Wood Group eyeing potential Canadian acquisition

Wood Group is looking to acquire a Canadian company as a way to expand its own production services network (PSN) brownfield group there. Wood Group Chairman Allister Langlands described the potential move as driven by large current capital expenditures in the country that the company expects to feed a very long tail of operating expenditures.

Langlands described Colombia “as a good open competitive market” in response to being asked where he saw potential for Wood Group to grow in the next 5-8 years, concluding the company would continue to grow its business there. He also described Africa as very important and noted that as international oil companies and large European and North American independents continued to develop Angola, Nigeria, Mozambique, and Uganda opportunities for Wood Group to expand in that region would emerge.

“The Caspian—and Kazakhstan in particular—is another area to grow,” said Langlands. “We’d like to do more in the Middle East [as well], but we’re being selective. “Middle East customers, principally the national oil companies, like to buy on an [engineering, procurement, and construction] fixed-price basis. That doesn’t fit our risk profile or what we think we’re good at.” He went on to say that Wood Group would likely do small engineering projects and brownfield support in the region, but wouldn’t be pushing to become a major construction company there.

When asked about increasing its presence in Qatar in particular, Langlands acknowledged both that it’s a place Wood Group should be doing more business and that the company was a bit late there. “Most of the spending has been downstream there, rather than upstream,” Langlands continued, “because you’ve got one large field producing all this gas. It’s more about what you do with it. But in the production area moving forward we’d certainly like to do more.”

Australia was the next area flagged by Langlands, who noted that the seven LNG projects in the country were “about two thirds of the way through” capex that would likely lead to large opex opportunities.

Russell Grant, Rolls Wood Group (Repair & Overhauls) Ltd. RB211 project manager, said the division was applying the joint-venture model it established in Malaysia in 2005 as Rolls Wood OTEC Sendirian Bhd.—building a turbine repair and overall site for the Rolls-Royce RB211 turbine in-country and training local staff—to its recently established Rolls Wood Brazil Ltd. venture to support the Petrobras turbine fleet.

An alternate approach is being used toward China. Rolls-Royce turbines sold there have so far been serviced by Rolls Wood. Rolls-Royce, however, has subsequently provided PetroChina with a license which will allow them to do some of their own maintenance. PetroChina has built a site but not yet put it into operations. Grant said Rolls Wood “expects to see engine carcasses [in Aberdeen from China] for probably the next 12 months,” but in that period will also train PetroChina technicians in the processes and inspection criteria needed to carry out their own maintenance, still sending parts that need repair to Rolls Wood for refurbishment and return.

Contact Christopher E. Smith at chriss@ogjonline.com.

Related Articles

Statoil reduces capital budget by $2 billion following 4Q losses

02/06/2015 Statoil ASA has reduced its organic capital expenditure to $18 billion in 2015 from $20 billion in 2014. The move comes on the heels of a fourth qu...

Chinese regulators approve Sinopec’s plan for grassroots refinery

02/06/2015 China’s National Development and Reform Commission (NDRC) has approved Sinopec Beijing Yanshan Petrochemical Co. Ltd., a subsidiary of China Nation...

BOEM schedules public meetings about draft proposed 5-year OCS plan

02/06/2015 The US Bureau of Ocean Energy Management will hold the first of 20 public meetings in Washington on Feb. 9 to receive public comments on potential ...

Union strike ongoing at US refineries as negotiations continue

02/06/2015 A strike by union workers at nine US refining and petrochemical production plants remains under way as the United Steelworkers Union (USW) continue...

NCOC lets $1.8-billion pipeline contract for Kashagan field

02/06/2015 North Caspian Operating Co. (NCOC) has let a $1.8-billion engineering and construction contract to ERSAI Caspian Contractor LLC, a subsidiary of Sa...

AOPL releases 2015 safety performance and strategic planning report

02/06/2015 The Association of Oil Pipe Lines is committed to further improvements despite a 99.99% safe petroleum liquids delivery rate, AOPL Pres. and Chief ...

MARKET WATCH: NYMEX oil price bounces back up somewhat

02/06/2015 Crude oil prices on the New York market bounced up $2/bbl to settle slightly above $50/bbl Feb. 5. The positive momentum continued during early Jan...

Congressional Republicans renew bid to halt sue-and-settle maneuvers

02/05/2015 Calling it an affront to regulatory accountability that results in unchecked compliance burdens, US Sen. Charles E. Grassley (R-Iowa) and US Rep. D...

Oil-price collapse may aggravate producing nations’ other problems

02/05/2015 The recent global crude-oil price plunge could be aggravating underlying problems in Mexico, Colombia, and other Western Hemisphere producing natio...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected