10/07/2009 - 09:05

WorleyParsons to work on Oakajee study

10/07/2009 - 09:05

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The company in charge of the billion-dollar Oakajee deepwater port and rail network has appointed WorleyParsons to conduct the budget and engineering components of the $100 million bankable feasibility study.

The company in charge of the billion-dollar Oakajee deepwater port and rail network has appointed WorleyParsons to conduct the budget and engineering components of the $100 million bankable feasibility study.

The value of the contract to Australia's largest engineering company was not revealed in a joint statement by the project developer, Oakajee Port and Rail (OPR), and iron ore miner Murchison Metals, which owns 50 per cent of OPR.

Japanese industrial giant Mitsubishi owns the other 50 per cent.

OPR chief executive Christopher Eves said WorleyParsons' appointment followed a detailed international and comprehensive tender process.

"The company's appointment will support the timely completion of the BFS (bankable feasibility study) and maintain our momentum in delivering this nationally significant project," Mr Eves said.

Murchison executive chairman Paul Kopejtka said WorleyParsons would play a critical role in completing the BFS, and in the design and engineering of both the rail and port components.

The aim of the Oakajee development is to provide an alternative route to export for iron ore miners in the midwest region to the often-congested, nearby Geraldton port.

Feasibility studies are on track for completion in 2010, Murchison said.

Shares in WorleyParsons were up 10 cents at $21.05 at 1153 AEST.

 

The announcement is below:

 

Oakajee Port and Rail (OPR) is pleased to announce the appointment of WorleyParsons to fulfil the role of Project Management Study Contractor (PMSC) for the new Oakajee bulk commodity supply chain in Western Australia's mid-west.

WorleyParsons will conduct the budget and engineering study for OPR's Bankable Feasibility Study (BFS) including management of design and engineering, and capital and operating estimating for the deepwater port and associated heavy haulage rail network.

OPR Chief Executive Christopher Eves said WorleyParsons' appointment follows a detailed international and comprehensive tender process.

"The PMSC role is a critical one in framing the significant engineering, construction and logistics task ahead of us," Mr Eves said.

"WorleyParsons has extensive experience in project management services for integrated infrastructure projects, both locally and internationally.

"This has included major greenfields projects such as the Pilbara Iron Ore and Infrastructure project and other major works such as capacity upgrades to the Hunter Valley coal supply chain.

"The company's appointment will support the timely completion of the BFS and maintain our momentum in delivering this nationally significant project."

The OPR team will continue to perform core functions including project financing, customer and stakeholder liaison, business analysis, approvals, land tenure, Indigenous and community affairs.

Likewise, WorleyParsons will work with a number of engineering consultants who have been engaged by OPR including JFA Consultants, AECOM and Calibre Engenium.

A number of key OPR staff will co-locate with the joint OPR - WorleyParsons project management team, to ensure optimal leverage of the extensive planning and design work previously undertaken by OPR and coordination with OPR's executive management team. OPR will continue to maintain a strong owner's team which will include Jim Netterfield and Alwyn Vorster, both of whom will commence with OPR in the coming weeks.

Mr Netterfield, OPR Operations Director and Mr Vorster, OPR Director - Supply Chain, were recruited to oversee the efficient operation of the supply chain and the engagement of regional miners, respectively.

"With the appointment of the PMSC, as well as Jim and Alwyn, the Oakajee deepwater port and integrated rail network project is stepping up another level - and I am looking forward to progressing our studies with the strengthened group over the coming months," Mr Eves said.

"This appointment represents a further major milestone and commitment to the early and successful implementation of the project."

 

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