Wood Group secures new six-year deal with Shell in the Philippines

John Wood Group announced on Monday that it has secured a new six-year contract with Shell to provide asset management services to the Malampaya deepwater gas-to-power project in the Philippines.

The FTSE 250 company said it would provide maintenance services, modifications and shutdown support as part of the contract, which covered Shell's onshore facilities in Batangas and offshore assets in the Malampaya field, near Palawan Island.

It said the contract would be supported by Wood's established local presence in Manila and regional upstream hub in Kuala Lumpur, creating 60 new positions.

“This win is a powerful example of a revenue synergy achieved by the combination of Amec Foster Wheeler and Wood Group's broad capabilities and depth of experience,” said Wood Group chief executive Robin Watson.

“As Wood, we bring together our successful track record and local knowledge developed from working on these offshore assets and onshore gas plant, and our strong global operations and maintenance expertise.

“The contract also grows our operations and maintenance business in the region, expanding our footprint in south-east Asia and creating new and enhanced opportunities for the local workforce.”

The company said the new contract added to its support of the Malampaya project, where it had provided integrity management of subsea pipelines since 2001.

Wood Group also successfully completed the front-end engineering design, and engineering, procurement and construction of the onshore gas plant in the late 1990s and early 2000s, providing further asset support to the gas-to-power facility under a long-term agreement.

The Malampaya deepwater gas-to-power project represented “one of the largest investments” in the history of the Philippines, the board explained.

It was the start of the country's natural gas industry supplying gas to provide 3,200 megawatts of power to meet about 30-50% of the country's power generation requirements.