Wood Group secures £40m Premier Oil contract for North Sea platform services
Wood Group has secured a 50 million US dollar (£40 million) contract with Premier Oil to deliver energy services to two North Sea platforms.
The two-year deal will see the firm providing topside operations and maintenance to the Balmoral floating production vessel (FPV) and the Solan installation.
The move secures the future of more than 150 jobs and builds on a separate contract from 2014 to deliver fabric maintenance services to the Balmoral FPV.
Dave Stewart, chief executive of Wood Group, said: "This contract clearly demonstrates the strong partnership we have developed with Premier Oil in the North Sea, renewing our support of the Balmoral FPV and broadening our delivery to include the Solan field, which came on stream in April 2016."
The announcement comes after Wood Group revealed earlier this month that it had reached an agreement to take over rival Amec Foster Wheeler in a £2.2 billion deal.
The Aberdeen-based firm said the tie-up will result in "significant cost and revenue synergies" of at least £110 million a year.
Wood Group employs 29,000 people while Amec has 35,000 workers and the new entity would be valued at around £5 billion.
Debt-laden Amec had planned to launch a £500 million rights issue to bolster its balance sheet, but those plans have been suspended following the offer from Wood Group.