Wood Group bags another one with Brazilian contract

HOUSTON, June 28 (UPI) -- Scottish oilfield services company Wood Group continued racking up the contracts, saying Tuesday it landed a new deal for developments offshore Brazil.

Subsidiary Wood Group Mustang said it secured a "multimillion dollar contract" from Norwegian energy company Statoil to help develop the Peregrino field off the coast of Brazil.

"Wood Group Mustang's proven ability to deliver cost-effective and efficient solutions was a key enabler to obtaining the contract," CEO Michele McNichol said in a statement.

Statoil owns the Peregrino field in the Campos basin off the coast of Brazil alongside Chinese energy company Sinochem. The company in August said it passed a production milestone with 100 million barrels, roughly four years after operations began.

Peregrino is the eighth largest field in Brazil and accounts for about 12 percent of production for Statoil outside of Norway. The company estimates it holds between 300 million and 600 million barrels of recoverable reserves.

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.

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.