Static compensation devices are being increasingly applied in power systems to improve power system stability with steady state and dynamic control under different network conditions. This thesis discusses the dynamic performance and voltage control capability of SVC and STATCOM compensation devices applied to hypothetical power supply network of oil platform. SVC and STATCOM modeling with standard recommended CIGRE models will be discussed. STATCOM has been found to be more effective than SVC to ensure voltage stability, because of the ability to provide more reactive power under distorted main voltage conditions. However, both devices provide system improvements and benefits.