Oil and gas contractors who have been keeping a close eye on Wood Group may be surprised to learn that the oil and gas company has just acquired fabrication and manufacturing business Enterprise Engineering Services Limited (EESL) in Aberdeen. The acquisition comes after EESL announced that it had appointed administrators.
Wood Group stated that the acquisition boosts its asset integrity management capabilities, and this, in turn, would ensure efficiency and also extend the life of its upstream and midstream assets in the oil and gas sector in the UK.
Once the acquisition is completed, the employees working in the Aberdeen unit of EESL will be transferred to Wood Group and continue working at the fabrication facility.
Wood Group CEO Dave Stewart stated that Wood Group is constantly looking to enhance its value and boost cost efficiencies in the technical solutions that it offers its clients. Stewart went on to say that the acquisition of the fabrication and manufacturing business opens up the order capabilities of Wood Group, allowing it to provide end-to-end solutions to its clients by ensuring the integrity of its assets.
Stewart also stated that Wood Group’s focus was to provide expertise that extends the life of onshore as well as offshore assets, which is important since the UK Continental Shelf is in a mature phase.
Wood Group hopes to leverage EESL’s expertise in providing fabrication and manufacturing solutions to the oil and gas sector and generate more jobs for the Aberdeen unit with the aim to create new employment opportunities.
In the last few months, Wood Group has been downsizing its oil and gas sector workforce, particularly in the UK North Shore. Hence, this acquisition by Wood Group will be closely monitored by oil and gas contractors who have been affected.