WOOD Group has won a contract to provide engineering services across the North Sea for a Danish energy giant which will provide a boost amid the crude price slump.
The Aberdeen-based oil services giant said it has been appointed to support DONG Energy’s oil and gas assets across the Danish, Norwegian and UK continental shelves.
The value of the four year contract was not disclosed. It looks likely to be worth millions of dollars.
The contract is the first Wood has won from DONG Energy. It will provide a fillip for the group, which has been hit hard by the fallout from the plunge in the oil price since 2014. This has weighed heavily on Wood’s core North Sea market.
Earlier this month Wood’s chief executive, Robin Watson, said he could not see any sign of an end to the deep downturn in the North Sea that started in 2014.
Wood highlighted continued pressure on activity levels and pricing in the North Sea as the effects of cuts in spending by oil and gas firms rippled across the supply chain.
The company has shed more than 2,000 jobs in the UK and cut or frozen the pay of many people working for it in the country amid the downturn.
Mr Watson yesterday described DONG Energy as a key client. The Danish firm has interests In 14 producing fields in the areas covered by the contract. It is selling interests in five Norwegian fields to Aberdeen-based Faroe Petroleum.
On Monday Wood announced it had won a $1m contract from Norway's Statoil to design a 21 kilometre tie back facility. This will link the Utgard field Statoil is developing in the Norwegian North Sea with production facilities.
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