Wood Group Wins 6-Year Supply Contract from PanAmerican Energy

Wood Group ESP Argentina, a subsidiary of John Wood Group, has been awarded a six-year contract from PanAmerican Energy LLC for the supply and installation of electric submersible pumping (ESP) systems. The contract is valued at approximately US $120 million.

The contract covers three oilfields in the San Jorge Basin south of Buenos Aires, including the Cerro Dragon field, Argentina's most productive oilfield. In addition to the ESP systems, WGESP Argentina will supply field services, electrical maintenance services, testing and repair of equipment, operational data collection, data base maintenance, and application engineering support for the 500 units currently installed.

WGESP Argentina was first awarded a contract with Bridas in this region 10 years ago. That initial five-year contract more than doubled the life of the ESP units in the Piedra Clavada oilfield, a field also included in the newest contract. Bridas then joined with BP to form PanAmerican Energy, now the second largest oil and gas producer in Argentina, and offered WGESP a second five-year contract in 2000.

The most recent contract supports PanAmerican's development of a significant secondary recovery project in its mature fields. As water injections and corresponding water volumes increase, WGESP Argentina's equipment and services will be vital to the project.

'The excellent performance of products and services delivered by Wood Group ESP Argentina in fulfilling the 2000 contract was a driving force behind PanAmerican Energy's decision to select us for this current project,' said Jorge Sanchez, general manager of WGESP Argentina. 'The teamwork between the two companies and the development of local suppliers shows the firm commitment that PanAmerican and Wood Group have with the local community.'

Wood Group is an international energy services company with $2.3bn sales, employing more than 14,000 people worldwide and operating in 36 countries. The Group has three businesses-Engineering & Production Facilities, Well Support, and Gas Turbine Services-providing a range of engineering, production support, maintenance management and industrial gas turbine overhaul and repair services to the oil & gas, and power generation industries worldwide.

Wood Group ESP is a leading service provider and manufacturer of electric submersible and surface pumps. Focusing on SmartSolutions(R) for its clients, Wood Group ESP provides cost-effective solutions tailored to the needs of oil producers throughout the world. With facilities in the Middle East, Far East, Latin America and Russia, as well as several in the United States and Canada, Wood Group ESP focuses on adding real value to customer assets with testing, service and surveillance coupled with cutting-edge engineering.