ABERDEEN, Scotland, July 13 (UPI) -- Scottish oil and gas services company Wood Group said it built on its trajectory during the market downturn by landing a contract extension in the North Sea.
The company said its contract with Apache Corp. to provide engineering and consultant services to the entire portfolio of North Sea operations was extended by two years.
"The extension of this contract to provide our technical solutions support across Apache's North Sea portfolio is testament to our strong, collaborative working relationship with Apache and their confidence in our high standard of service delivery," Wood Group CEO Robin Watson said in a statement.
Wood Group, which has offices in Aberdeen, Scotland, and Houston, has notched a series of victories even as crude oil prices struggle to extend a rally beyond $50 per barrel. Exploration and production budgets for most energy companies are tight as crude oil prices remain far below levels above $100 per barrel common two years ago.
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For undisclosed companies, the company in May said it landed two three-year contracts valued at more than $140 million to provide support for operations in southern Iraq, creating more than 100 new jobs in the process.
Wood Group this year cut rates paid to its North Sea contractors by about 9 percent because of negative market pressures. The company's rate reduction followed a 10 percent decrease for onshore contractors in 2014.
The North Sea energy sector is in for a long period of decline, with less than $1.4 billion in new spending expected in 2016, compared with an average of around $7 billion in the last five years.
