29/06/2009 - 07:05

Gorgon works contracts hit $1.3bn

29/06/2009 - 07:05

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The value of works and logistics contracts awarded by the Chevron-led Gorgon gas project in the past two months has reached nearly $1.3 billion, with the latest beneficiary being Toll Group.

Gorgon works contracts hit $1.3bn

The value of works and logistics contracts awarded by the Chevron-led Gorgon gas project in the past two months has reached nearly $1.3 billion, with the latest beneficiary being Toll Group.

Toll announced today it has landed a $180 million deal to manage the Barrow Island supply base and logistics services contract for the gas project.

It follows recent three-year logistics deals with a Skilled Group joint venture worth $350 million and Swiss company Agility worth $250 million.

Another big winner was the Decmil, Thiess and Kentz joint venture, which has won a $500 million contract to build the Gorgon project construction village for 3,300 workers.

Earlier this year, the state government approved a $35 million investment in a service and supply base at the Australian Marine Complex at Henderson, primarily to support the Gorgon project.

And in December last year, Mermaid Marine secured a deal worth up to $100 million to lease part of its Dampier supply base to the Gorgon project.

These contracts are on top of the Grogon joint venture's investment in drilling programs, environmental assessment and engineering studies over the past decade, which industry insiders estimate would be worth at least $2 billion.

Toll said in a statement today that its WA-based Toll Energy division would execute the three-year contract for the $50 billion Gorgon project.

Toll also said its resources business continued to be a strong performer, and it planned to examine further investments and organic growth in the resources sector both in Australia and overseas.

It said its work would begin on Barrow Island once all necessary government approvals for the Gorgon project are received and following the joint venture partners' final decision to proceed, which is expected later this year.

ExxonMobil and Shell both have 25 per cent stakes in the project, which will draw gas from Australia's largest-known gas resource, the 40 trillion cubic foot Greater Gorgon fields.

Most of the gas will be exported as liquefied natural gas, while a small portion is expected to be sold into the state's domestic gas market.

Asian customers are lined up for most of Gorgon's LNG.

First production is slated for 2015.

Chevron has operated on the island - Australia's largest onshore oilfield - for the past 40 or so years.

Gorgon is Australia's biggest energy project and includes an ambitious geosequestration component.

Resources sector consulting group Wood Mackenzie said in a report last month that geosequestration appeared to be "a workable long-term, albeit expensive, solution" to managing Gorgon's carbon dioxide emissions.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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