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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/wood-strikes-175-billion-ge-deal.jpg"><img class="alignnone size-full" title="Oil and gas services firm Wood Group has announced the sale of its Well Support arm to General Electric" src="http://londonglossy.com/wp-content/uploads/2011/02/min-wood-strikes-175-billion-ge-deal.jpg" alt="Oil and gas services firm Wood Group has announced the sale of its Well Support arm to General Electric"/></a></p>
<p>A UK oil and gas services firm promised to deliver at least £1 billion to shareholders after sealing a major deal with General Electric.</p>
<p>The sale of Wood Group&#8217;s Well Support arm, which makes electric submersible pumps used to maximise oil production, will raise 2.8 billion US dollars (£1.75 billion), with more than half of the proceeds set to go to shareholders.</p>
<p>Aberdeen-based Wood, which is listed in the FTSE 250 Index, will now focus on its engineering and production and gas turbine services divisions.</p>
<p>It said General Electric possessed the scale and reach to ensure the Houston-based Well Support business continued its international growth.</p>
<p>Wood Group chief executive Allister Langlands said: &#8220;The significant investment programme in Well Support over the years and the expertise and dedication of all our people is reflected in the price achieved.&#8221;</p>
<p>Wood shares opened 13% higher.</p>
<p>Following the disposal, which is subject to regulatory and shareholder clearance, Wood said it will return cash of not less than 1.7 billion US dollars (£1 billion) to its shareholders.</p>
<p>It has also pledged to continue its growth strategy of geographic expansion in its core areas. This follows a deal in December to buy Aberdeen-based rival PSN in an agreement worth 955 million US dollars (£600 million)</p>
<p>Wood&#8217;s production arm generates 47% of its revenues from the UK North Sea, but the addition of PSN in areas such as North America, the Caspian and Russia will reduce its dependence on the UK and offer higher margin work.</p>
<p>The group currently employs more than 29,000 people and operates in 50 countries. Well Support has around 3,800 staff worldwide.</p>
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