Wood Group wins $2.8bn Abu Dhabi contract

Troubled Aberdeen-based engineering and consulting giant John Wood Group said it has been awarded a $2.8 billion contract by the Abu Dhabi National Oil Company (ADNOC) to deliver an engineering, procurement and construction management (EPCm) package for the long-term gas processing facilities at the UAE’s Habshan facility.

The project will be delivered by more than 500 Wood engineering, project management and commissioning specialists based in Abu Dhabi with support from the company’s global engineering hubs

“The contract value includes pass through revenue, with Wood anticipated to recognise c $400 million of revenue through EPCm services,” said Wood.

Wood’s scope includes the delivery of substantial upgrades and debottlenecking solutions to the existing Habshan and Habshan 5 gas processing mega-complexes and pipelines, including brownfield modifications and the installation of new facilities.

The Rich Gas Development (RGD) project will increase efficiency and modernise the facility to support increased gas output from ADNOC’s upstream expansion. Habshan is one of the largest gas process complexes in the world.”

Wood CEO Ken Gilmartin said: “ADNOC Gas’ RGD programme is pivotal to the UAE’s energy security strategy and broader economy. We’re proud to be at the heart of such a significant initiative.

“Wood gained extensive knowledge of Habshan delivering the front-end engineering design and we will deliver the EPCm phase while the facilities remain fully operational in order to sustain critical gas supply.

“This win reinforces our position as a leader in highly complex engineering and project delivery solutions at considerable scale.”