Wood Group share price rises as it books new Saudi Aramco contract

 
Caitlin Morrison
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A general view shows the Saudi Aramco oi
Wood Group will help develop one of Saudi Aramco's fields (Source: Getty)

Engineering services firm Wood Group has won a new five-year contract with oil giant Saudi Aramco to develop its Marjan oil field in Saudi Arabia.

The exact value of the contract was not revealed, but Wood said it was a multi-million dollar deal. Shares in the group rose more than 2.5 per cent in early trading.

Wood Group, which bought Amec Foster Wheeler for £2.2bn last year, has worked with Saudi Aramco for more than 30 years. In November 2017, the two companies entered a memorandum of understanding "demonstrating Wood’s continued commitment to creating and accelerating opportunities for local workforces in the Kingdom of Saudi Arabia".

"We look forward to working in close partnership with Saudi Aramco to bring our broad and enduring expertise in engineering and project management to this project, which is significant for both our client and the Kingdom of Saudi Arabia," said Robin Watson, Wood’s chief executive.

"Our focus will be applying our ingenuity, range of capabilities and in-country knowledge to ensure its safe and successful delivery.

"We have been operating in the Middle East for around 75 years and continue to ambitiously pursue opportunities to leverage our global expertise and grow our presence in the region. Our commitment to growing capability and capacity in the Kingdom will be demonstrated further on this contract, where we will focus on nurturing talent, providing employment opportunities and partnering with the supply chain."

Saudi Aramco is still looking to list this year, with London, Hong Kong and New York said to be among the main contenders for the location of the float.

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