Engineering and construction company Decmil Group says it is in final stage negotiations over a $70 million contract for the Gorgon gas project while Ausgroup has been awarded $30 million worth of contracts for work on the Pluto operation.
Engineering and construction company Decmil Group says it is in final stage negotiations over a $70 million contract for the Gorgon gas project while Ausgroup has been awarded $30 million worth of contracts for work on the Pluto operation.
The announcements are below:
DECMIL
Highlights
- Decmil Australia finalising sub-contract with Thiess for the design and construction of temporary construction facilities for Gorgon Project.
- Contract award will lift Decmil Group's order book to A$374M (about A$156M in 2009/10 and A$218 million in 2010/11
- Work planned to start in early 2010
- In line with Decmil Group's expansion strategy for next three years
Perth-based engineering and construction company Decmil Group Limited (ASX: DCG) today announced that its wholly-owned subsidiary, Decmil Australia Pty Ltd (Decmil) is in the final stages of contract negotiations with Thiess Pty Ltd (Thiess) for the design and construction of temporary construction facilities which form part of Thiess' Site Preparation & Temporary Construction Facilities contract for the Gorgon Project. The sub-contract is expected to be approximately $70M.
The sub-contract's scope of work includes: in-ground services, the installation of temporary facilities, the supply/installation of warehouses and workshops and related engineering and design. Work is expected to commence in early 2010 with practical completion by September 2011.
When the contract is finalised DGL's order book will increase to A$374 million, of which approximately A$156 million is expected to contribute to the Group's 2009/10 financial year revenues and A$218 million in the 2010/11.
Decmil Group Limited CEO Scott Criddle said "In the past 12-18 months, Decmil Australia has been diligent in its approach to securing significant contracts in the Western Australian resources and oil and gas sectors."
"These negotiations are a further reflection of the strong standing and respected relationships Decmil has built with major companies in the oil and gas sector, including Chevron and the Kellogg Joint Venture."
The Group has an expansion strategy in place for the next 1 - 3 years and in recent years, has focussed on assembling a strong team of the best people to ensure it has the resources to service contracts to the value of A$500 million.
"We intend to increase our capacity across the Group to ensure we are well positioned to continue executing larger projects with our key clients." Mr Criddle said.
AUSGROUP
AusGroup Limited ('AGL' or 'AusGroup' or the 'Group') is pleased to announce the award of
two contracts.
The contracts were awarded to AusGroup's Australian subsidiary, AGC Industries Pty Ltd
('AGC') by Woodside as part of the Pluto LNG Project.
AGC was awarded a contract associated with construction of an Effluent Treatment Plant as
part of the Pluto LNG Project. The AUD$20 million contract includes the installation of
equipment and pre-assembled package units, piping and structural steel work. Completion is
scheduled for June 2010.
The Pluto onshore plant is located on the Burrup Peninsula in Western Australia, north of
Dampier and next to the existing North West Shelf Karratha Gas Plant.
AGC was also previously awarded an additional contract of approximately AUD$10 million to
fabricate, assemble, pre-commission and load out for the Temporary Living Quarters (TLQ)
module required for the offshore commissioning activities for the Pluto Riser Platform. The TLQ
contract will provide extra accommodation facilities for 48 persons on the platform with mess,
galley, recreation and office facilities. The module is estimated to weigh approximately 650
tonnes with oval dimensions of 14 metres wide x 26 metres long x 18 metres high.
Fabrication will be undertaken at AGC's Kwinana facilities. Assembly and load out of the TLQ will be completed at the Australian Marine Complex in Henderson, Western Australia in
December 2009.
The Pluto Riser Platform is located 180km north-west of Karratha in Western Australia.
AusGroup Managing Director John Sheridan said that these additional contracts were pleasing
as they continued to build on our strong project delivery history we have with Woodside.
"We are pleased to secure these additional contracts associated with Woodside's Pluto LNG
Project. With these contracts we have now secured a total of five contracts covering fabrication
services, construction services and scaffolding services which demonstrates the diversity of
our business in relation to Australian LNG project development." Mr Sheridan added.
The Group's order book now stands at AUD$347 million, which includes the additional Pluto
contract awards.
