Decmil wins $150m QGC contract

Osborne Park-based Decmil Group has won a $150 million contract extension to provide upstream services in the Queensland coal seam gas space.

The three-year deal is with QGC, the Shell subsidiary that operates one of the three coal seam gas liquefaction plants near Gladstone in Queensland.

Decmil will undertake maintenance, logistics and construction work at a number of projects in Queensland’s Surat Basin.

The three-year contract will start in November, with a potential two-year extension.

Decmil managing director Scott Criddle said the business had a strong relationship with QGC.

“Decmil has an established capability and reputation in upstream CSG and we are expecting increased activity in the sector and our Queensland business unit over the next few years,” he said.

It is the second contract win announced this month by Decmil, after the $86 million Drysdale bypass road project was awarded to the company.

In August, Decmil raised $50 million in a placement at 80 cents per share, with Hartleys acting as lead manager.

Shares in Decmil were up 2.6 per cent to be 80.5 cents each at the time of writing.