Aberdeen's Wood strengthens decades-long relationship with Shell

Wood, the Aberdeen-headquartered energy and engineering services heavyweight, has built on its decades-long relationship with oil giant Shell after signing a new global framework agreement.

Craig Shanaghey, executive president of operations at Wood, with Alistair Hope, senior vice president of conventional oil and gas and offshore wind projects at Shell.

The deal will see Wood continue to support projects that help boost energy security and others that are focused on carbon capture, low-carbon fuels and hydrogen. Wood said it would be deploying its expertise in decarbonisation, digitalisation and asset life extension to enhance Shell assets worldwide.

Under the three-year framework, with options for two one-year extensions, services will be provided by the group’s consulting and engineering teams in Europe, North America, Latin America, south-east Asia, Australia and the Middle East. It will bring specialist consulting, engineering, procurement and project management expertise to various greenfield and brownfield projects.

Wood’s 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. Complex project excellence is where we excel and we are aligned with Shell in our strategic ambitions to deliver the energy the world needs today while simultaneously delivering the energy transition at pace. We look forward to continuing to partner with Shell as we work to design a better energy future together.”

News of the major deal comes after the group said last month that it was in an “exciting position” as it targets key growth markets in the wake of this spring’s aborted takeover approach. Updating investors on recent trading, Gilmartin said the group had won a number of “significant” contracts in energy, minerals and life sciences during the first half. Revenues during the period totalled around $2.9 billion (£2.2bn), up by some 15 per cent compared to a year earlier, with good growth in all business units.

The update came after US private equity suitor Apollo Management dropped its £1.7bn proposed takeover of FTSE-250 Wood in May. Apollo had put forward a series of bid proposals, with the last one for 240p a share in cash, valuing the Scots group at some £1.66bn. Its latest update revealed that the global headcount had risen by 5 per cent during the first half to around 35,600 people.

Aberdeen's Wood in 'exciting position' as order book and headcount rise