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Oil and gas company wins sixth major contract of the year

Category: Scotland Business News — Mark on July 12, 2013

An Aberdeen-based energy services provider to the oil and gas industry has won yet another major contract extension in the North Sea – the sixth such award in 2013.

Wood Group PSN has signed a three-year extension to its maintenance, operations and technical support deal with Nexen Petroleum.

It will see Wood group continue to provide services to the Buzzard and Scott platforms. The contract also covers hook-up and commissioning services to the Golden Eagle development when it comes online in 2015.

Coming on the back of five other such deals in the year, the firm’s managing director for its UK operations, Dave Stewart, said:

“We are delighted to have secured an extension to this significant contract.”

Stewart went on to underline the importance of customer relations as being key to his firm’s recent extensions. However, many Scottish companies are facing testing times with their business partners.

Increasingly, invoice payments are running late, putting strain on often long standing contracts. Many are taking positive action though, finding that invoice discounting and invoice factoring facilities can help relieve such pressures. Many firms have found that such deals allow contracts to be extended, and longer payment terms granted.

For Wood Group’s part, extensions this year have included deals signed with CNR, Ithaca Energy, Teekey and Total.

The values of most of the deals have not been disclosed. However, the firm’s continuing long-term provision of services to ConocoPhillips, extended for a year last week, is expected to bring another £40 million into the company.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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