Aberdeen-based consulting and engineering giant John Wood Group plc said it has been awarded a new $46 million, three-year contract by TotalEnergies in Iraq.

Wood said it will provide front-end engineering design (FEED), detailed design, procurement support, and construction and commissioning assistance for the first phase of the Associated Gas Upstream Project, part of the Gas Growth Integrated Project (GGIP) in Southern Iraq.

The GGIP includes the recovery of gas currently flared in the Basra region to supply power generation plants, along with the construction of a seawater treatment unit and a 1GW solar power plant.

The contract will be delivered by Wood’s teams in Basra and Dubai, creating 100 new positions.

Wood currently employs over 1,300 people in Iraq and the UAE.

Shaun Dewar, Senior Vice President of Operations, Middle East and Africa at Wood, said: “We are proud to support TotalEnergies on this project, which aligns with our shared commitment to pursue a secure and sustainable energy supply.

“We have a long-standing history of delivering engineering and consulting services in the region and this contract reaffirms our reputation for excellence.

“This project will improve environmental sustainability through emissions reduction efforts. As part of this agreement, Wood will also continue to invest in local employment and skills development in the Basra region.”

Wood Group said on June 5 that after feedback from shareholders it “decided to engage” with Dubai-based firm Sidara, which on May 29 made “a fourth and final” cash takeover proposal for Wood.

The proposal of £2.30 per share would value Wood Group at about £1.59bn, representing a premium of 52% to its closing share price before the first bid was made.

Wood, one of Scotland’s biggest listed firms, employs more than 35,000 people in 60 countries.