WOOD has won a multi-million dollar contract to work on a US gas plant which will help reduce its reliance on the challenging North Sea oil services market.
Aberdeen-based Wood will provide civil and mechanical construction services for the Jewell gas plant in Wyoming with the Evolution Midstream business. The plant is the first built in the landlocked state for six years.
The company won the contract after working on the early design phase of the project for Evolution Midstream.
The head of the group’s Asset Solutions Americas business, Andrew Stewart, said Wood gained the US firm’s trust and respect through the strong relationship they developed during that phase.
The win represents the latest success in Wood’s campaign to win more work on onshore facilities such as refineries and processing plants amid tough times in the offshore oil services industry in the North Sea.
Oil and gas firms slashed spending in the area in response to the plunge in the crude price between summer 2014 and early 2016. Work on new facilities and upgrades of existing assets dried up.
Led by chief executive Robin Watson, Wood acquired London-based Amec Foster Wheeler for £2.2 billion last year to gain exposure to a wider range of industries and extend its geographic reach.
The crude price rally since late 2016 has provided some relief. Wood said in June that North Sea activity was showing moderate growth on 2017 from a low base.
Industry body Oil & Gas UK noted recently the North Sea supply chain remained under pressure.
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