Aberdeen-based international energy service company Wood Group has announced a £95million-plus contract win in the US.
News of the deal came yesterday as Wood also said its overall performance for the year to date continued to be in line with management expectations.
Wood Group GTS has landed an engineering, procurement and construction contract from GWF Energy for the Tracy Peaker station in Tracy, California.
The project will convert the plant, which consists of two gas-turbine generators, to a combined-cycle operation using two heat-recovery steam generators and a single steam-turbine generator.
Mark Papworth, chief executive of GTS, said: “We are proud to have GWF as a long-standing Wood Group GTS customer in California, and this important project builds on that strong relationship.”
Wood said in yesterday’s interim management statement that, in engineering, higher bidding volume and recent contract awards were expected to contribute to an improvement in performance in the second half and into next year.
In addition to securing detailed design work for Chevron’s Jack and St. Malo deepwater project in the Gulf of Mexico, the company was active on several front-end engineering design studies for projects in the US gulf and west Africa.
Wood added that its production facilities arm remained active in the North Sea for a wide range of clients and continued to focus on developing its presence in international markets including Angola and Australia, where a joint venture with Wagners secured its second contract in the coal-seam methane market recently.
The group said that, in well support, its electric submersible pump business continued to make good progress in developing its international presence.
It added: “The US rig count continues to provide good momentum for our pressure-control and logging services. In addition, pressure control maintains a good international order backlog.”
The company said the gas-turbine service aftermarket remained relatively soft, but was expected to deliver an improved second-half performance based on higher underlying activity and cost-reduction initiatives.
Wood said it believed the fundamentals for oil and gas services and gas-fired power generation remained strong and it was well positioned to deliver good medium-term growth.