Kentz Corp. signs oil contract in Iraq worth up to $110M
Oil and gas services company will provide procurement, engineering, project management and construction services.
MONTREAL — SNC-Lavalin’s recently acquired Kentz Corp. has signed a three-year project management contract in Iraq with a major international oil company that could be worth up to $110 million.
The contract is the first since the Montreal-based engineering and construction company acquired UK-based Kentz in August for $2.1 billion.
Kentz was the first big acquisition for CEO Robert Card, who was hired after the engineering firm disclosed financial irregularities two years ago that led to the departures of several top executives.
The oil and gas service company with about 20,000 employees will provide procurement, engineering, project management and construction services.
The firm is reducing its global workforce by about 9%, including 1,000 positions in Canada.
Analyst Sara O’Brien of RBC Capital Markets called the contract “positive” for SNC which has been able to “enhance its core engineering and construction business in oil and gas.”
© 2014 The Canadian Press