Wood secures $850m in contracts, fuels growth in the Middle East

Global consulting and engineering company Wood has recorded milestone growth in the Middle East region having secured $850m in contract wins over the last 12 months.

According to the company, this has been driven by heightened demand for conventional and low carbon energy supply, focusing on decarbonisation, energy optimisation, asset life extension and energy transition solutions.

Having recruited over 700 new employees throughout the region, Wood has developed a range of projects across the Middle East including the development of a carbon dioxide (CO2) transportation and storage network that the company says will increase the current global capacity of CO2 storage by approximately 25%.

Wood has also signed a contract extension in Iraq with a long-term client to continue delivering front end engineering design (FEED), procurement and EPC contract management solutions.

Through the elimination of flaring, the company is also supporting a project to reduce emissions in the country by more than ten million tonnes of CO2 per year.

“As a key strategic region for Wood, we see continued growth and opportunity across the Middle East,” said Ken Gilmartin, CEO at Wood. “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 enable future.”

In addition to signing a long-term multi-million-dollar engineering and procurement services contract in Qatar, Wood has developed pre-FEED and FEED services for both onshore and offshore clients in the UAE.

“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 nad developing our in-country talent,” added Gilmartin.

In 2016 the company launched one of its flagship development programmes in Iraq. The Basrah Graduate Scheme has now supported more than 60 University of Basrah graduates since its inception.

Race to Net Zero

The role that the Middle East could play in decarbonising the global economy was highlighted during last year’s COP28 summit.

Ahead of the event, Prakash Sharma, Vice President, Scenarios and Technologies Research at Wood Mackenzie, said about the region, “It has the potential to carve out new niches, industrial manufacturing and generate hubs for emerging technologies.”

“Saudi Arabia and the UAE have set sights on becoming energy transition leaders as they look to carbon capture, utilisation and storage (CCUS) and low-emission fuels such as hydrogen, ammonia and methanol, as well as green steel, cement and aluminium.”

Despite many countries in the region setting ambitious targets, the region’s emissions are still forecasted to remain at current levels of two billion tonnes CO2 through to 2050 in Wood Mackenzie’s base case, with the Middle East expected to reach Net Zero by 2065 in the pledges scenario.

In its ‘Energy Transition Outlook: Middle East’ report, Wood Mackenzie stated that – to reach Net Zero – the region must electrify and deploy new technologies in its industrial sector, electrify 75% of its road transport fleet and meet this increased power demand through fully decarbonised supply.

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