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Wood Group cashes in on North Sea work

WOOD Group said it has continued to cash in on strong activity levels in the North Sea and highlighted the appeal of the expanding unconventional oil and gas market in the US.

In an update on trading, the Scottish oil services giant said the engineering division is particularly active on subsea and pipeline activity in the North Sea where majors are developing some giant new projects.

The Aberdeen-based company said growth in the division that works on existing facilities, Wood Group PSN, has been underpinned by a strong performance in the North Sea.

A boom in investment in the North Sea driven by strong global demand for oil and gas has generated lots of business for services companies.

Wood said the division's growth has also been driven by high activity levels in North America, particularly in the US shale regions.

In September, Wood Group agreed to buy Mitchell's Oil Field Services for up to $182.5 million (£113m) to grow its presence in the US oil shales market.

Yesterday industry body Oil & Gas UK welcomed the Coalition Government's decision to allow shale gas exploration in the UK with new controls.

Wood group told investors: "Performance for 2012 is anticipated to be in line with expectations.

"We anticipate further good growth in 2013."

Analysts at Cannacord Genuity said growth in the engineering division appeared to be slowing. But analysts at Credit Suisse told clients Wood Group is continuing to do well.

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