Troubled Aberdeen-based engineering and consulting giant John Wood Group said it has been awarded a series of decarbonisation contracts with a value of $100m for flare gas reduction and carbon efficiency project solutions across the largest oil fields in Iraq.
This follows news that Wood has secured $2 billion of contract awards across Asia Pacific in the past 12 months, making for a record-breaking year for the company in the region.
Wood has received a “holistic non-binding” conditional takeover proposal from Dubai-based Sidara worth about £242 million or 35p per share in cash. Last year, Wood rejected a cash takeover proposal from Sidara worth about £1.4 billion or £2.05 per share, before the Aberdeen firm became engulfed in problems.
In Iraq, Wood said it will deliver brownfield engineering, procurement and construction (EPC) and modifications solutions to enhance operational efficiency and minimise environmental impacts, in support of Iraq’s commitment to reduce gas flaring by 78% by the end of 2025.
Wood has a decades-long track record of providing decarbonisation solutions for major operators in Iraq and has implemented the country’s largest flare gas reduction programme to date.
Ellis Renforth, President of Operations for Europe, Middle East and Africa said: “We are working in partnership with our clients to achieve Iraq’s energy ambitions and deliver a sustainable energy future for the country.
“Wood Iraq has extensive knowledge of our clients’ infrastructure, operations and goals, enabling them to improve operational efficiency and reduce the impact of gas flaring while maintaining critical production.”
The reimbursable contracts will be delivered by Wood’s team in Iraq and the UAE. Wood will recruit 60 new employees to support the successful delivery of these projects.
In Asia Pacific, Wood said earlier this week it has been awarded new contracts in addition to extensions and renewals to advise, design, execute and operate major energy and mining projects and infrastructure across Australia, Brunei, Papua New Guinea, Singapore, Timor Leste and the Philippines.
Ralph Ellis, President of Asia Pacific Operations at Wood said: “Demand for energy and resources in the Asia Pacific region continues to soar. For over 40 years, we’ve been helping major operators with specialist consulting, engineering, project delivery and maintenance solutions to deliver on their ambitions.
“This period of strong performance reflects the talent of our 5,500 exceptional employees in the region, dedicated to solving our clients’ challenges. We see continued demand for integrated engineering, project delivery and operations solutions across every stage of the asset life cycle. Our pipeline of opportunities underpins Wood’s continued growth in the region.”