AusGroup wins $25m Apache contract

Perth-based AusGroup has been awarded a contract potentially worth up to $25 million by Apache Energy for work at its Varanus Island facilities.

The contract was awarded to AusGroup subsidiary, AGC Industries, and will consist of general and campaign services, and minor capital works at the island, off the coast of Western Australia.

The new contract will commence in mid January 2010 for an initial term of three years with 2 one-year options. The estimated total contract value will be $5 million each year.

The work involves all mechanical disciplines, sheet-metal fabrication, insulation, scaffolding, rigging and electrical and instrumentation. AGC will also provide fabrication support from its fabrication facility in Kwinana.

"We are delighted to secure this work with Apache, and see this as a significant opportunity to continue our long term relationship with this important client," AusGroup managing director John Sheridan said.

The Apache contract win has boosted AusGroup's order book to $490 million.