Clough wins $260m Apache contract

Engineering and construction company Clough Ltd has continued a run of big contract wins, being awarded a $260 million contract for Apache Energy's Devil Creek gas project in the Pilbara.

This follows success last month with Woodside Energy, which awarded a Clough joint venture a $200 million contract for its Pluto gas project, and Iluka Resources, which awarded Clough a $30 million contract for a mineral sands project.

Clough awarded $260 million WA gas contract

Engineering and construction company Clough Limited (ASX:CLO) today announced that it had been awarded the Apache Devil Creek Development Project , valued at approximately $260 million. The scope of work is for the Engineering, Procurement and Construction of the onshore facilities for the processing and transportation of gas reserves from the Reindeer gas field, which is located approximately 80 kilometres off the Port of Dampier, Western
Australia.

The self contained Devil Creek Gas Plant will comprise gas treatment/dehydration, condensate liquid stabilisation, storage and road loadout facilities, gas compression and metering. An onshore single 3 phase 16" raw sales gas pipeline will link to the shore crossing and the tie-in to the existing Dampier to Bunbury Natural Gas Pipeline is not
included in the scope.

Clough performed the Front End Engineering Design (FEED) for Apache Energy Limited, the operator of the Reindeer Field and the Devil Creek Development Project, for the offshore production facilities and the onshore gas plant.

John Smith, Clough's Chief Executive Officer said, "Apache and Clough have put considerable effort into agreeing the contract form to ensure alignment of objectives and an equitable balance of risk and reward."

"We are familiar with the Pilbara region and have worked successfully with Apache in the past. This is an important domestic gas resource for Western Australia and we will do everything in our power to deliver an excellent project for Apache, the State and Clough."

Construction of the 200 person accommodation camp will commence almost immediately while detailed engineering and materials sourcing is well underway. The project is expected to be complete early in 2010.