Paladio secures second Woodside contract

Paladio Group Ltd subsidiary, Decmil Australia Pty Ltd, has secured its second Woodside contract, worth $115 million, for civil works at the Pluto liquefied natural gas project.

Last month, Decmil secured a separate $80 million civil works contract at Pluto.

Paladio today said up to $40 million of the $115 million contract would be included in the 2009 financial year report.

Depending on various project timings the order book for fiscal 2010 is now estimated at just over $110 million.

Production at Pluto is expected to start in late 2010.

The announcement is pasted below:

Paladio Group Limited's (ASX:PDO) wholly owned subsidiary Decmil Australia Pty Ltd has been awarded a $115 million contract for civil works at the Pluto LNG Project by Woodside. Up to $40 million of the contract could relate to 2008/09 financial year.

Expected to produce first gas in late 2010, the $12 billion Pluto LNG Project is set to become Australia's second biggest resources project.
This is the second Woodside contract secured by Decmil recently. Paladio announced a separate $80 million civil works contract last month.

Paladio Chief Executive Officer, Mr Victor Kuss, said that it was extremely pleasing to report this second award.

"This is evidence of the company's strengthening reputation as a contractor with experience and expertise to undertake this size of projects."

The award of this contract continues the building of strong and sustainable future for the Paladio Group by extending the order platform well into the next financial year.

Depending on various project timings the order book for 2009/10 is now estimated at just over $110 million.

Decmil has been commissioned to supply and install concrete foundations and pedestals, as well as in-ground electrical and hydraulic services, for the storage and loading facility of the Pluto LNG Project on the Burrup Peninsula, near Karratha in Western Australia. Work will commence in November 2008.

Decmil has developed a strong infrastructure base to support projects of this nature, investing significantly in plant and equipment, systems and people to assist clients in delivering projects of this size and larger contract work in the future.

This contract will lift Paladio's current order book to approximately $310 million and comes after award of other significant contracts from client such as BHP Billiton, Rio Tinto and Fortescue Metals Group.