norwegian gas deliveries.

Statoil, on behalf of the operator of the Kollsnes plant, Gassco, has awarded Wood Group a contract that includes front-end engineering design, procurement and management assistance to expand the capacity of the plant so that it can accommodate increased production from the Kvitebjorn platform in the North Sea. The company will also provide engineering, procurement and management assistance to update the electrical, instrumentation and control systems.

Wood Group Mustang Norway has already started work on the project, which will continue through December 2017.

When the modifications are complete the Kollsnes facility will be one of the largest gas processing plants in the world, with capacity to process 144.5 million cubic meters per day of gas.

"The project is important to ensure the robustness of the Kollsnes processing plant in a long-term perspective," commented Svein Birger Thaule, executive vice president for asset management at Gassco.

"Wood Group Mustang's onshore engineering expertise combined with our knowledge and experience with Statoil is enabling us to provide a competitive technical solution for the Kollsnes plant," added Otto S¯berg, president of Wood Group Mustang Norway.