GR wins $50m LNG contract

GR Engineering Services’ oil and gas services business has won a second major contract in as many days, with Origin Energy signing the subsidiary on for a $50 million job.

GR Engineering’s wholly-owned Upstream Production Solutions will provide wellsite, gas production, water treatment facility maintenance and major works to Australia Pacific LNG’s operations in the Surat Basin.

Origin is the upstream operator of APLNG.

The scope of work under the contract, which has an initial two-year term with a one-year extension, involves maintenance and associated services for at least 1,500 wells, seven gas processing facilities, nine water gathering systems, two water treatment facilities and one pre-treatment facility.

GR Engineering expects the contract to generate $50 million in revenue if the additional year option is exercised.

“We commend our Queensland team’s strong track record of performance since having commenced maintenance activities with APLNG in August 2014, which has led to the award of this additional contract,” Upstream PS managing director Joe Corvetti said.

“Upstream PS is proud to be playing a role in this transformational project for Origin and APLNG.”

It follows news yesterday that Upstream PS had won a $90 million contract to operate and maintain a floating production storage and offloading facility in the Timor Sea for Northern Oil & Gas Australia.

GR Engineering shares were 3.2 per cent higher to 95.5 cents each at 11:20am.