Wood Group awarded £500m offshore deal with Talisman

Aberdeen-based Wood Group has been awarded a new contract worth £500m with Talisman Energy.

The new five-year deal will see the firm provide operations and maintenance services on all 11 of Talisman's UK offshore platforms and at the Flotta oil terminal on Orkney.

The contract is worth £90m per annum, with an option to extend for a further five years.

Talisman has also extended its existing engineering contract with Wood Group.

That deal is worth £50m annually and will now run until the end of 2012.

Bob Keiller, chief executive of Wood Group, said: "We are delighted that Talisman has chosen to continue its long-term relationship with Wood Group PSN.

"This decision reflects the company's successful delivery of Talisman's requirements over the last eight years.

"We will build on this success by supporting Talisman in delivering its operational excellence strategy to assure both our long term futures in the North Sea."

Wood Group has about 1,400 staff working under the contracts with Talisman, with 1,100 based on Talisman offshore sites and onshore sites, and 300 based in Aberdeen and Glasgow.

Across the UK, Wood Group has a workforce of almost 7,000.

Geoff Holmes, senior vice president of Talisman Energy (UK) Limited, said: "This is a significant piece of the jigsaw in terms of delivering improved safety and operational performance at our 12 Talisman UK sites.

"Wood Group PSN's expertise is providing highly competent maintenance and operations personnel and the award of a contract of this duration demonstrates the confidence we have in Wood Group PSN's proven capabilities."