Wood Group has signed a $500m contract with BP to service its offshore Azerbaijan project.

The five-year contract for Wood's PSN division continues the group's 40 year history of working with BP and is effective immediately, with the option of two, two-year extensions.

David Buchan, WGPSN's eastern region managing director, said the new contract award reflected the strong relationship with BP.

"Our focus is on leveraging our knowledge across this portfolio of assets and our expertise in engineering, procurement and construction, to ensure their efficient, effective and safe productivity," he added.

"We are committed to hiring and developing local personnel, building partnerships and supporting supply chain companies in the communities where we operate. This is reflected on this contract where more than 50 per cent of the workforce will be from the region with a focus on increasing local employment opportunities further, as the contract progresses."

PSN will support the following platforms: Chirag, Central Azeri - Production Drilling Quarters, Central Azeri - Compression and Water Processing, East Azeri Production Drilling Quarters, West Azeri- Production Drilling Quarters, Deep Water Gunashli - Drilling & Utility Quarters, Deep Water Gunashli - Pressure Compression and Water Utilities and Shah Deniz Stage 1.

Wood Group's Kenny arm is already providing subsea engineering services to BP's eight offshore Azerbaijani platforms under a multi-million dollar contract announced in October 2015, which also includes support of BP's existing subsea infrastructure in the Gulf of Mexico, UK and Norwegian continental shelves.