John Wood Group PLC Retains Lucrative North Sea Contract

Wood Group (LSE: WG) announced another coup this morning, retaining its lucrative contract with Dana Petroleum for integrated support services in the North Sea.

This means that the energy industry support provider will mark more than 14 years of continuous service as prime contractor on the Triton FPSO vessel.

The retention of its contract with Dana Petroleum — worth £40m per annum — signals Wood Group’s seventh contract extension in the North Sea for the year to date, following deals with CNR, TOTAL E&P UK, Teekey, Ithaca Energy, Nexen and ConocoPhillips.

UK managing director Dave Stewart commented:

“”We have provided support to the Triton FPSO vessel for more than 14 years and are delighted to continue this contract with the new operator. Dana Petroleum is a dynamic new operator and securing this piece of work positions us well to support Dana Petroleum as it continues to grow its business in the UK.”

While UK operations manager for Dana Petroleum, Richard Lyon, stated:

“”Dana has a determined growth strategy and Wood Group PSN has shown a commitment to helping us achieve this. This contract further enhances our long-term commitment to the UKCS.”

Wood Group’s shares were little changed in early trade this morning, but have increased almost four-fold in the last five years since 2009’s low of 237p.

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> Sam does not own shares in Wood Group.