UK supermajor BP (LON: BP) and Aberdeen headquartered engineering firm Wood (LON: WG) have formed a strategic alliance for work on global assets.
The Aberdeen business says that it will work to “improve capital efficiency” on BP sites with work kicking off in the North Sea before being rolled out to Trinidad and Tobago later this year.
Wood will be delivering cost-saving measures while boosting value creation within BP’s portfolio.
The north-east business told Energy Voice: “No additional roles but we do have over 300 employees supporting bp contracts in Aberdeen.”
It builds on a five-year, $350m multi-region engineering services contract Wood won across BP’s offshore installations in 2022.
BP also recently formed an alliance with Worley in June for its global site projects. The work focusing on efficiency enhancement will focus on locations where Worley holds a services contract; Gulf of Mexico, Oman, Mauritania and Senegal oil and gas producing regions and the Cherry Point, Whiting, Rotterdam, Gelsenkirchen, and Lingen refineries.
The BP tie-up with Wood comes days after the Aberdeen headquartered firm revealed total half year losses of nearly $1 billion following the collapse of Sidara’s takeover.
Wood said it has given up “lump sum turnkey and large-scale EPC work” to focus on “exciting and complex” jobs including a 6-year contract with Shell for the world’s largest floating offshore LNG facility in Australia and the delivery of a front-end engineering design (FEED) contract on Aramco’s carbon capture project in Saudi Arabia.
© Supplied by WoodKen Gilmartin, Wood CEO, argued that his company’s half year results were “good” while speaking with Energy Voice.
The bottom line loss was a “one-off” as the firm booked non-cash impairments on old contracts largely taken on in its acquisition of Amec Foster Wheeler in 2017.
Martin Simmonite, senior vice president of operations, UK at Wood commented on the news: “The new alliance continues to build on our long-term relationship with BP and complements our multi-regional engineering services contract that was awarded to Wood in 2022.”
This year BP celebrates its 60th anniversary in the North Sea as it also makes progress on its joint venture with Aberdeen City Council, the Aberdeen Hydrogen Hub.
Graeme Gordon, vice president of production for BP North Sea said following the deal: “The formation of this alliance allows us to build on the relationship we have with Wood and innovate on how we deliver safe and efficient site projects together.”
Recommended for you
