Business

Contract wins for Aberdeen engineering giant secure 200 jobs

OIL services heavyweight Wood has won North Sea contracts worth $160 million (£120m) which it said would secure the jobs of around 200 people.

Aberdeen-based Wood said it had clinched a series of contract awards from key clients in the fourth quarter, including Shell UK and Dana Petroleum.

The company will provide engineering, procurement and construction services across Shell’s St Fergus terminal in Aberdeenshire and the Mossmorran plant in Fife, and on the Nelson, Gannet and Shearwater offshore assets.

READ MORE: Shell U-turn on Cambo development won’t help Scotland cut emissions

It has won a three-year contract to deliver operations and maintenance services on the Western Isles and Triton floating production vessels for Korean-owned Dana Petroleum, with options for extension.

The contract awards underline the value of the core oil services business for Wood, although the group has been looking to reduce its reliance on the sector.

Under the leadership of chief executive Robin Watson, Wood has expanded in a range of engineering markets, such as renewable energy and hydrogen.

Mr Watson thinks the firm is well positioned to succeed during the transition to a lower carbon energy system amid the global effort to cut emissions.

READ MORE: Aberdeen-based Wood positioned for growth amid net zero drive

However, in a recent interview with The Herald he said Wood had no plans to quit the North Sea oil services business in which the group made its name. He said Wood expects oil and gas to remain an important part of the energy mix “over the next decade, if not generation”.

Craig Shanaghey, Wood’s President of Operations for Europe, Middle East, and Africa, said: “The energy industry has been significantly challenged throughout the pandemic, putting pressure on asset operators and the supply chain to ensure security of energy supply under extraordinary circumstances.”

He added: “As we collectively, as a society and industry, seek to accelerate the journey towards a net zero future, a huge enabler for our success will be driving down the carbon intensity of the conventional energy production that we still need today.”

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