BP hands out multi-region deal for offshore assets to UK oilfield services provider

UK-headquartered energy giant BP has awarded a long-term, multi-region deal, covering its offshore portfolio, to Wood Plc, a compatriot oilfield services provider. This contract will enable the UK player to support BP’s “efficient and safe” energy production.

Wood revealed on Wednesday that it had been awarded a five-year, multi-region engineering services contract by BP to support “efficient and safe” energy production through the provision of asset repairs, modifications and enhancements.

According to Wood, this reimbursable deal, valued at around $350 million, will be delivered via “agile working methods” to optimise cost and delivery performance, enabling operational efficiencies to be realised across BP’s offshore installations.

Craig Shanaghey, Executive President of Operations at Wood, remarked: “This opportunity is exciting for Wood because it has allowed us to think big, knowing that with BP’s own bold ambitions, we can help meet the world’s energy needs as efficiently as possible. We have an extensive track record with BP and, for the first time, this multi-region approach allows us to combine these contracts into one single delivery model that puts exceptional execution, innovation, and simplification at its heart.“

The oilfield services provider outlines that this agreement renews its existing contracts to support BP to produce energy “safely, efficiently, and reliably, as the world contends with the dual challenges of energy security and transition.”

Brian Chalmers, responsible for Wood’s global relationship with BP and President of Strategy and Development for Operations, commented: “I am delighted that we will have the opportunity to drive a step change in the performance of BP’s offshore portfolio. We have proven that when we work in partnership, we can deliver transformational outcomes that support BP’s ambition to drive higher efficiency and productivity across their assets.”

Wood’s operations business unit will lead this multi-region contract with a centralised contract management team and local delivery teams, supported by the firm’s global execution centre.

This deal comes only a day after the announcement that BP picked GW Integrated Solutions LLC (GWIS), a consortium consisting of Australia’s Worley and Grand Isle Shipyard (GIS), for a five-year deal encompassing its offshore assets in the U.S. Gulf of Mexico.

When it comes to Wood’s recent deals elsewhere, it is worth noting that the UK player was contracted by the Australian government in July 2022 to supervise the first decommissioning phase for a 274-metre-long FPSO, which is located in the Timor Sea off Australia.