The Worley Ltd (ASX: WOR) share price is backtracking today, taking a breather from its recent 52-week high.
This comes after the engineering group announced it has been awarded a contract from energy giant, Santos Ltd (ASX: STO).
At the time of writing, Worley shares are swapping hands at $13.47, down 2.18%.
Worley expands partnership with Santos
Investors are selling off Worley shares despite the company announcing positive news to the ASX.
In its release, Worley advised it has won a professional services contract to support Santos' Bayu-Undan carbon capture and storage (CCS) project.
Under the deal, Worley will provide front-end engineering and design (FEED) services for the Bayu-Undan offshore facilities and pipeline.
The scope of work includes re-purposing the Bayu-Undan facility along with other offshore sections from hydrocarbons to carbon dioxide service.
Furthermore, Worley will also provide FEED services for the life extension of the facility and pipeline to ensure safe operation.
The Bayu-Undan CCS project is expected to store up to 10 million tonnes of carbon dioxide per annum. To put that into perspective, that's about 1.5% of Australia's total carbon emissions for the year.
The CCS project could be one of the largest in the world and help Australia transition to a low-carbon future.
Worley stated it will use its Perth team to execute the work, whilst receiving support from its global branches.
Worley CEO, Chris Ashton commented:
We are excited to strengthen our relationship with Santos and support this important carbon capture and storage project. This project is one of the ways we are helping our customers to decarbonize and re-purpose existing assets as we deliver a more sustainable world.
Worley share price recap
Over the past 12 months, the Worley share price has gained close to 20% following a rally in energy prices.
The company's shares reached a 52-week high of $15.69 in early June before treading lower in the weeks after.
Worley presides a market capitalisation of roughly $7.21 billion with 523.7 million shares outstanding.
