Monadelphous JV lined up for $US250m contract

A joint venture between Monadelphous Group and Jacobs Engineering has struck an agreement to provide services to Oil Search’s operations in Papua New Guinea, in a deal worth up to $US250 million.

Perth-based Monadelphous said this morning the joint venture had received a letter of intent from Oil Search to enter into a five-year contract for the provision of engineering, procurement and construction services to the client’s oil and gas production facilities in PNG.

The contract value has been estimated to be worth $US50 million per year.

“The joint venture will provide a wide range of brownfield project services including engineering, procurement, civil, mechanical and electrical works on pipelines, utilities, facilities and supporting infrastructure,” Monadelphous said.

“Works are scheduled to commence in the second quarter of the 2017 calendar year.”

Monadelphous managing director Rob Velletri said the proposed contract built on the company’s decade-long relationship with Oil Search.

“The proposed contract represents a new chapter in our relationship with Oil Search, moving towards the provision of end-to-end brownfield project delivery in joint venture with Jacobs,” he said.

Monadelphous shares were 2.8 per cent higher to $11.83 each at 10:50am.