Aberdeen companies come together to form global giant
16/12/10 09:56 Filed in: Granite Chips
The announcement that Aberdeen’s Wood Group
has reached a £600 million agreement to acquire fellow Aberdeen company PSN
looks like a very positive move for Aberdeen as it builds its position in the global oil and gas industry.
Big is not always better. But, in the world of oil and gas, where the global marketplace for the new combined company’s operations, is valued in excess of US$50 billion annually, you have to think big. Together Wood Group and PSN will have a global workforce of 22,000 people. Elon platform in Equatorial Guinea, topsides and jacket designed by Wood Group
Following the acquisition, the companies say, Wood Group Production Facilities will be the world’s leading brownfield production services provider.
This is an example of the way that Aberdeen’s 300 international oil-sector businesses have developed their international business, firmly establishing the city as an upstream oil and gas centre second only to Houston. Many of these hundreds of specialist companies report that 60%, or more, of their business is now carried out in international oil provinces, outside the UK.
The challenge, for the sake of future generations, must be to anchor these businesses and their expertise here so that – when the North Sea fields run dry – Aberdeen retains its role as the technical and HQ operations centre.
Developments like the Wood Group acquisition of PSN seem set to underpin that future.
The Wood Group acquisition of PSN is subject to relevant anti-trust approvals.
- The Wood Group had revenues of US$5.2 billion in 2008. Based in Aberdeen it operates in 50 countries with 80% of its business being conducted overseas. PSN, also based in Aberdeen, employs 8,000 people and operates in 23 countries, it is expected to generate US$1.2 billion of revenues in 2010.