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CIMIC Group’s UGL secures $302m oil and gas maintenance contracts

first_imgUnder one of the contracts, CIMIC Group subsidiary will offer structural, mechanical, piping, electrical and instrumentation integrated services extensions to existing clients UGL wins contract extensions for Gorgon, Wheatstone and other projects in Australia. (Credit: Pixabay/gloriaurban4) CIMIC Group company UGL has been awarded contracts worth approximately AUD450m ($302.8m) to provide maintenance, turnarounds and project services for projects in the oil and gas sector.Under a contract, UGL will be responsible for extension of maintenance and turnaround services at Chevron-operated facilities as well as the extension of integrated services for existing clients in oil and gas sector in Western Australia and Victoria.UGL to provide services for Chevron-operated Gorgon and Wheatstone facilitiesThe scope of contract includes delivery of mechanical, electrical, instrumentation and access services for maintenance, plant turnaround and brownfield execution services at the Chevron-operated Gorgon and Wheatstone facilities in Western Australia.Said to be one of the world’s largest natural gas projects, the Gorgon project has a total daily production averaging 2.6 billion cubic feet of natural gas and 18,000 barrels of condensate in 2018.Australia’s first natural gas hub, the $34bn Wheatstone project comprises an onshore facility located at the Ashburton North Strategic Industrial Area, west of Onslow in Western Australia’s Pilbara region.At full capacity, the Wheatstone project is expected to produce 8.9 million metric tons per annum (MTPA) of LNG over an estimated 30 years of operation. The project comprises two LNG trains and a domestic gas plant.Chevron subsidiary owns 64.14% stake and is the operator of the LNG project. Other partners in the project include Kuwait Foreign Petroleum Exploration (13.4%), Woodside Petroleum (13%), Kyushu Electric Power (1.46%) and PE Wheatstone, part owned by JERA (8%).CIMIC said that the contract will support on-going employment for the workforce of up to 1,000 people as well as provide new upskilling and apprenticeship opportunities.Additionally, UGL will offer structural, mechanical, piping, electrical and instrumentation integrated services extensions to its existing clients.CIMIC Group CEO Juan Santamaria said: “These contracts exemplify the strength of UGL’s solid client relationships and its position as a market leader in the delivery of maintenance and mechanical, electrical and instrumentation services to the oil and gas industry.”last_img read more