WOOD Group has won a multi-million dollar contract to provide subsea engineering services for BP in the North Sea and other areas.
The Aberdeen-based oil services giant will work on BP’s existing subsea facilities off the UK and Norway under the five year contract, which it described as significant.
Wood will also provide support on BP’s subsea assets in the Gulf of Mexico and offshore Azerbaijan.
The company welcomed the award as a vote of confidence in the firm from a key client. It comes as oil services firms grapple with the fall out from the crude price plunge.
This has led oil and gas companies to slash spending on new projects. The services firms that help them develop and run assets are under pressure to help clients cut costs.
Led by chief executive Bob Keiller, Wood Group recorded a near 20 per cent fall in first half revenues which it noted reflected lower activity in areas such as the North Sea and Americas.
Wood Group cut 1,000 jobs in the UK in the first half.
The new contract will be serviced by the Wood Group Kenny division from its bases in Aberdeen and overseas.
Welcoming the contract win, Bob MacDonald, chief executive of Wood Group Kenny, said: “Our key focus will be on effective and efficient delivery in this challenging climate.”
Wood Group noted it has been helping BP to develop new subsea facilities since 2007.
In February a joint venture between Wood Group and the Massy engineering group won a five year contract to support BP’s facilities on and offshore Trinidad & Tobago, worth up to $250m.
Robin Watson, a former head of Wood Group’s PSN maintenance arm, will succeed Mr Keiller as group chief executive after he retires from the firm on 31 December.
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