WOODSIDE has pledged to maximise local content on its next big project, the $1.5 billion Enfield project, despite choosing to send a key component of the work overseas.
Woodside has signed a heads of agreement with South Korean company Samsung Heavy Industries for fabrication of the ‘topside’ modules, worth more than $100 million.
Local engineering companies including Thiess had been seeking a share of the topside contracts, but Woodside has decided the 8,000-tonne contract will be awarded as one package.
That effectively rules out local participation.
A Woodside spokesman said the maximum achievable level of local content on Enfield was 38 per cent, which he said was well above local content on earlier ‘FPSO’ projects, such as Laminaria.
However he offered no assurances that local industry would win this volume of work.
“That is the amount WA companies could tender for,” the spokesman said.
“They need to pre-qualify and bid for the work.”
The spokesman said the main engineering contractor, Flouor AMEC, would be based in Perth.
He added that Norwegian contractor FMC would be establishing a permanent Perth office and seeking to source local fabricators for the subsea structures.
Australian Manufacturing Workers Union State secretary Jock Ferguson has called for a forum of government, industry and union representatives to seek a greater commitment to local content on big projects.
© Business News 2018. You may share content using the tools provided but do not copy and redistribute.