The steady stream of contracts with one of the world's largest oil companies continued Thursday, with Amec Foster Wheeler landing a deal with Saudi Aramco.
The Saudi Arabian Oil Co., known commonly as Saudi Aramco, formed a joint venture partnership on Wednesday that aims to spend at least $5 billion on a new facility in the east of the country that would support the offshore oil and gas sector.
Amec Foster Wheeler, the target of an all-share offer from Scottish counterpart Wood Group, said Thursday it was awarded a five-year contact from Saudi Aramco to support an expansion project at the multi-billion dollar Marjan oil and gas field in eastern Saudi Arabia.
"This latest award for this major oilfield expansion program is a real vote of confidence in our technical expertise and our ability to deliver large and complex projects, plus our long-term commitment to local development," Nick Shorten, the head of exploration and production projects for Amec Foster Wheeler, said in a statement.
The award follows statements of concern from the front office at Amec Foster Wheeler. CEO Jonathan Lewis said in April that last year saw a record gain for renewables, particularly solar power, though a decline in oil and gas activity was expected for 2017.
Wood Group, meanwhile, cut about 35 percent of its payroll and drew down overhead costs by $96 million last year.
Amec Foster Wheeler said the core focus of the expansion project in Saudi Arabia would be to facilitate natural gas processing.
Shareholders for Amec Foster Wheeler vote on the Wood Group offer later this month.
Financing sought for Russian pipeline through Turkey
Talks are underway to secure financing to build a natural gas pipeline through Turkish territory, a deputy chairman at Russian energy company Gazprom said.
The natural gas company has a planned $700 million investment in a project that will cross through Turkish territory in an effort to tap deeper into the European market. Most of Russia's gas for Europe runs through the Nord Stream pi … read more
