In Aberdeen, Wood Group has openeda new custom-built apprentice school at its RollsWood Group (RWG*) facility that will provideyoung people with a four-year training programmeinvolving on-the-job training, plus mentoring andday release courses.

Nine apprentices have already startedwork at the new premises established by RWG,which is a 50/50 joint venture between Rolls-Royce PLC and Wood Group. The company hasinvested in four dedicated fulltime trainers who

will also be responsible for the new starts plusthe 13 apprentices already undergoing a four-yearapprenticeship. By increasing apprenticeshipopportunities and offering specialised training,RWG is focusing on meeting growing industrydemands for resources.

*RWG provides maintenance, repair and overhaul serv-ices for Rolls-Royce gas turbines used in the globalpower generation, oil & gas, industrial andmarine markets

WOODNEWS

MARCH 2008The International Magazine for Wood Group People

Training capabilities enhancedby new apprentice school

Martyn Morrice mentorsSimon Chalmersat Rolls Wood Group,Aberdeen

Stuart Birse (left) with Simon Chalmers

contents

Reinvestingin communities.Page 5

COMMUNITY 5

HS&E 8

FEATURE 6

Children in Colombialearn about protectingthe environment.Page 8

Check out thewebsite makeover.Page 6

For further news and groupinformation visit:

www.woodgroup.com

Engineering &ProductionFacilitiesEngineering design, constructionmanagement and commissioning,to brownfield engineering,through production enhancement,operations management, mainte-nance management anddecommissioning services.

Well SupportWell Support offers services,products and solutions designed tomaintain and enhance productionrates from oil fields and gasreservoirs and to control pressureat the well.

Gas TurbineServicesWe are a leading independentprovider of operations, mainte-nance and repair services forgas turbines, steam turbines,generators, and other high-speedrotating equipment, includingpumps and compressors. We alsorepair gas turbine accessories andcomponents and provide fasttrack power plant packages.

Through our three businesses: Engineering & Production Facilities, Well Support andGas Turbine Services - we provide a range of engineering, production support, maintenancemanagement and industrial gas turbine overhaul and repair services to the oil & gas andpower industries worldwide.

WOODNEWS MARCH 2008

Welcome to the latest issueof Wood News. As our interimresults in September indicated, weare continuing to achieve significantbusiness growth. This success,which is due to the invaluablecontribution of our employees,means that we have the opportunityto support a range of communityprogrammes. Some examples ofour latest initiatives can be seen onthe community page where wehighlight what is being done toreinvest in the future of communi-ties where we believe we canachieve a positive impact.

Our reinvestment in people canalso take the form of sharing ourskills and expertise. On p.4 wereport on the ways in which we aresupporting the development of thenext generation. We also take theopportunity to recognise the skillsof our talented engineers, someof whom are achieving internationalrecognition for the quality of theirinnovation and for their commitmentto enhancing the development ofengineering to meet the demandsof today and tomorrow.

All of these articles are alsoavailable on the website, which hasrecently been upgraded to includea wider range of information aboutWood Group. Details can be foundon p.6. This is part of a continuousimprovement programme andI hope that you will also take the op-portunity to give our communicationteams your feedback by using theWood News survey which isbeing distributed with this issue.

Allister Langlands,Chief Executive

DIVISION NEWS

As the interim results announced inSeptember revealed, business progress inthe first six months of this year has beenrobust across our global operations.

Commenting on the positivenews, Sir Ian Wood and Allister Lang-lands said: “In the continuing strong oil& gas market, we are extending ourrange of products and services, andsuccessfully extending our internationalpresence. We are growing our marketposition in the improving power industryand are increasingly confident we willcontinue our performance improvementin this sector. Overall, we expect thestrong growth to continue.”

Strong resultsdemonstraterobustgrowth...

“Growth is robust across the Group, particularly in Engineering & ProductionFacilities and Gas Turbine Services, and management is confidentof improving results given the strongmacro backdrop for Wood Group’sservices.”

“With staff utilisation alreadyhigh, recruitment is key to theGroup’s continued growth.”

“e outlook for Wood Group appears to bestrong. All its businesses are performing aheadof expectations.”

Sir Ian Wood (left) with Allister Langlands

In the markets - Reviewing the results, financial analysts commented onWood Group and indicated their belief in our positive market positioningand outlook:

3

FACTBOX

New work forShell in theGulf of Mexico

Shell Offshore Inc. (Shell) has selectedWood Group to commission its Perdido RegionalHost facility. The platform will be installed in theAlaminos Canyon area of deepwater Gulf ofMexico.

DSI, part of our Engineering & ProductionFacilities division, is working with constructionteams in Texas and Finland providing precommis-sioning and commissioning activities beforethe integration of the topsides and hulloffshore. DSI will conduct final functional anddynamic testing prior to start-up and first oil.

This latest project follows other Shellcontracts including Brutus TLP, Ursa-Crosby

subsea tieback, Na Kika Semi submersible, MarsWater flood, Bonga FPSO and currently the Ursa-Princess Water flood project.

Sister company contributesto Perdido design

Alliance Engineering, oneof Wood Groupʼs engineeringcompanies in Houston, was topsides engineeringcontractor responsible for conceptual engineeringthrough detailed design, procurement assistanceand fabrication support for the Perdido platform.

J P Kenny winscontract for Balearicpipeline project

Enagas S.A. has appointed J PKenny (JPK) to carry out constructionsupervision services for its Balearicsubmarine pipeline project. This isthe latest stage of JPKʼs involvementin the gas pipeline project, as it previ-ously carried out a pre-feasibilitystudy plus basic and detailed designengineering for the project, which isstrategically important to the BalearicIslands.

The project is intended to reducethe current reliance on bottled gasand diesel. It comprises the construc-tion of a 20” gas trunkline from theeast coast of Spain to a dual landfallon Ibiza and then on to Mallorca tosupply natural gas to the islands fordomestic and industrial use.

New Orleans facilitysupports fast trackcapabilityWood Groupʼs gas turbine servicesbusiness is to supply two SolarSaturn® centrifugal compressorpackages to Williams Field Services(Williams) on a fast-track contractusing its streamlined New Orleanspackaging capabilities. The tworefurbished gas compressionpackages will boost Williamsʼ USGulf Coast transmission capacity.

Supplying wellheadsfor emerging UKCoalbed MethaneindustryOur Peterhead-based Well Supportcompany, Wood Group PressureControl Ltd, (WGPC) is supplyingwellhead equipment to several com-panies working in the UK to produceCBM*, including Composite Energywhich has been undertaking anappraisal and developmentprogramme in Scotland utilising itsown drilling rigs and horizontal drillingexpertise. WGPC has also suppliedwellhead equipment to Nexenʼs DoeGreen project, an onshore coal bednear Liverpool.

Perdido is a deepwater regional drillingand production hub located in the Gulfof Mexico. When installed it will be theworld's deepest spar platform.

Commissioning proves the integrity ofoperating and safety systems, reducingstart up risks and preventing cost andschedule overruns.

Customer base expands in

In Mexico, our Gas Turbine Services (WG GTS) division has won two contracts withVitro, one of the worldʼs largest producers and distributors of glass products based inMonterrey. The contracts, worth approximately $1.2 million combined, were awardedto Wood Group Turbine Control Services, Inc who will supply, install and commissionnew control systems for two Rolls-Royce gas turbine-driven generators.

MEXICO FACTBOX*Coalbed Methane (CBM), the productionof natural gas from coal, is an emergingtechnology worldwide but in its infancyin the UK. With reserves of North Seaoil & gas diminishing, methane trappedin deep coal seams could potentiallyprovide a long-term source of indige-nous UK natural gas.

a contract for project managing and engineering its Entrada field development, located in waterdepths of approximately 4,600 feet in the Gulf of Mexico. JPK will provide a range of services for

the field,which will initially be produced as a two-well tie-backto the Magnolia platform. JPK is fast-tracking the project tomeet Callonʼs first quarter 2009 schedule for first oil.

Subsea work for US Entrada project

4

Mustangʼs Young Guns programme, now five years old, providesentry-level engineers with training and mentoring support to integratethem into the Mustang Engineering organisation. It helps new recruitsaccelerate their productivity by providing early opportunities to work onprojects ʻin the fieldʼ.

WOODNEWS MARCH 2008

The programme prepares Young Gunparticipants for eventual industry leadershippositions. It has grown dramatically, thanks tothe support and participation of Mustangʼs seniormanagement and discipline leaders. Here aresome examples of the current projects:

BP Atlantis, Gulf of MexicoRoss Hancock (left) says, “Iʼve been working onthis project for four years. It has been an awe-some opportunity to work on a project from thetime it was just on paper to see the platform builtand almost completed.

I was also Mustangʼs ʻeyes and earsʼ whileon board, reporting back to the structural groupin Houston. As they worked on structural designissues, I provided them with information that isonly available from the field,such as location ofobstructions etc. I found that everything offshoreis bigger than I could have imagined - this newperspective on size will certainly help me tobecome a better engineer.”

Phoenix Park Gas Processors, TrinidadChrista Joosten (left), instrumentation engineer-ing says, “I was in Trinidad for around six weeksto undertake construction support. We per-formed instrument installation inspections, loopchecks and wiring verifications. Being in the fieldwas a great experience; you learn so much overa short period of time.”

Western Refining, El Paso, TexasAnne Stewart applied her electrical engineeringskills to the Western Refining Facility in El Paso,Texas. She explains, “My primary role is toassist Westernʼs electrical engineer in the designof a new distribution system for the main substa-tion. This includes all the engineering for thesmaller substations required for their new amine,hydrogen, ultra-low sulphur diesel and sour acidrecovery units.”

BP Bruce, North SeaRuss Gray is in Scotland part of the Wood GroupEngineering Exchange programme. Working onthe Snow Hood Project for the BP Bruce plat-form, he says, “The office is close to the fabrica-tion shop so I see the project take shape and candiscuss various aspects of construction with thefabricator.”

Western Refining, El Paso, TexasAllison Miller describes life on an operatingplant as ʻhectic and fast pacedʼ. She has beenworking a the Western Refining Facility in ElPaso, Texas and commented, “Plant activitiesare generally based around projects and modifi-cations that were truly needed yesterday!

“This has been an amazing opportunity forme. Iʼve worked on projects as a process engi-neer plus I have also been responsible for carry-ing them to completion as a project engineer.

Jason Janda at the BP Thunderhorsesite.

Young GunsTRAINING

Ross Hancock (right), mechanicalengineering, at the BP Atlantis site.

BP Atlantis site.

Christa Joosten (left), instrumentationengineering - (right) Russ Gray,structural engineering, next to a proto-type Snow Hood at the fabricationworkshop in Aberdeen.

Forming Mustang’s Future

5

Latest update fromthe Wood GroupEngineering Exchangeprogramme.Currently Mustanger, ThomasGarriott, (above), is also partici-pating in the Wood Group Engi-neering Exchange programmein Aberdeen and two youngengineers from the Aberdeenoffice, Matthew Nesbitt andKenny Hay (below), are in Hous-ton working on Mustang projects.

Talisman, North SeaManager, Chris Nichols, usedis structural engineering skillswhile working in Aberdeen onthe Wood Group EngineeringExchange programme. Amember of the team providingconstruction and operationssupport to Talisman, Chris says,“I spent a good amount of timeoffshore on the North Sea plat-forms. It helped me understandthe construction and installationprocesses and exposed me to anew culture and the opportunityto create many new friendshipsand business relationships.”

I work on design but am also involved in procuringitems, interfacing with all disciplines to ensure com-pleteness of design, coordinating construction effortsand completing final inspections. Every day there issomething new to learn.”

Lyondell Plant, TexasDavid Wicker worked on a automation upgradeat the Lyondell plant in Texas where he spent severalmonths during turnaround (shutdown) and start up.He explains, “I was involved in the configuration,testing and support activities during start-up andsupported (off-site) anything related to the plantsafety system-- you get to learn all the details youcanʼt get in the office.”

ExxonMobil Zafiro Producer, Equatorial Guinea,West AfricaBrian Hollowell, mechanical engineering, said, “What I got most out of this assignment was seeinghow the entire project comes together in the field, and how critical my decision as a facilities engineerare to the safety and success of so many people that I will never meet.”

BP Atlantis, Gulf of MexicoJason Reinwald, process engineering, comments, “I also learned that every member of the teamneeds to be ʻsolution-orientedʼ when problems arise and ready to think how we can take whatʼs outthere and make it work.”

BP ThunderhorsePete Sculley, structural engineering, BP Thunderhorse, “Occasionally I have to step up and stop thejob when I see something I donʼt agree with. Anybody has the ability to stop the job, but you still haveto be willing to have the least experience of those around you, but your training tells you that youshould.”

BP ThunderhorseJason Janda (above), mechanical engineering, spent Thanksgiving, Christmas and New Year off-shore to increase his knowledge of the industry. He is working on BP Thunderhorse where he ison location offhshore in the Gulf of Mexico. Jason says “Weʼre providing engineering support forthe topsides systems which Mustang designed and we are also recommissioning many systemsdamaged during the listing incident.”

“As a structural engineer, it was my responsibilityto work with the liing contractor to developsimple, safe liing procedures for each piece ofequipment.” Jason Hrncir

Thomas Garriott

Kenny Hay and Matthew Nesbitt

Allison Miller iwth kent Williamson,head Opertor at the Western Refiningfacility, El Paso, TExas.

Wood Group companies in Colombia celebratedInternational Childrenʼs Day* earlier this year witha range of activities designed to promote environ-mental awareness and raise the profile of safetyin the home and at work. “Our companies Ener-geticós, Wood Group Colombia and Equipo choseto participate in this event to involve the childrenof our employees,” said Carolina Afanador, Com-munications Manager for Wood Group Colombia.“More than 300 children participated in celebra-

tions that includedan outdoor magicalcircus in Bogotá, anecological walk fol-lowed by a cascadeswim in Yopal pluspuppet and storytelling workshops inCartagena andBarranquilla.”

WOODNEWS MARCH 2008

HSE NEWSChildren’s Day in Colombia promotesenvironmental awareness

FACTBOX*Celebrated in a number of differentcountries, International Children’s Dayacknowledges the rights, survival,development and protection of childrenall over the world.

Emerald awardThe Colombian Safety Council has

presented an Emerald Award to Equipo deServicios Petroleros Ltda for its excellentscore of over 97% in the Councilʼs annualaudit. QHSE Manager, Gabriel Vasquez,said, “QHSE staff at Wood Group Colom-bia/Equipo also support our clients as wellother Wood Group businesses in Mexico,Ecuador, Trinidad & Tobago & Brazil.”

Charity donation followssafety milestoneOur BP Contract in the UK, recentlydonated £1,000 to the Juvenile DiabetesResearch Foundation after working 1,000accident free days. The milestone hasbeen achieved by over 700 staff on six off-shore and three onshore assets plus threeengineering offices in Aberdeen, Glasgowand Dorset.

Brazil team hopes tomake EnvironmentWeek an annual eventTo mark ʻI Semana de Meio Ambienteʼ orʻEnvironment Weekʼ our Engineering &Production Facilities team in Brazilfocused on highlighting to employeestheir socio-environmental responsibility.Throughout the week, presentationswere given by Macaéʼs EnvironmentalSecretary's Office, Macaéʼs Estácio de SáCollege and AM Consulting, which pro-vides services and recycling to WoodGroup. For the children of employees,the team also organised an art competi-tion on the theme of ʻWater Planet.ʼ

Gold awardJ P Kenny Pty (JPK), has once againearned the IFAP* Gold Safe Way AchieverAward following a benchmarking exercisecarried out by the organisation against in-ternational best practise. Based in Perth,its achievement owes much to the inputof SHEQ Manager Dave Holland and histeam who have striven for excellence intraining, continuous improvement ofprocedures and actual achievement ofsafety objectives.

FACTBOXIFAP* is the Industrial Foundation forAccident Prevention, an Australianorganisation, which focuses on improvinghealth and safety performance

IN BRIEF

In the UK our teams working at gas plant facilities at St Fergus,Mossmorran and Braefoot Bay plus the Goldeneye offshoreplatform for Shell Exploration & Production in Europe (Shell)have marked an outstanding safety performance recording 14years without a lost timeincident.

Working on three onshore sites plus one offshoreplatform, the Wood Group Engineering (North Sea) team hasattributed its successful safety record to a highly visible man-agement commitment to an extensive gas plant services HSEplan. Jointly developed with Shell, the plan is reviewed atmonthly management meetings and the team has also intro-duced a two-day safety pre-conditioning workshop for all newstarts. In addition, Wood Group is fully committed to the Shellhazard observation system which operates on all gas plants.

“Our gas plant services teams workingon this contract have developed excellent levels of communica-tion between workforce, safety representatives and manage-ment,” said Gary Walker, HSE manager at St Fergus, “Toachieve 14 years without any Wood Group personnel or con-tractor losing time through an accident while working in a livegas plant environment during shutdowns, routine maintenanceand daily operations is a great success. We are allvery proud of achieving this performance.”

Fourteen years ofoutstandingsafety performance

Members of Wood Group's team at Mossmorran, Fife, Scotland.

Children learnabout theenvironmentat Yopal inColombia