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SNC Lavalin’s Kentz Corp. signs oil contract in Iraq

Contract, worth up to $110 million, is the first since the Montreal-based engineering and construction company acquired U.K.-based Kentz in August


November 13, 2014
by The Canadian Press
Image: Thinkstock

Image: Thinkstock

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 U.K.-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.

SNC-Lavalin moved last week to cut 4,000 jobs as part of its efforts to get out of underperforming business segments. The firm is reducing its global workforce by about nine per cent, 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.”