Aberdeen-headquartered Wood Group (LON: WG) has been awarded a $120 million contract extension by Shell UK to provide brownfield engineering, procurement and construction (EPC) to onshore and offshore assets across the UK.
The two-year, cost-reimbursable contract extension, centres on providing brownfield EPC services, as well as subsea and integrity management, at the Shell UK-operated St Fergus and Mossmorran onshore terminals and the Nelson, Gannet and Shearwater offshore assets.
New to the contract scope, Wood is also providing EPC services on the Penguins FPSO.
Shell recently re-started production at the field off the east coast of Shetland, adding a brand-new manned vessel.
Having been discovered in 1974, the Penguins field operated from 2003 and ceased production of oil and gas in 2021.
Wood CEO Ken Gilmartin said: “We are proud to continue our decades-long relationship with Shell in the UK, focusing on the continued delivery of safe, reliable energy supply. The extension is recognition of our people and their commitment to deliver best-in-class outcomes for our clients.”
The contract extension will be supported by around 240 Wood employees.
Wood secured the original EPC contract in 2021.
Last year saw Shell hand out two international contracts to Wood, one for work on its Australian Prelude floating liquified natural gas facility, and one for pre-front-end engineering and design work on the Blue Horizons hydrogen project in Oman.
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