A wholly-owned subsidiary of Nedlands-based engineering and construction services company Forge Group has been awarded a $12 million terminal tank refurbishment contract on Barrow Island as part of Chevron's $50 billion Gorgon LNG project.
Forge's subsidiary Cimeco has secured this $12 million contract in additon to a $10 million contract to design, supply and construct 16 storage tanks for the project which was announed mid-September.
Cimeco will start work on this new contract next month as work on the original $10 million contract has already started and is expected to be completed in March next year.
At 1350AEST Forge shares were up 11.5 cents, or 8.1 per cent, to $1.53.
Announcement below:
Gorgon Project - Award of Contract
Cimeco Pty Ltd is pleased to announce that it has entered into an agreement with Chevron Australia Pty Ltd ("Chevron") for the Refurbishment of a Terminal Tank on Barrow Island.
The contract value of the project is estimated to be approximately $12 million and will commence in November 2009.
Cimeco Pty Ltd is a wholly owned subsidiary of ASX listed Forge Group Ltd that provides a broad range of engineering and construction services to the Oil & Gas, Mining and Public Utilities sectors.
Cimeco's range of products and services covers storage tanks design & construction and/or modification, installation of structural, mechanical and piping systems, civil and concrete installations and design and construction of commercial buildings.
The Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (Operator),
ExxonMobil and Shell, to develop the Greater Gorgon gas fields, located between 130km and 200km off the north-west coast of Western Australia.
The Greater Gorgon gas fields contain resources of about 40 trillion cubic feet of gas, Australia's largest-known gas resource.
