Wood Group Signs Long-term Maintenance Agreement with Suez

Wood Group Gas Turbine Services division, part of international energy services company, John Wood Group PLC, ("Wood Group"), has been awarded a 16-year contract by subsidiaries of Suez Energy International ("Suez") for the maintenance of eight General Electric Frame 9E Gas Turbines located at the former Al-Rusail Power Company in the Sultanate of Oman. The 16-year contract, worth approximately $92 million, was awarded to Wood Group and includes an innovative, risk sharing arrangement around the management of major maintenance for the 665 MW power plant.

"Following our 2004 contract award with the GLOW Group in Thailand, a subsidiary of Suez, we are delighted to be working with them again on a significant power project," said Mark Papworth, Chief Executive Officer, Wood Group Gas Turbine Services. "It was the willingness of Suez and Wood Group to approach this deal as flexible, solutions-oriented partners working together to provide an optimal solution that resulted in significant value for both companies. We are very excited about this opportunity and look forward to working together with Suez in Oman."

This contract extends the portfolio of Wood Group's long-term contracts worldwide and represents another successful step forward in demonstrating its broad range of services and highlights Wood Group's ability to provide an aligned, risk-sharing and value-added solution to its customers.

Miklós Almásy de Zsadány, Senior Vice President of Suez Energy Middle East, said, "This contract, along with those in place at GLOW, clearly shows that Wood Group's solution-orientated approach can bring significant value to power plant owners and operators."

SUEZ, an international industrial Group, designs sustainable and innovative solutions for the management of public utility services as a partner of public authorities, businesses and individuals. The Group aims to meet essential needs in electricity, natural gas, energy services, water and waste management. The Group employs 157,650 people worldwide and achieved revenues of EUR 41.5 billion in 2005, 89% of which were generated in Europe and in North America.

SUEZ Energy International (SEI) is one of the four business lines of SUEZ. With headquarters in Brussels, SEI offers global solutions in energy and services to customers in North America, the southern cone of Latin America, Asia and the Middle East. It develops, builds and operates energy facilities both in electricity and gas, including liquefied natural gas (LNG). It transports and distributes natural gas and LNG in several countries outside Europe. SEI is also active as a trader around its assets and as a marketer in electricity and gas, and offers energy related services to industrial and commercial customers.

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Posted 25/01/07

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