Positive Industry News and Events

Positive Industry News and Events

Wood Secures $200 Million, Five-Year Construction Services Contract With ExxonMobil PNG

Wood has been awarded a five-year, $200 million construction-services contract supporting ExxonMobil PNG’s operating PNG LNG Project, with work spanning gas conditioning, liquefaction, pipelines, well pads and flowlines.

Published by Allstream Insiders

Allstream Insiders Summary

Wood has secured a new $200 million, five-year construction-services contract from ExxonMobil PNG in support of the ExxonMobil PNG-operated PNG LNG Project.

Wood said the contract will support brownfield project delivery across the Hides Gas Conditioning Plant, the LNG plant at Caution Bay, an approximately 700-kilometre pipeline network, and associated well pads and flowlines in Papua New Guinea.

More than 200 Wood personnel in Papua New Guinea are expected to provide project management; civil and structural construction; piping and mechanical work; electrical and instrumentation services; and support services including scaffolding, lifting and rigging.

The award is a construction-services agreement supporting an operating LNG system. Wood described the work as focused on brownfield delivery and on maintaining and enhancing facilities that support the PNG LNG Project’s infrastructure.

What does Wood’s ExxonMobil PNG contract cover?

The five-year agreement covers construction services for brownfield work across the upstream, pipeline and LNG-plant portions of the PNG LNG Project. Wood identified the Hides Gas Conditioning Plant, Caution Bay LNG plant, the project’s pipeline network, well pads and flowlines as the infrastructure within the contract’s stated scope.

Contract detail Company-reported information
Contractor Wood
Client ExxonMobil PNG
Reported contract value $200 million
Term Five years
Project supported ExxonMobil PNG-operated PNG LNG Project
Reported asset coverage Hides Gas Conditioning Plant; LNG plant at Caution Bay; approximately 700 kilometres of pipeline; associated well pads and flowlines

What construction disciplines are included?

Wood said its Papua New Guinea team will provide a multi-discipline construction-services package rather than a single trade scope. The named services include:

  • Project management
  • Civil and structural construction
  • Piping and mechanical work
  • Electrical and instrumentation services
  • Scaffolding, lifting and rigging support

Steve Nicol, Wood’s chief operating officer for Operations, said Wood’s role is to provide construction services that help maintain and enhance critical facilities underpinning PNG LNG infrastructure, with a focus on asset integrity and reliable operation.

Why does the award matter for the PNG LNG Project?

The contract places long-term construction support across multiple parts of the existing PNG LNG value chain, from gas conditioning and field infrastructure to the pipeline network and liquefaction plant. Wood said the work is intended to support the safe, reliable and efficient operation of infrastructure supplying LNG to customers across Asia.

Wood has worked with ExxonMobil affiliates globally for more than 85 years and said it has provided engineering, procurement, construction and operational services on energy projects in Papua New Guinea since 2013. The new award extends that relationship through a defined construction-services program for PNG LNG.

Allstream analysis: What should the market watch?

The announced award is meaningful because it identifies a confirmed, multi-year construction-services program with work spanning both upstream facilities and LNG infrastructure. The scope is explicitly centered on brownfield delivery, including facilities associated with gas conditioning, pipelines, wells, flowlines and liquefaction.

The release identifies Wood as the construction-services provider and names the core disciplines it will supply. It should therefore be read as a confirmed service award to Wood—not as a separate announcement of a new LNG train, new field development or individual subcontract awards.

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