John Wood Group PLC (Wood), a global engineering and consultancy company, has announced a significant contract extension with Shell UK Limited, securing $120 million to provide brownfield engineering, procurement, and construction (EPC) services for onshore and offshore assets across the United Kingdom. This two-year extension reinforces Wood's long-standing partnership with Shell and underscores its expertise in supporting critical energy infrastructure.

The cost-reimbursable contract focuses on delivering brownfield EPC services, encompassing upgrades, modifications, and maintenance of existing facilities. Wood will also provide crucial subsea and integrity management for key assets. The scope of the agreement covers several strategically important locations, including the St Fergus and Mossmorran onshore terminals, vital hubs in the UK's energy network. Offshore, Wood's expertise will be deployed at the Nelson, Gannet, and Shearwater platforms, contributing to the continued safe and efficient operation of these production facilities.

A notable addition to this contract extension is the inclusion of EPC services for the Penguins Floating Production Storage and Offloading (FPSO) vessel. This demonstrates Shell's confidence in Wood's capabilities to manage complex projects in diverse operational environments, including the challenging offshore setting of the Penguins field. The Penguins FPSO is a critical component of Shell's operations in the North Sea, and Wood's involvement highlights the importance of this asset to the overall contract.

Ken Gilmartin, CEO at Wood, expressed his enthusiasm about the continued collaboration with Shell, stating, "We are proud to continue our decades-long relationship with Shell in the UK, focusing on the continued delivery of safe, reliable energy supply." Gilmartin emphasized the dedication and expertise of Wood's workforce, adding, "The extension is recognition of our people and their commitment to deliver best-in-class outcomes for our clients." This sentiment underscores the importance of skilled personnel in delivering complex engineering projects and maintaining high safety standards.

The contract extension will provide continued employment for approximately 240 Wood employees, securing valuable jobs in the UK's energy sector. This reinforces Wood's commitment to investing in its workforce and fostering local talent. The continuity of employment ensures that the project benefits from the accumulated knowledge and experience of the team, contributing to efficient and effective project execution.

Wood initially secured the original EPC contract with Shell in 2021. This extension builds upon the successful collaboration between the two companies over the past years, demonstrating Wood's ability to consistently meet Shell's requirements and deliver high-quality services.