Clough’s $170m deal in NZ

Clough Ltd has been awarded a $170 million contract from OMV New Zealand Ltd, operating partner of the Maari oil field, off the NZ coast.

Clough will perform all engineering, procurement, construction and installation activities for a drilling platform located within the field.

Clough managing director David Singleton said the contracting strategy agreed for the project would deliver benefits to all stakeholders involved.

Clough will use a design for the platform unique in the platform engineering industry. Called DrillAce, it was successfully applied last year, Mr Singleton said.

“Clough is further developing an offshore platform concept that is uniquely different from conventional techniques, and that is particularly well suited to remote locations,” he said.

“The DrillAces is proving to be cost effective and offers a lower-risk solution to clients who require rapid installation without the need for large offshore construction vessels.”

The Maari field is about 80 kilometres off the south Taranaki coast of New Zealand on the country’s north island.

Clough’s design was selected after a six-month client-funded design competition.

OMV New Zealand, a subsidiary of OMV, Austria’s largest listed industrial company, announced last month that the joint venture responsible for the project had approved the development, estimated to produce 35,000 barrels of oil a day from early 2008.

OMV owns 69 per cent of the joint venture with New Zealand explorer Todd Petroleum Mining Company Ltd holding a 16 per cent stake, while Sydney-based Horizon Oil owns a 10 per cent interest and Cue Taranaki Pty Ltd has a 5 per cent stake in the field.

Total development costs are put at around $360 million.

Negotiation of the final agreement with OMV is expected to be completed within one month from receiving the letter of intent.

In November, Clough’s offshore oil and gas division won a $45 million Woodside Energy Ltd contract with its joint venture partner Aker Kvaerner as part of the Angel gas field off Karratha.