Engineering giant Wood Group has underlined its progress in the Middle East after securing $850 million (£671m) in contract wins in the region during the past 12 months.
The confirmation comes two weeks after Aberdeen-headquartered Wood issued a trading update in which it said annual earnings will come in slightly ahead of expectations as it progresses with a three-year strategic overhaul plan led by chief executive Ken Gilmartin. The company is seeking to reduce its reliance on the oil and gas sector in favour of clean power alternatives.
Wood said growth in the Middle East has been driven by demand for conventional and low carbon energy supply, focusing on decarbonization, energy optimization, asset life extension and energy transition solutions.
The group has recruited more than 700 new employees in Iraq, the Kingdom of Saudi Arabia, Qatar, and the UAE and expects to create a further 500 jobs.
“As a key strategic region for Wood, we see continued growth and opportunity across the Middle East," Mr Gilmartin said. "We have supported energy security in the region for more than eight decades and are excited to play a key role in its energy transition, designing a lower carbon, digitally enabled future.
“Our recent success is testament to the hard work and dedication of our remarkable team and our unwavering commitment to delivering exceptional value for our clients and developing our in-country talent.”
Notable wins have included the development of a CO2 transportation and storage network that will increase current global storage capacity by approximately 25%, as well as feasibility studies and preliminary front end engineering design for both carbon capture and storage (CCS) and low carbon hydrogen projects.
Wood also secured a contract extension in Iraq with a long-term client to continue delivering front end engineering design, procurement and contract management solutions for the delivery of safe and efficient operations. Wood is also supporting a significant project to reduce emissions in the country by more than 10 million tons of carbon per year through the elimination of flaring.
Roughly 40% of Wood's bidding pipeline now comes from sustainable solutions. More than 3,000 of the group's global workforce of 36,000 are located in the Middle East, where it runs the four-year Basrah Graduate Scheme in Iraq.
Other recent contract wins in the region include a long-term multi-million-dollar engineering and procurement services agreement in Qatar, as well as services for both onshore and offshore clients in the UAE.
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