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Oil & Gas

Wood Group leaps on expansion of BP engineering contracts

Shares in John Wood Group PLC (LSE:WG.) surged 10% higher to 71.5p after it won three contracts to provide engineering and deliver capital projects for BP PLC (LSE:BP.) worldwide for the next three years.

A new master services agreement has been signed for engineering, procurement and construction management (EPCm) services, as well as two extensions to existing long-term frameworks for front-end engineering and design.

The EPCm agreement has the potential for extensions of an additional four years, though that depends on everything going smoothly.

Wood Group, which has been working with BP since 2022, said the agreements have been extended to cover both offshore and onshore upstream units, midstream and downstream energy markets.

There will be a "clear focus on digitally enabled delivery as well as asset decarbonisation".

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