Wood Group Wins $160 Million Contract from Brunei Shell

A newly formed joint venture, SKSWood Sdn Bhd, comprising a subsidiary of John Wood Group PLC, Syarikat Kejuruteraan Sistematik (SKS) and Petrokon Utama Sdn Bhd has been awarded a 5-year integrated services contract, with a 5-year extension option, by Brunei Shell Petroleum Company Snd Bhd (BSP) for the maintenance & upgrading of offshore facilities and the execution of offshore projects in Brunei Darussalam. The contract will be worth an estimated $32 million a year to the joint venture.

"We are delighted to have been awarded this contract, which is a significant step towards the further establishment of Wood Group as a major provider of world-class services to the important Asian energy sector," said Bill Edgar, Group Director for Engineering & Production Facilities. "Wood Group's impressive track record in the training and development of local national workforces played a major role in us winning the award of this contract."

The contract specifies a set of targets for continuous development of Bruneians as well as local business opportunity and participation, using local suppliers and sub-contractors over the duration of the contract. The contract should enable SKSWood to create a competence base on which to expand and take on similar work within and outside Brunei Darussalam.

"SKSWood won our tender against stiff competition from other experienced local and international companies," said Haji Aji Haji Hitam of Brunei Shell Petroleum. "The SKSWood joint venture brings together established local contractors with Wood Group's worldwide experience. We look forward to a long, successful relationship which provides innovative, low cost solutions to our offshore engineering programmes whilst continuing the sustainable development of Bruneian contractors and personnel in accordance with Brunei Shell's Local Business Development strategy."

SKSWood has begun mobilization and will be fully operational by early 2004.