ABERDEEN, Scotland, April 4 —British oil services company Wood Group said it was given a contract extension by a Middle East company to continue operations in the North Sea.
The Abu Dhabi National Energy Co., known also as TAQA, extended a contract for Wood Group by two years.
“Under the contract, which has the option of three, one year extensions, Wood Group will continue to deliver engineering, construction and maintenance services to five offshore assets,” the company said in a statement.
Wood Group this year cut rates paid to its North Sea contractors by about 9 percent because of negative market pressures. The company’s rate reduction follows a 10 percent decrease for onshore contractors in 2014. The company said additional cutswould give the company the room needed to move through the market downturn.
James Crawford, the regional managing director for Wood Group, said the agreement with TAQA builds on a longstanding and efficient partnership with the company.
“Our commitment is to work in collaboration with our client to prioritize safety and maximize efficiency and productivity,” he said in a statement.
A February report from Oil & Gas U.K. finds regional exploration activity offshore is at an all-time low and there are no signs of improvement. Less than $1.4 billion in spending on new projects is expected in 2016, compared with an average of around $7 billion in the last five years.
TAQA last year reduced spending by 52 percent. No terms of the contract extension for Wood Group were offered.