Aberdeen’s Wood (LON:WG) has landed a second contract with Esso Australia, a move that it claims will create 250 jobs.
The engineering services company has been awarded work to provide long-term maintenance solutions for onshore and offshore assets in the Gippsland Basin, located in the state of Victoria.
Wood will provide maintenance services and shutdown support at the Longford and Long Island Point facilities and in the Bass Strait.
The work laid out under the contract is set to kick off this month.
The Gippsland Basin is a 50-50 joint venture between operator Esso Australia and Woodside Energy.
Late last year Woodside (ASX: WDS) announced that it was set to delist from the London Stock Exchange.
The last day of trading for Woodside shares in London was 19 November with the firm delisting the following day.
Recently, Wood secured a five-year contract renewal to continue delivering brownfield engineering, procurement and construction (EPC) solutions across the same Gippsland Basin assets.
Ashley Kelty, director and oil and gas research analyst at Panmure Liberum, wrote: “No contract details given, but this is a big win for the company and the two contracts for Esso Australia should deliver significant revenues in the coming years.”
The Bass Strait is the largest single source of natural gas for the domestic market in Australia. The site accounts for around 40% of the east coast of Australia’s demand.
Wood CEO Ken Gilmartin commented: “This contract award recognises the quality of our delivery capability, our commitment to safe operations, the skills and expertise of our people and our enduring relationship with Esso Australia.”
Wood sells off UK turbine firm
Wood firm kicked off this year by offloading its stake in Aberdeen-based Ethos Energy, as it found a buyer in the form of a US private equity firm.
The Aberdeen energy services firm agreed on the deal with One Equity Partners (OEP) for a final net cash consideration of $138 million, with $42 million of prior planned loan notes replaced by an additional cash consideration at completion.
An agreement with Ethos parent companies Wood and Siemens Energy AG was reached to sell the complete business to OEP in August and the deal was completed on the last day of 2024.
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