9th May 2016 08:50
LONDON (Alliance News) - John Wood Group PLC on Monday said it has won two new contracts worth a combined USD140.0 million to deliver technical services to a leading oil company in Iraq in the latest deal to be secured since the start of the year.
The company's subsidiary, Wood Group PSN, will provide front-end engineering design, detailed engineering, project management, procurement services, system completion and commissioning support for operations and start-up on a significant onshore asset in southern Iraq.
PSN is the company's subsidiary focused on delivering services to existing energy projects in over 40 countries around the world that helps to optimise performance, maintain production, reduce
operating costs and provide integrity assurance to its customers.
John Wood did not reveal the identity of the field or customer, stating it has been signed with "one of the world's leading international oil companies in Iraq", but said the contracts will create around 100 new jobs and be delivered out of its existing office in southern Iraq and PSN's office in Dubai, which was set up in 2015.
"These two significant contract wins demonstrate Wood Group's commitment to working closely with key clients to extend our operations in Iraq, where we see a growth market that complements our broad service capabilities, international knowledge and strong expertise," said David Buchanan, eastern region managing director of PSN.
"Establishing an office in Dubai and a base in Iraq reflects our intention to build lasting customer relationships and focus on the development of our Iraqi workforce and supply chain partnerships," he added.
John Wood has won a string of contracts since the start of the year involving projects in Brazil, Australia, Azerbaijan, Norway, the US and across the UK.
The oilfield services company kick-started 2016 by securing a two-year contract in early January to provide services to the Polvo A platform offshore Brazil after forming a new partnership with PetroRio, which was quickly followed by a separate engineering contract with D?Arcinoff Group in the US.
Before the end of that month, John Wood managed to secure a new three-year contract from Royal Dutch Shell PLC to provide services to the Prelude floating liquefied natural gas project in Western Australia.
In February, John Wood extended a deal with Chevron under which the oilfield services company serves four of the company's offshore assets in the UK and won a contract with Woodside to design the Greater Western Flank Phase 2 offshore Australia.
John Wood also expanded into the UK petrochemical sector in February after signing a five-year framework agreement to provide services to the onshore Pembroke refinery in south-west Wales, which is owned by the international manufacturer of fuels, petrochemicals and power, Valero Energy.
In March, the company signed a USD120.0 million contract to supply industrial services to defence support services firm Babcock International Group PLC and was awarded a contract to provide services to Shell's St Fergus gas processing plant in Aberdeenshire, alongside the Mossmorran gas processing plant and the Braefoot Bay marine terminal in Fife.
John Wood then extended its existing contract with Abu-Dhabi state-owned firm TAQA covering five assets in the UK North Sea during early April, which was followed by a five-year contract worth USD150.0 million from a subsidiary of Chinese-giant CNOOC Ltd, covering the Buzzard, Scott and Golden Eagle platforms offshore the UK.
The company also signed contracts with giant Statoil covering the subsea field concept engineering for the Snorre expansion project offshore Norway and a five-year contract worth USD500.0 million to provide services to eight facilities that are part of projects operated by oil major BP PLC offshore Azerbaijan during April.
The last contract to be secured prior to the one awarded Monday was signed last week with Shell, covering eight of the oil giant's assets lying offshore the UK.
John Wood shares were trading up 0.4% to 619.50 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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