The Wood Group has announced its acquisition of Canadian company Sunstone Projects.

The deal is said to be worth £7.8m.

In a statement, the Aberdeen-based oil services firm said Sunstone, which is based in Alberta, Canada, will be rebranded as Wood Group Mustang.

Sunstone currently offers engineering, procurement and construction management services to the Canadian oil and gas industry. It employs 70 people, and in 2013, generated sales of around $21m.

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Steve Knowles, President of Wood Group Mustang, said: "The Canadian pipeline system is expected to expand to ensure access to markets for oil & gas produced in Western Canada.

"The acquisition of Sunstone will strengthen our ability to provide our clients with services in this area.

"Sunstone's capability and geographic presence are complementary to Wood Group Mustang's existing pipeline business. Sunstone has an excellent reputation for pipeline project execution and will be an important part of our Canadian growth strategy."

Barry Bauhuis, President of Sunstone, added: "We are extremely excited to be joining Wood Group. As a part of a larger integrated engineering group we will continue to provide the same great service to existing clients while being able to pursue larger and more complex pipeline opportunities."

(JP)