Clough JV wins Exxon LNG contract

04/06/2009 - 08:37

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A joint venture led by engineering and construction company Clough has been awarded a contract for early works on a major liquefied natural gas (LNG) project being developed by Exxon Mobil in Papua New Guinea.

A joint venture led by engineering and construction company Clough has been awarded a contract for early works on a major liquefied natural gas (LNG) project being developed by Exxon Mobil in Papua New Guinea.

The Clough Curtain joint venture, 65 per cent owned by Clough Niugini, will begin planning immediately, a statement from Clough said on Thursday.

"Planning work will start immediately with work orders to be executed by the JV as budget and scope are agreed," Clough said in a statement, which did not place a value on the contract.

The overall project is subject to a final investment decision.

Clough said multiple work fronts would operate from the river port at Kopi to Hides in the Southern Highlands with an anticipated workforce of up to 900.

The work includes the construction of roads, bridges, wharf, laydown and camp areas and other critical infrastructure.

"We regard the LNG project as being at the core of our growth strategy, and are delighted to be awarded the first phase of this development," Clough chief executive John Smith said.

The Clough Curtain JV is a 65/35 Joint Venture between Clough Niugini, a wholly owned subsidiary of Clough Ltd, and Curtain Bros Papua New Guinea Limited.

The Exxon-operated PNG LNG joint venture proposes to build a two-train 6.3 million tonnes per annum liquefaction plant near Port Moresby with gas sourced from various fields in the PNG Highlands.

The PNG LNG project ownership currently consists of ExxonMobil (Esso Highlands as Operator) at 41.5 per cent, Oil Search 34.0 per cent, Santos 17.7 per cent, Nippon Oil 5.4 per cent, Minerals Resource Development Company 1.2 per cent and Eda Oil Limited 0.2 per cent.

 

 

The announcement is below:

 

 

Engineering and construction company Clough Limited (ASX:CLO) today announced that the Clough Curtain JV has been awarded a contract by Esso Highlands Ltd (a subsidiary of Exxon Mobil Corporation) for the early works associated with the PNG LNG project. Planning work will start immediately with work orders to be executed by the JV as budget and scope are agreed. The overall project is subject to a final investment decision.

For this upstream project, multiple work fronts will operate from the river port at Kopi to Hides in the SouthernHighlands with an anticipated workforce of up to 900. The scope includes the construction of roads, bridges, wharf, laydown and camp areas and other critical infrastructure.

Clough Curtain JV is a 65/35 Joint Venture between Clough Niugini, a wholly owned subsidiary of Clough Ltd, and Curtain Bros Papua New Guinea Limited. Both companies have extensive experience in delivering infrastructure projects in PNG.

John Smith, CEO of Clough Limited said he was extremely pleased to have been selected by Esso Highlands and their JV partners to execute this work together with JV Partner, Curtain Bros.

"Clough has a successful history of working in PNG over the past 25 years. We regard the LNG project as being at the core of our growth strategy, and are delighted to be awarded the first phase of this development" he said.

The Esso- operated PNG LNG joint venture proposes to build a two-train 6.3 million tonnes per annum liquefaction plant near Port Moresby with gas sourced from various fields in the PNG Highlands.

The PNG LNG project ownership currently consists of ExxonMobil (Esso Highlands as Operator) at 41.5%, Oil Search 34.0%, Santos 17.7%, Nippon Oil 5.4%, Minerals Resource Development Company 1.2% and Eda Oil Limited 0.2%. (Participation will change when the PNG State nominees join as equity participants at a later date).

 

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