Engineering and construction group Marine & Civil has gone into administration after incurring losses on the Gorgon gas project on Barrow Island.
Engineering and construction group Marine & Civil has gone into administration after incurring losses on the Gorgon gas project on Barrow Island.
The directors of four companies in the group have appointed Chris Williamson and David Hurt of WA Insolvency Solutions as joint and several voluntary administrators.
"The appointment was made due to serious short term cash flow issues as a consequence of losses sustained on a project undertaken at Barrow Island," Mr Williamson said in a statement.
"The administrators are assessing the companies affairs with a view to continuing the trading operations whilst the directors (in conjunction with the administrators) negotiate with a number of parties to formulate an offer to creditors."
WA Business News understands the directors are aiming to recapitalise the group, which employs around 200 people and has approximately 350 suppliers and trade creditors.
Marine & Civil is believed to have undertaken two contracts on Barrow Island.
It was involved in the development of WAPET Landing, which was part of a larger $108 million site development contract awarded to Perth company Ertech Pty Ltd in June 2009.
Marine & Civil also established a joint venture with South Africa-based construction company Murray & Roberts, which has won a separate contract for a Wharf Loading Facility.
The latter work is part of an $800 million dredging and construction contract awarded to Boskalis Australia in October 2009.
The $43 billion Gorgon gas project is Australia's largest resource development.
Project operator Chevron has repeatedly insisted the project is proceeding to plan, despite recurring suggestions it is falling behind schedule because of logistical difficulties on Barrow Island.
Marine & Civil was established in 1992. Its projects have included the Cottesloe artificial surf reef, the Graham Farmer freeway bridge piling and the Narrows Bridge duplication, and more recently wharf facilities at Port Hedland and Koolan Island and rebuilding of the Busselton Jetty.
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