ConocoPhillips (COP - Free Report) has extended its service contract with Wood Group. Per the one-year extension, Wood Group will continue to provide operations and maintenance services as well as facilities’ modifications services to ConocoPhillips’ 50 assets in the North Sea. The manned and unmanned facilities are located primarily in the Southern and Central North Sea. ConocoPhillips awarded Wood Group the service contract first in 1992.
Wood Group is a leading international energy services company that provides a range of engineering, production support, maintenance management and industrial gas turbine overhaul & repair services to the oil & gas and power generation industries worldwide.
Houston, Texas-based ConocoPhillips is a major globally integrated oil company engaged in the exploration and production of oil and natural gas, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.
With leading positions in both natural gas and heavy crude oil in North America, as well as a legacy position in the North Sea and growing exposure to lucrative international regions, ConocoPhillips expects to replace reserves and sustain production growth over the long term. ConocoPhillips' exploration initiatives toward liquids-rich plays are gaining momentum through the Eagle Ford, Bakken and North Barnett shale plays.
Again, ConocoPhillips completed the spin-off of its refining/sales business into a separate, independent and publicly traded company, Phillips 66 (PSX) in 2012. With this, ConocoPhillips shifted its total focus to upstream operations and thus oil and gas prices play a major role in determining its performance.
Despite these positive factors, the company’s performances are expected to be weighed down by unpredictable global economic conditions and uncertain oil & natural gas prices. We also remain cautious about the geopolitical risks associated with international activates and operational challenges.
We have a Zacks Rank #3 (Hold) for ConocoPhillips – the third biggest U.S. integrated oil company after ExxonMobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) .