Engineering giant Wood is set to provide support for Shell’s operations around the world for another three years after winning a notable vote of confidence from the oil major.
Aberdeen-based Wood said it has entered a framework agreement with Shell covering consulting and engineering work in Europe, North America, Latin America, South-East Asia, Australia and the Middle East.
The company did not disclose the value of the agreement but it is understood to be material to the company.
Work under the agreement covers support for Shell’s oil and gas assets in the North Sea such as the Shearwater production east of Aberdeen.
It supports more than 500 jobs in the UK.
Wood said the agreement will also see it continue to help enable energy transition projects focused on carbon capture, low-carbon fuels and hydrogen.
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Chief executive Ken Gilmartin said: “This award continues a 70-year relationship between Shell and Wood, spanning more than 20 countries and numerous major projects.”
He added: “We look forward to continuing to partner with Shell as we work to design a better energy future together.”
Last month Wood said it had increased first half revenues by around 15 per cent helped by good growth in all business units. The company is active in a range of engineering markets around the world.
First half successes included a life sciences contract win in the USA.
In February Wood said it had rejected unsolicited takeover approaches from US investment giant Apollo. In May Apollo announced that it did not intend to make an offer for Wood.
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After posting $5 billion (£4bn) second quarter profit last week, Shell said it was making good progress in the North Sea. The company started production from the revamped Pierce field recently. It expects to bring the Penguins field onstream next year. Shell is a partner in the Acorn carbon capture and storage project in Scotland.
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