£18m deal for Wood to work on Mexican oil fields

WOOD Group has won a contract worth up to $28 million (£18 million) to complete engineering work on new oil fields off Mexico following the country’s move to open up its oil and gas market to international firms.

The Aberdeen-based oil ser vices giant has been appointed by state-owned Pemex to work on its plans to develop eight significant finds it made in the Gulf of Mexico under a three-year deal.

Wood Group, which is led by chief executive Bob Keiller, will provide services ranging from field development planning to designing production facilities and associated subsea infrastructure.

The appointment comes in the wake of the Mexican government’s decision last year to allow foreign firms to produce oil and gas to help maximise the potential of the country’s huge reserves.

Pemex had a monopoly on production for 75 years.

It wants to tap into the expertise offered by international oil ser vices companies to help it compete.

This could create opportunities for services firms to win work to offset the slowdown in new project activity in other areas that has followed the crude price slump.

Wood Group believes the skills it has developed in areas such as the Gulf of Mexico after starting out in the North Sea means it has much to offer.

It said: “Mexico’s energy reform is leading to significant development of the country’s oil and gas industry and Wood Group offers Pemex unparalleled Gulf of Mexico expertise.”

The group added it will offer an integrated solution that includes best practices for offshore and complex facilities, which will help to expand Mexico’s offshore capabilities.

The fields Wood Group will work on include five in deep water, such as the Piklis find made in 2011. The other three are ultra heavy oil fields, including the Ayatsil find made in 2008.

Royal Dutch Shell, a deep water specialist, has expressed enthusiasm about working with Pemex on projects.