UK energy services company John Wood Group PLC (LON:WG.) has signed a technical support services contract with Sakhalin Energy Investment Company, the operator of one of the world’s largest oil and gas projects.
The five-year contract extends Wood Group’s partnership with the operator of Sakhalin-2, which includes Russia's first offshore gas production platform and liquefied natural gas plant.
Wood Group - which earlier this year agreed a £2.2bn merger with contractor Amec Foster Wheeler PLC (LON:AMFW) - has been providing engineering and construction support to offshore and onshore assets on Sakhalin Island in Russia for more than 10 years.
READ: Wood Group raises possible cost savings from its agreed merger with Amec Foster Wheeler
The new contract begins effective immediately and adds brownfield drilling upgrade services to the capabilities Wood Group provides across various assets.
Wood Group's engineering team based in Yuzhno-Sakhalinsk on Sakhalin Island will deliver the work under the contract, supported by the company's offices in Australia, Norway, China and the UK.
Dave Stewart, chief executive of Wood Group’s Asset Life Cycle Solutions business in the eastern region, said: “Our global expertise in brownfield engineering combined with our commitment to developing the capabilities of our 200-strong workforce on Sakhalin Island enables us to successfully provide efficient and effective services that add value for our client.
“This is an exciting and strategically important relationship for the future and one which underlines our ongoing commitment to Russian national content and development.”
Shares edged up 0.32% to 781.50p in morning trading.