Aberdeen energy services giant Wood Group said today it had landed £500million of contract renewals with Talisman Energy (UK).
The Wood Group PSN division has been awarded a five-year deal, with an option to extend for a further five years, to provide operations and maintenance services on all 11 of Talisman’s UK offshore assets and at the Flotta oil terminal on Orkney.
The contract will be worth £90million a year and began today.
In addition, Talisman has also extended Wood Group PSN’s engineering and modifications services deal, worth £50million annually, until the end of 2012.
Wood has around 1,400 people working under the contracts with Talisman.
Bob Keiller, chief executive of Wood Group PSN, said: “‘We are delighted that Talisman has chosen to continue its long-term relationship with Wood Group PSN.
“This decision reflects the company’s successful delivery of Talisman’s requirements over the last eight years.
“We will build on this success by supporting Talisman in delivering its operational excellence strategy to assure both our long-term futures in the North Sea.”
Geoff Holmes, senior vice-president of Talisman Energy (UK), added: “This is a significant piece of the jigsaw in terms of delivering improved safety and operational performance at our 12 Talisman UK sites.
“Wood Group PSN’s expertise is providing highly competent maintenance and operations personnel and the award of a contract of this duration demonstrates the confidence we have in Wood Group PSN’s proven capabilities.
“Coupled with our recent decision to transfer (the employment of) 170 offshore supervisors from Wood Group PSN to Talisman, which significantly strengthens the site leadership team, this contract will help deliver our long-term strategic goal of safe, efficient production over the next 10 years.”
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