Wood Lands $200M ExxonMobil Contract for PNG LNG Brownfield Work
Wood has secured a five-year, $200 million construction services contract from ExxonMobil PNG to support brownfield projects across the PNG LNG project in Papua New Guinea, World Oil reports.
Market Impact
The contract covers work at the Hides Gas Conditioning Plant, the LNG plant at Caution Bay, roughly 700 km of pipeline infrastructure, and associated well pads and flowlines. More than 200 Wood personnel in Papua New Guinea will handle project management, civil and structural construction, piping and mechanical work, and electrical and instrumentation services, along with scaffolding, lifting and rigging support.
Steve Nicol, Wood’s chief operating officer of Operations, said the company has supported ExxonMobil PNG “to deliver safe and reliable PNG LNG Project operations” for more than a decade and will now “play an important role in maintaining and enhancing critical facilities that underpin the PNG LNG Project’s infrastructure.” The brownfield scope is aimed at sustaining production, processing, and transport of natural gas for LNG exports to Asian markets. Wood has worked with ExxonMobil PNG since 2013 on engineering, procurement, construction, and operational services.
What It Means for Subcontractors
- Civil, structural, piping, mechanical, and electrical and instrumentation (E&I) firms have a five-year window to pursue subcontract packages tied to the Hides Gas Conditioning Plant and Caution Bay LNG plant.
- Scaffolding, lifting, and rigging contractors should position now, since Wood’s scope explicitly names these as standalone service lines within the $200 million award.
- Pipeline and flowline maintenance crews can expect recurring brownfield work across the roughly 700 km of PNG LNG pipeline infrastructure and connected well pads over the contract term.
- Firms with prior ExxonMobil PNG or Wood project history have an edge, given the operator’s decade-plus relationship with Wood dating back to 2013 on engineering and construction services.
- With more than 200 Wood personnel already staffed in-country, local and regional labor suppliers should reach out to Wood’s PNG operations team to confirm sub-tier hiring and staffing needs tied to this contract.
