Wood Group awarded Caltex contract extension in Australia

Energy services giant Wood Group has been awarded an extension on a maintenance contract from Caltex Australia worth 45m dollars.

The additional 18 months' work (from June 2013) follows a three-year contract awarded to Wood Group's PSN (WGPSN) division to provide maintenance management, mechanical and support services to two Caltex refineries in Brisbane and Sydney.

WGPSN, which provides brownfield services to the oil and gas industry, employs over 200 people at both sites.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Matt Gavin, WGPSN Managing Director for Australia & Asia Pacific said: "We have been able to deliver tangible maintenance performance improvements across both refineries since this contract was awarded and this extension is testament to Caltex's confidence in WGPSN.

"It also further cements our credentials as a leading industrial maintenance service provider in Australia."

Gavin said that since the contract started in 2010, WGPSN has seen a marked reduction in the backlog of maintenance work, a significant improvement in maintenance compliance and "pleasing increase" in scheduled work delivery.

"This has translated to improved reliability and performance at both sites and will hopefully help Caltex achieve its goal of becoming a top quartile performer for maintenance and reliability when compared to other refineries in the Asia Pacific region."