21/03/2016 - 11:50

AWE awards $6m of local contracts

21/03/2016 - 11:50

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Four Mid West companies have won nearly $6 million in contracts for work on AWE's Waitsia project, where first gas is expected in the third quarter of this year.

AWE awards $6m of local contracts
AWE drilling at the Waitsia field.

Four Mid West companies have won nearly $6 million in contracts for work on AWE's Waitsia project, where first gas is expected in the third quarter of this year.

That means about half of the company’s investment in the project this year will flow through the local contractors.

Structural, mechanical and piping work on the Xyris production plant, which is being refurbished, will be undertaken by RCR Mining’s Geraldton office.

Pipeline and facilities construction will be undertaken by Piped Energy, while bulk earthworks and concrete construction is contracted to Central West Concrete.

Both are based in Dongara.

GCo electrical will conduct electrical and instrumentation work.

Two wells were approved for the first stage of the development in January, with a target of 10 terajoules per day of production signed in an offtake deal with Alinta Energy.

But the field could produce up to 10 per cent of the state’s domgas needs, AWE said, or about 10 times the planned first stage amount.

Outgoing AWE managing director Bruce Clement said the contracts would support regional communities.

“Part of our commitment to being a good neighbour is to support local businesses,’’ he said.

“Awarding large value contracts locally is a reflection of the technical capability, competitiveness and cost efficiency of Mid West service providers.

"AWE sets high standards for its operations and the oil and gas industry in Western Australia demands the very best in quality, safety and efficiency.”

On Friday, the Sydney-based business announced David Biggs would commence as managing director of the company in May.

Mr Clement’s employment would come to an end in September unless an earlier date was agreed, the company said.

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