Wood Group wins two contracts in southern Iraq

John Wood Group has won a pair of three-year contracts in Iraq worth a combined $140m.

Wood Group's PSN arm, fresh from securing key North Sea oil contracts with Shell last week, has been awarded the two contracts to work on a significant onshore asset in southern Iraq for a major, but unnamed, oil company.

The contracts are to provide brownfield engineering design, detailed engineering, project management, procurement services, system completion and commissioning support for operations and start-up on the project.

Wood said the contracts, which will be delivered by the southern Iraq office it opened last year, are effective immediately and will create more than 100 new jobs.

“These two significant contract wins demonstrate Wood Group’s commitment to working closely with key clients to extend our operations in Iraq, where we see a growth market that complements our broad service capabilities, international knowledge and strong expertise," said WGPSN's eastern region managing director, David Buchan.

“Establishing an office in Dubai and a base in Iraq reflects our intention to build lasting customer relationships and focus on the development of our Iraqi workforce and supply chain partnerships.”

Wood Group said on Wednesday that it would cut 300 onshore jobs in the UK as it opened a period of consultation with 1,000 onshore staff due to “cost and efficiency challenges” in the industry that saw it cut 8,000 jobs last year.

The company is facing potential strikes from union members who are predicted to reject tougher contract terms that include longer hours and lower pay, with strikes possibly hitting projects across the North Sea including decommissioning work on Shell's giant Brent oilfield.