Embattled Aberdeen-based engineering group John Wood Group said on Thursday it has been awarded a $120 million contract extension by Shell UK Limited 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,” said the company.

“New to the contract scope, Wood is also providing EPC services on the Penguins FPSO,” said the company.

John Wood Group 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.”  

Wood shares have fallen about 80% in recent months amid an independent review by Deloitte following “exceptional contract write-offs” and a “difficult” trading update for the year ended December 31, 2024.

On February 14, Wood said the Deliotte review was continuing and revealed: “The company is initiating steps to strengthen significantly the group’s financial culture, governance and controls in light of material identified weaknesses and failures.”

On February 19, Wood said its chief financial officer (CFO) Arvind Balan had resigned following “the incorrect description of his professional qualifications in various statements in the public domain.”