Wood Group wins BP contract extension

Published on Thursday 18 March 2010 20:16

WOOD Group said yesterday it had been granted a contract extension by BP for an oil and gas processing terminal, which will preserve 100 jobs in Scotland.

The contract means the FTSE 250 oil services group will continue to provide engineering and maintenance to BP's Sullom Voe Terminal in the Shetland Islands.

One of the largest oil and liquefied gas terminals in Europe, Sullom Voe was built in the 1970s to act as a buffer between the producing fields offshore and tankers waiting to ship oil to refineries around the world.

Aberdeen-based Wood said the three-year contract, which has two one-year extension options, is worth about 25 million. It will secure about 100 jobs in Shetland, Glasgow and Aberdeen.

Les Thomas, the director of Wood's production facilities business, said the group looked forward "to maintaining and strengthening our alignment with BP's drive to improve safety and efficiency".

Wood is currently upgrading the gas processing terminal at Sullom Voe, a project scheduled to be completed later this year.

The multi-million refurbishment will replace the 25-year-old gas processing plant with a more efficient design.

Oil companies, which have previously favoured continuity among service companies, have recently used retendering contracts as a rich source of ways to cut their costs.