Wood Group scoops £450m deal in Papua New Guinea

ENERGY services firm Wood Group has won a contract worth up to £450 million from Exxon-Mobil, the world’s biggest oil company, to work on its sites in Papua New Guinea.
Matt Gavin of Wood Group. Picture: ContributedMatt Gavin of Wood Group. Picture: Contributed
Matt Gavin of Wood Group. Picture: Contributed

Under the deal, the Aberdeen-based firm will provide construction, engineering and maintenance services for Esso Highlands’ liquefied natural gas (LNG) operations.

The initial five-year contract is understood to be worth between £300m and £450m, with the possibility of the deal being extended for two further two-year terms.

Hide Ad
Hide Ad

About 500 jobs are expected to be created as a result of the contract, including some 300 construction roles in Papua New Guinea and 150 engineering posts in Melbourne, Australia.

Although the jobs will be based “down under”, Wood Group aims to fill the majority of the posts using its own staff, which could mean opportunities for employees in Scotland and may lead to jobs being created in the UK if existing workers move overseas.

Matt Gavin, managing director of Wood Group’s Production Services Network (WGPSN) division in Asia Pacific and Australia, pictured right, said: “We are thrilled with the award of this contract, which enables us to cement our position in the Asia Pacific LNG market. WGPSN has a long history with Exxon-Mobil globally, providing operations and technical support in Australia and Asia Pacific, the United States, and Africa.”

The LNG project in Papua New Guinea includes natural gas production and processing sites, onshore and offshore pipelines and liquefaction facilities.

Esso Highlands is operating the project on behalf of its partners, which consist of Oil Search, National Petroleum Company, Santos, JX Nippon Oil & Gas, Mineral Resources Development and Petromin.

The Papua New Guinea contract is the latest in a string of deals for Wood Group, which last month won a £140m contract extension with Ithaca Energy to serve the Beatrice platforms in the North Sea and the Nigg terminal in Easter Ross through until the end of their operating lives.

WGPSN also won a one-year, £40m contract extension from ConocoPhillips to work on 50 manned and unmanned sites in the southern and central North Sea and at the Theddlethrope gas terminal in Lincolnshire.

The contract is one of the FTSE 100 company’s longest-running projects, having been awarded in 1992.

Hide Ad
Hide Ad

WGPSN accounts for about 30,000 of Wood Group’s 43,000 global employees, who operate in 50 countries.

Earlier this month Wood Group – which is led by chief executive Bob Keiller – bought Pyeroy, a Gateshead-based firm involved in the painting of the Forth Bridge.

Pyeroy and its 1,800 employees in eight locations across the UK and Ireland will be rolled into the WGPSN business.

Related topics: