John Wood Group wins $250m Brunei contract extension
Wood Group awarded $250 million contract extension for services on Brunei Shell Petroleum’s offshore assets
- BSP is a joint venture between the government of Brunei and oil giant Shell
- Wood said services would be provided to BSP’s 20 largest offshore installations
- Apollo Global Management is interested in acquiring John Wood Group
John Wood Group has won a two-year contract extension worth approximately $250 million (£197 million) to provide services to Brunei’s largest energy producer.
The Scottish engineering and consultancy firm said the new deal would focus on upgrading Brunei Shell Petroleum’s offshore energy resources to improve production capacity while reducing emissions.
The services the business division aims to provide range from construction to procurement, brownfield engineering and offshore fleet management.
Contract: Wood Group said the new deal would focus on upgrading Brunei Shell Petroleum’s offshore energy assets to improve production capacity while reducing emissions
Wood said services would be provided to BSP’s 20 largest offshore installations, which are responsible for about 80 percent of the company’s total oil and gas production.
BSP is a joint venture between the government of Brunei Darussalam and oil giant Shell, which employs about 4,000 people and 20,000 contractors, according to its website.
Shell’s presence in Brunei goes back at least to 1929 when the British Malayan Petroleum Company discovered oil in the Seria field in northwestern Borneo.
Ken Gilmartin, Wood’s chief executive, said: ‘This extension demonstrates progress in our strategy, which focuses on reimbursable projects and complex work in critical industries that we laid out last year, and demonstrates the strength of our relationship with a key client in an important region.
“It is also a testament to our track record of excellence in performance, safe operations and innovative technical expertise.
“The award also highlights our continued focus on ensuring energy security across the region while minimizing impact on the environment.”
Wood Group shares were up 1 percent Monday morning to 136.6 pence, but have fallen by more than three-quarters over the past five years, mainly due to the slump in oil prices in the lockdown era, forcing energy companies to cut back on new projects.
The latest deal follows a turbulent year for the Aberdeen-based group, which was a takeover target for private equity house Apollo Global Management.
After rejecting four proposals, Wood agreed to go public in April when the US asset manager made an offer of 240 pence per share.
But the following month, Apollo decided to walk away without explanation, meaning it can’t make another approach until November.