Global firms target WA gas

The influx of global oil and gas players to Perth for a major conference this month has provided a platform for some to announce plans to expand their operations in Western Australia.

International players on the growth path include Norway’s Kongsberg Oil & Gas Technologies, and Aberdeen-based Swire Oilfield Services.

Both businesses are part of larger industrial groups that have each been in business for about 200 years.

The Australian Oil & Gas Conference, which has more than 500 exhibitors from across 20 countries, has also been used as a platform for Shell to update the market on its Prelude floating liquefied natural gas project.

FLNG has attracted controversy because of the loss of construction jobs compared with land-based LNG developments, but is being targeted as one of the big growth opportunities for specialist contractors and service providers.

Another theme running through AOG this year is the importance of advanced technology applications.

Swire, for instance, has announced the launch of OverVu, an asset tracking technology it says has been applied to most other industries but never before to the oil and gas sector.

Swire’s general manager for track and trace solutions, Nick Coaton, said applying asset tracking technology to the oil and gas sector had been held back by the need to obtain hazardous area certification.

He anticipates the technology will foster significant productivity gains for companies in the sector.

Swire Oilfield Services UK-based chief operating officer Richard Sell said the product launch was part of the group’s strategy of diversifying its product offering into more sophisticated services.

To support its growth in this region, Swire is investing $15 million in new facilities in Karratha, where it has previously leased premises.

Mr Sell said it was also looking to invest more in Darwin, which would be a major operational base for Shell’s Prelude project and INPEX’s Ichthys project.

Norwegian technology and software group Kongsberg has signalled its growth aspirations with the opening of a new office in Perth, where it has 30 staff currently and space for double that number.

“It’s a big milestone for Kongsberg, we are now building a solid footprint in Perth,” Konsberg Group chief executive Walter Qvam said.

Kongsberg bulked up its presence in Perth last year with the acquisition of fellow Norwegian company Apply Nemo, which had 24 staff locally.

Kongsberg Oil & Gas Technologies chief executive Pål Helsing said the new office was built for growth and was “a very important signal of the commitment we have to the business here”.

Meanwhile, Shell Australia chairman Andrew Smith has continued to highlight the local benefits that will flow from the long-term operation of its Prelude project.

He told the conference Prelude would employ between 240 and 280 operators, and about 300 people during maintenance phases.

“We expect there will be a further 650 in largely onshore support and contractor roles,” Mr Smith said.

He said recruitment of technicians started last year, with specific training programs developed in partnership with Challenger Institute of Technology.

“Our first trainees started about two weeks ago, which was a very proud moment for both Shell and Challenger,” Mr Smith said.

Early this month, Shell awarded a contract for the design, construction and operation of three ‘infield’ support vessels to support its Prelude FLNG project.

The contract was awarded to KT Maritime Services Australia, a joint venture with KOTUG International and Teekay Shipping Australia, and is expected to create 80 jobs.

The vessels will operate out of Broome on rotation. 

“This is a very significant contract when it comes to the ongoing operation of Prelude FLNG,” Mr Smith said.

“This contract is an example of the long-term benefits of Prelude FLNG. During the operations and maintenance phase we expect to spend at least $200 million per year on local content.”