Mustang, a company owned by FTSE 250 engineering firm Wood Group, has won a contract for a deep water production facility in the Gulf of Mexico.
The customer, US outfit Anadarko Petroleum, expects the site to produce 80,000 barrels of oil per day and 450 million standard cubic feet of gas per day.
The project, in the so-called "Lucius field", is located in 7,100 feet of water.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Detailed engineering is scheduled to be completed in the third quarter of 2012 and first production is expected in 2014.
Shares in Wood Group, also known as John Wood Group, have risen 15% this year. Over the last five years the firm is up 157%.
Anadarko Petroleum was one of the companies involved in the ill-fated Macondo well in the Gulf of Mexico last year. The company paid UK integrated oil giant BP $4bn in cash to settle its share of liabilities from the Macondo disaster.
BS
-
Review: The Terrace in Ventnor – a foodie stay on the Isle of WightTravel Natasha Langan embarks on a seafood and wine adventure on the Isle of Wight from The Terrace in Ventnor
-
Jeremy Hunt: Tech and defence will make Britain great again - investors should stay or risk missing outFor investors shifting away from the UK, tech and defence may well be opportunities worth staying for, the former chancellor Jeremy Hunt says.
