Apache Energy has awarded a $US170 million ($A195 million) contract to a Norwegian and Malaysian joint venture for works at its Devil Creek gas project offshore Western Australia.
Apache Energy has awarded a $US170 million ($A195 million) contract to a Norwegian and Malaysian joint venture for works at its Devil Creek gas project offshore Western Australia.
Norway's Acergy and Kuala Lumpur-based SapuraCrest Petroleum were awarded the contract, which will be carried out by the SapuraAcergy JV.
It is understood that three groups were bidding for the lucrative contract, one of them Perth-based oil and gas contracting specialist Clough.
Under the contract, SapuraAcergy will install 91 kilometres of pipeline together with a wellhead platform and processing module.
Acergy said in a statement that engineering and project preparations will start immediately in both KL and Perth with offshore installation to start in late 2010 using the 'Sapura 3000', a specialist heavy lift and pipelay vessel.
"This award represents an important development for our Joint Venture and signifies Sapura 3000's entry into the promising Australian market," Acergy chief executive Jean Cahuzac said.
A Clough spokesperson said the company has not been told why the SapuraAcergy JV won.
"We tendered the work at the price level and with the risk profile that we were prepared to accept giving Apache the benefit of the previous work that we had done," they said in an emailed statement to WA Business News.
"We have no detail as yet as to why we have lost the project but since we were qualified technically we can only conclude that the winning bid was assessed as a lower price to Apache.
"The project was planned to be executed in Q4 calendar year 2010 with an offshore schedule of about 80 days and we are bidding other work for the same period."
The announcement is below:
Acergy S.A. (NASDAQ-GS: ACGY; Oslo Stock Exchange: ACY) announced the award of a contract valued at approximately $170 million to SapuraAcergy Sdn Bhd by Apache Energy Limited for the Devil Creek Development Project (DCDP) offshore Australia.
The DCDP has been initiated to recover and process the gas reserves from the Reindeer Gas Field located 80km northwest of the port of Dampier in 60m water depth.
SapuraAcergy's scope under the contract involves the transportation and installation of approximately 91km of 16" rigid pipeline including a shallow water beach approach, subsea tie-in and stabilisation works together with a wellhead platform of a 1,700T four leg jacket and a 450T topside processing module.
Engineering and project preparations will commence immediately in Kuala Lumpur and Perth. Offshore installation is scheduled to commence in late 2010 using the Sapura 3000, SapuraAcergy's state of the art dynamic positioning heavy lift and pipelay vessel and project specific third party support vessels.
This project will be accounted for in the share of results of associates and joint ventures line in the Acergy accounts. For this reason, the value of this award will not appear in Acergy's reported backlog and revenue.
Jean Cahuzac, Chief Executive Officer, Acergy said "This award represents an important development for our Joint Venture and signifies Sapura 3000's entry into the promising Australian market. It demonstrates our capability and versatility by offering competitive solutions for both shallow and deepwater projects. Building upon recent successes we are confident that our Joint Venture and the highly specialised Sapura 3000 will perform strongly for our Client."