Wood Group wins pair of Iraq contracts worth $140m

Oil and gas contractor Wood Group has secured two new contracts, worth more than $140 million (£97m), in Iraq.

Wood Group has landed two new contracts in Iraq. Picture: Contributed

The Aberdeen-based firm, which last week announced plans to axe about 300 onshore roles in the UK, said the three-year deals with “one of the world’s leading international oil companies” will see its PSN division provide engineering, project management, procurement and commissioning support for a “significant” onshore asset in the south of the country.

The contracts, which will create more than 100 jobs, will be delivered from southern Iraq and Dubai, where Wood Group PSN last year set up an office.

David Buchan, the division’s eastern region managing director, said: “These two significant contract wins demonstrate Wood Group’s commitment to working closely with key clients to extend our operations in Iraq, where we see a growth market that complements our broad service capabilities, international knowledge and strong expertise.

“Establishing an office in Dubai and a base in Iraq reflects our intention to build lasting customer relationships and focus on the development of our Iraqi workforce and supply chain partnerships.”

Wood Group is planning to cut about 300 onshore roles in the UK amid “continuing cost and efficiency challenges affecting the oil and gas sector”.

It has started consulting with about 1,000 UK onshore staff as it seeks to “strategically position the company to remain competitive both now and in the future”.

The group employs about 6,200 people onshore in the UK. In February, the company revealed it had cut 8,000 jobs last year as it battled to slash costs amid the global slump in commodity prices.