Engineering and construction contractor Clough says it is breaking new ground in a joint venture with South Korea's Coens Energy, to provide commissioning services for onshore and offshore oil and gas facilities at fabrication yards, predominantly in South Korea and China.
The joint venture, which will be known as Clough Coens Commissioning and Completions, will perform initial start-up works on drilling rigs and processing equipment in the construction yard, before carrying out final hook-up works at project locations.
Clough will provide project management and commission systems expertise, while Coens' local workforce, infrastructure and Asian market-place knowledge will round out the JV.
The joint venture is expected to be 55 per cent held by Clough, with Coens holding the remaining 45 per cent interest.
Clough Coens will have access to more than 6,000 technical and trades personnel, while Coens has strong relationships with key Asian fabrication yards, including Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering, and Samsung Heavy Industries.
Clough chief executive Kevin Gallagher said the joint venture created an international commissioning service model that could be exported globally, but said the majority of works opportunities were at yards in South Korea and China.
Mr Gallagher said Clough had become a market leader in Australia for hook-up and commissioning services, following the acquisition of commissioning contractor e20 and a string of major contracts.
“The traditional commissioning model sees our major clients use engineering contractors to commission the same project they have constructed, often leaving clients managing a significant conflict of interest with their primary contractors,” Mr Gallagher said in a statement.
“Clough Coens will offer an attractive alternative to this model through the provision of an independent and specialised commissioning service performed at the fabrication site and subsequently at the project site.
“Having spent many years in an operating capacity I believe this will benefit the client by allowing the fabrication contractor to focus on mechanical completion milestones, while having a dedicated team focused on planning and executing hook-up and commissioning activities.”
Coens chief executive David Park said the joint venture would provide clients with a specialised and comprehensive service offering.
The joint venture remains subject to approval by South Korea’s Fair Trade Commission.
At 10:30AM, WST, Clough shares were down 1.3 per cent, at $1.17.