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Wood Group expands in US shale oil and gas market

Wood Group expands in US shale oil and gas market

Aberdeen-based Wood Group has bought a second US firm in a month.

It has acquired Kelchner Inc, a privately-owned provider of construction and energy field services, for an undisclosed sum.

The acquisition follows the £100 million deal to buy Infinity Group, a Texas Gulf Coast industrial construction and maintenance contractor.

Wood Group has more than $7 billion (£4.697bn) in sales and operates energy services in more than 50 countries.

While Infinity serves the petrochemical, refining and gas processing sectors, Kelchner will operate within the onshore business of Wood Group PSN Americas.

It will provide construction capabilities primarily to the midstream and upstream oil and gas sector in the Marcellus and Utica shale basins, and broader industrial sectors.

Kelchner serves the energy and industrial markets providing turnkey compressor and metering stations, civil work, fabrication, roustabout and well pad and roadway construction services.

It operates from headquarters in Springboro, Ohio, and other locations in Eastern USA.

Last year it generated sales of approximately $93m (£62.42m).

Dave Stewart, Wood Group PSN chief executive, said: “The acquisition of Kelchner adds to Wood Group’s geographical footprint in the major US shale regions.

“Kelchner’s construction and energy services strongly complement Wood Group’s engineering capabilities, positioning both companies well for continued success in the region.”

Wood Group announced that William Setter, group financial controller, will become company secretary after Robbie Brown steps down at the end of this month.