Aberdeen-based oil-services company Wood Group (www.woodgroup.com) has won a framework agreement to provide ‘study engineering’ for North Caspian Operating Co’s (NCOC) offshore and onshore asset portfolio in Kazakhstan.

The group says that the new contract “extends our support of NCOC, as we are currently delivering the concept and preliminary front-end engineering design work for the Kalamkas-Khazar co-development project.”

It also has a multi-year engineering, procurement and construction contract in support of Kashagan operations, through its joint venture — PSN KazStroy JSC.

Dave Stewart, CEO of Wood Group’s Asset Life Cycle Solutions business in the eastern region, said in a company statement: “We have demonstrated our commitment to investing in the development of local talent in Kazakhstan, and we have cemented strong relationships with the region’s supply chain.

“We will remain firmly focused on maximising regional employment opportunities and leveraging our partnerships with local companies under this new framework agreement.”

Wood Group has also confirmed that its acquisition of rival group Amec Foster Wheeler for $2.7 billion should be completed in the second half of this year.

It initially predicted annual cost savings up to £110 million, against one-off costs of about £190 million. On 5 April, it announced that the cost savings could reach £150 million.

A company statement said: “The oil and gas market has continued to present challenges, and our year-to-date performance is down on 2016. However, recent awards and renewals demonstrate good customer support, and we are seeing the enduring benefit of structural cost reductions achieved in 2016.”

The Wood Group predicts a stronger performance in the second half of the year. Analysts are also forecasting higher revenues in 2018 than in 2017, along with higher profits.