A Scottish Billionaire getting threats from the Shadows

In 2008 Sir Ian Woods grip on the UK Oil Industry was coming to an end. A new upstart was on the horizon, and he was here to take Sir Ians Crown.

Extracted from the new book Sir Ian Wood Aberdeen's Billionaire

61.  2010 Threats From The Shadows

Since the mid-1970s, Sir Ian held the title “undisputed king of the UK's Oil & Gas Industry”. Nearly every CEO in every major oil company in the UK knew him personally and those who didn't were well aware of who he was. As the chairman of his company, Sir Ian adopted a hands-on approach to sales. He insisted on being the primary representative, attending every major crucial meeting, presentation, and bid clarification session. Despite his status, Sir Ian never considered himself above the business development role, understanding it as the linchpin of his company's achievements. His reputation and the fact he was the most recognizable business leader in Aberdeen proved advantageous during critical contract-winning meetings. When Sir Ian entered a client's premises, attendees were not intimidated, because Ian never wanted to give off that aura, but they were in awe. Sir Ian had an uncanny ability not to be intimidating, yet, on the other hand, he was incredibly formidable, giving him a psychological edge, subtly shifting the balance of power in meetings without it appearing so on the surface. In these meetings, the dynamic never positioned Sir Ian as having less authority and control than those he sought to win business from. Sir Ian's calm yet authoritative tone, never arrogant, just matter-of-fact, reminiscent of a skilled lawyer attempting to get a difficult jury onside. When faced with the renewal of a major contract, he would be the first to grab his jacket and head into the offices of his client, making direct eye contact with those executives who held the fate of his company's multi-million-pound contract in their hands. Without a doubt, Sir Ian himself stood as the most influential brand ambassador for Wood Group.

In the Oil & Gas services market, there were several major players, including Aker, Wood Group, Petrofac, KBR, and a few others. However, the industry had reached a point where innovation and revolutionary approaches had dwindled to nearly zero. These competitors essentially provided the same services with varying degrees of cost and professionalism. The processes and activities involved in engineering and repairing North Sea Oil & Gas platforms had seen minimal change in the previous 20 years. The lack of innovation wasn't solely the fault of the service companies. Most Oil & Gas company CEOs consistently made claims that they wished to embrace new technology and innovation but in reality they hated it. Many were just publicising their demands for innovation as a smokescreen to conceal their reluctance and fear of introducing any. A prevailing sentiment within the Oil & Gas industry existed "we only want to be second" when it came to adopting innovation. No Oil company wanted to be the first, and this mindset persists today. Proposals for new innovations were often met with scepticism and requests for proof that a major Oil & Gas company elsewhere had already utilised a proposed new technology, innovators could never get a “first”. This attitude closed the door on any potentially groundbreaking innovations. Despite the smokescreen, middle management in many Oil & Gas companies were still genuinely convinced their employers' boards were actively seeking innovative solutions to enhance operational efficiency. However, the real Instruction was, just maintain the status quo, innovation was to be talked about, not implemented. Wood Group found those same clients, consistently requesting presentations on new innovations or revolutionary ideas. The Industry was stuck in this vicious circle of screaming about a lack of Innovation, but secretly rejecting every such suggestion they saw. Innovation for Oil operators was a no go area, Oil production was king and all Innovation had the potential to do, was interfere with that. 

In Aberdeen, two major clients represented more than half the entire spend of the North Sea, Shell and BP. They often chose to keep Wood Group and their other main contractors as their primary engineering contractor. This decision was influenced by the trust developed over the years and their fear of potential consequences for awarding those significant maintenance contracts elsewhere. While acknowledging Wood Group as a highly capable contractor delivering precisely what operators needed, it also meant that Wood Group was not under pressure to introduce new elements of process and engineering innovation into the equation.

In July 2009, Wood Group received notification that Shell intended to re-tender their Oil & Gas platform maintenance contract the following year. This huge contract encompassed 80% of all offshore-operated Oil & Gas platforms in the North Sea owned by Shell, as well as a significant portion of engineering modification work at various land-based Oil & Gas processing terminals. The existing Shell maintenance contract at that time was unique; due to its magnitude, size, and importance, it involved a consortium of three major Oil & Gas contracting companies. This consortium comprised Sir Ian's Wood Group, Amec, and Halliburton (later becoming PSN – Production Services Network), collaborating in a joint venture company named Sigma 3. This three-company arrangement had proven successful for several years, ensuring each major contractor received a share of the financial rewards, and Shell believed it effectively distributed their risk. In February 2010, Shell distributed tender documents to each member company of the Sigma 3 operating group. In a move that took all by surprise, they announced that they would not proceed with the current joint venture and Instead would award the entire contract to a single successful contractor, leaving the two unsuccessful contractors each grappling with the loss of £250m in revenue each year. Wood Group had a quiet confidence and the board felt they were positioned more favourably than other bidders to win the overall contract. Sir Ian believed his employees possessed an unparalleled familiarity and knowledge of Shell's Oil & Gas platforms, surpassing that of any other company in the industry. Additionally, his excellent rapport with the decision-making senior management team at Shell was considered a crucial factor that could potentially make the difference between winning or losing the contract. The unexpected shift in contracting direction turned the three business partners of the Sigma 3 consortium into competitors, marking an unprecedented seismic shift in policy for Shell.

The CEOs of Wood Group, Amec, and PSN mobilised their teams to compile their bids. All companies were aware of the current rates charged to Shell under the existing arrangement, indicating the differentiator might not solely be financial. Sir Ian and his team exuded confidence, backed by a track record that was more extensive and illustrious than their competitors. Neil Bruce, CEO at Amec, shared a similar quiet confidence.

EXTRACTED FROM THE BIOGRAPHY - SIR IAN WOOD ABERDEENS BILLIONAIRE

WHAT DO YOU GET THE ABERDONIAN MAN IN YOUR LIFE THIS CHRISTMAS?

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Billionaire industrialist Sir Ian Wood stands as the wealthiest homegrown founder of a company in Scotland. When he stepped down from the helm in 2013, his creation—Wood Group plc—had grown into a global powerhouse valued at $12 billion, operating in more than 60 countries, employing 60,000 people, and elevating his personal fortune to over £2 billion.

A figure both formidable and fiercely debated, Sir Ian Wood’s life unfolds as an extraordinary saga—one marked by relentless effort, unwavering determination, profound personal sacrifice, moments of tragedy, brushes with disaster, and the darker currents of betrayal, greed, immense wealth, and influence.

Beginning with his family’s modest fishing-boat repair business in 1967, he boldly steered the company into the emerging world of oil and gas just as the industry reached Britain’s shores in the 1970s. From there, he built a sprawling empire that touched shipping, energy, fishing, technology, travel, electronics, power generation, offshore drilling, and property development. His leadership oversaw the most dramatic industrial transformation Aberdeen had ever seen.

Now, for the first time, the story long hidden behind closed doors is revealed. This is an explosive, deeply revealing journey into the sometimes shadowy, often ruthless, yet undeniably electrifying world of the Aberdeen oil and gas sector—its power brokers, its high-stakes decisions, and the man whose influence shaped an era.

Sir Ian’s real-life ascent makes HBO’s Succession seem like little more than a gentle bedtime tale.

His achievements stand shoulder-to-shoulder with the greatest entrepreneurs in any industry, at any point in history.

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