Wood Group secures $60m North Sea contract extension

ENERGY services firm Wood Group has extended its long-running relationship with oil giant ConocoPhillips in a deal worth $60 million (£38.8m).

The Aberdeen-based group said the one-year addition to its contract will support 150 onshore and 280 offshore jobs at its PSN subsidiary.

As well as providing maintenance services across 50 of the oil giant’s North Sea assets, PSN will support the ConocoPhillips onshore Theddlethorpe gas terminal in Lincolnshire.

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The deal is the latest in a string of North Sea contract extensions for Wood Group PSN, which employs more 28,000 people across 35 countries.

Earlier this month, the group secured a £140m deal from fellow Aberdeen company Ithaca to operate the Beatrice offshore platforms and Nigg onshore terminal until the end of their operating life. That came weeks after it landed a deal, worth up to £56m, to operate Teekay’s Hummingbird Spirit production, storage and offloading vessel in the Chestnut field, 125 miles north-east of Aberdeen.

Wood Group PSN won its first contract with the UK arm of Houston-based ConocoPhillips in 1992 and managing director Dave Stewart said the scale of its operations made it one of the firm’s most complex projects.

He added: “We are proud to have worked with ConocoPhillips for more than 20 years and continue this long-term relationship.

“The project is a key contract in our UK portfolio and we are pleased to receive this extension and further enhance our reputation with a major international company.”