Scottish firm gets K1.5b Exxon deal

 By GYNNIE KERO

SCOTTISH firm Wood Group has been awarded a £450 million (K1.55 billion) contract from Exxon/Mobil to do maintenance work on its facilities once it goes into production next year.

Wood Group is an international energy services company with around US$7 billion sales, employing about 43,000 people worldwide and operating in 50 countries. 

The group has three businesses – Wood Group Engineering, Wood Group PSN and Wood Group GTS providing a range of engineering, production support, maintenance management and industrial gas turbine overhaul and repair services to the oil and gas, and power generation industries worldwide.

Under the contract, Wood Group PSN (WGPSN) will provide brownfield engineering and procurement support to ExxonMobil’s operations in PNG, including construction and maintenance services to both the Hides gas conditioning plant in the highlands, and the LNG plant northwest of Port Moresby. 

The contract will take effect starting next month.

WGPSN Australia & Asia Pacific managing director Matt Gavin said: “We are thrilled with the award of this contract, which enables us to cement our position in the Asia Pacific LNG market. 

“WGPSN has a long history with ExxonMobil globally, providing operations and technical support through integrated brownfield and engineering service contracts in Australia and Asia Pacific, the United States and Africa.” 

The initial five-year contract is understood to be worth between £300 million (K1 billion and £450 million (K1.55 billion), with the possibility of the deal being extended for two further two-year terms.