Wood Group, of Aberdeen, has announced a £564million contract win in the Middle East.
The group’s gas-turbine service (GTS) division is to build Israel’s largest private power station for Dorad Energy.
It is Wood Group’s largest contract win to date in the Middle East country.
The Aberdeen energy service company said yesterday that power construction projects were a key growth area, with 17 schemes having been completed worldwide to date.
The Dorad project will be the biggest that GTS has carried out anywhere.
Up to 500 people will be working on the development during a 36-month period, with most employed by local partners and subcontractors.
Construction work is due to begin shortly.
The natural gas-fired plant will provide about 8% of Israel’s installed power-generation capacity.
Mark Papworth, chief executive of Wood Group GTS, said: “The landmark Dorad power plant will be one of the first major operational independent power producers following Israel’s deregulation of electricity markets.
“As the global economy recovers and an increase in power generation is required, we expect a robust market opportunity for additional gas-fired power-generation capacity.
“We intend to continue to develop our EPC (engineering, procurement and construction) activities, supporting our clients’ new power-plant requirements both in the Americas and the eastern hemisphere.”
Shares in Wood Group rose after news of the Dorad deal, but ended the day 1.3% lower at 488.8p.
Numis Securities analyst Matthew Lambourne said: “The market likes it. It’s a reasonably high-value contract for the group.”
