Wood Group lands Shell contract as job cuts loom

The deal covers Shell's Brent Alpha platform. Picture: Hemedia
The deal covers Shell's Brent Alpha platform. Picture: Hemedia
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Energy services giant Wood Group, which yesterday said it plans to axe about 300 onshore roles in the UK, has landed a North Sea contract with oil giant Shell that will secure more than 500 jobs.

The Aberdeen-based firm said the three-year contract, which has the potential to be extended by up to two years, will see its PSN division continue to deliver maintenance and construction services to Shell’s Brent Alpha, Brent Bravo, Brent Charlie, Brent Delta, Curlew, Gannet, Nelson and Shearwater installations.

James Crawford, Wood Group PSN’s managing director for the UK and Africa said: “This contract safeguards long-term employment opportunities for our employees on these assets, and builds on Wood Group’s 40-year history working in partnership with Shell in the North Sea.

“Extending our long-term service provision across this broad portfolio of UK continental shelf offshore assets reflects Shell’s assurance in our continued high standard of delivery and commitment to working collaboratively.”

READ MORE: Wood Group extends deal with Shell’s Scots gas sites

The deal comes the day after Wood Group Oil unveiled plans to axe about 300 onshore roles in the UK amid “continuing cost and efficiency challenges affecting the oil and gas sector”.

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

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

• More than 170 jobs are set to be lost in Aberdeen and London after the collapse of oil and gas shipping company Harkand Group.

Administrators at Deloitte said 98 of the 171 posts are at Harkand’s base in Aberdeen, where the company provides inspection repair and maintenance services for offshore operations worldwide.

Deloitte said Harkand had been hit by the prolonged fall in global oil prices.