A potential of A$20-40 million per annum of ongoing EPC services will be provided by this contract. In the past, these services were provided by a range of providers and under this arrangement have been consolidated into a single contract.
The contract was awarded to O&G Solutions, a joint venture between Kvaerner E&C Australia and United KG Pty Ltd. O&G Solutions was established specifically to provide comprehensive and integrated engineering, maintenance and construction services to the oil and gas industry.
Mr Les Guthrie, Managing Director, Kvaerner E&C Australia, said "Winning this contract is a major achievement for us as it reinforces our reputation and long-standing relationship with Santos who are one of our key clients. The individual strengths of the joint venture partners combine to make O&G Solutions one of Australia's first true EPC entities, offering the broadest range of capabilities within an integrated service provider."
While the contract is awarded initially for three years, it provides for extensions up to eight years via an annual renewal of the three-year rolling term. "It is our intention to remain the incumbent alliance partner for the full term and our team will therefore be working hard to ensure that our performance meets all our client's expectations," said Mr Guthrie.
This contract follows Kvaerner E&C Australia's recent award for the Santos Asset Control Enhancement (ACE) Project, involving an upgrade of the control facilities at the large Moomba Gas Processing and Natural Gas Liquids Facility in the remote far north of South Australia. The Moomba plant, in the Cooper Basin, supplies gas for New South Wales, Queensland, South Australia and the Australian Capital Territory; ethane as petrochemical feedstock; plus LPG, butane and condensate for both export and local consumption.
ENDS
For further information:
Steve Sandler, Kvaerner E&C Australia: Tel: +61 3 9272 3444 or Email: steve.sandler@akerkvaerner.com
Geir Arne Drangeid, Group Communications, Aker Kvaerner ASA: Tel: +47 91 31 04 58 or Email: geir.arne.drangeid@akerkvaerner.com
www.akerkvaerner.com
NOTES TO EDITORS
Aker Kvaerner is a leading global provider of engineering and construction services, technology products and integrated solutions. Group activities span a number of industries, including Oil and Gas upstream and downstream, Process, Pharmaceuticals, Metals, Power, Chemical Pulping, Environmental and Shipbuilding. Aker Kvaerner is a multi-local group of businesses with nearly US$6 billion of annual revenues and around 34,000 employees in more than 30 countries.
The E&C business area of Aker Kvaerner specialises in the provision of process technology, design, engineering, project management, procurement and construction to a number of industrial sectors on a world-wide basis: petroleum and petrochemicals, chemicals and polymers, pharmaceuticals and biotechnology, power, water, nuclear, minerals, mining and metals. With an annual turnover of US$1.6 billion, the E&C business employs more than 8,000 people operating worldwide. It offers the complete range of services that are necessary to realise global projects from conception to start-up. These services include a portfolio of advanced process technologies, a full range of engineering studies (including bankable feasibility and environmental studies), total project management, engineering and design, procurement, construction, commissioning and maintenance services.
Aker Kvaerner E&C Australia is a leading process engineering entity, providing industrial clients throughout the process, chemicals, power, non-ferrous metals, iron ore and steel industries with design and project management services and innovative technology solutions.
United Group is a diversified services company specialising in industrial maintenance, facilities management, commercial property management services, manufacturing, fabrication and construction. United Group has 4,600 employees, facilities in 25 locations and 60 site operations throughout Australia, New Zealand, UK and Southeast Asia. It partners with customers to deliver solutions in the following sectors: power supply and distribution; water and waste management processes; mining and mineral processing; oil, gas and LNG; telecommunications; commercial buildings; property management; heavy haulage railway and commuter transport equipment.