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18/06/2009 - Decmil and JV awarded contract for A$500 million Gorgon Construction Village

Highlights

  • Decmil Australia, Thiess and Kentz Joint Venture awarded the contract for Gorgon Project Construction Village.
  • Decmil Australia’s share of the total project value is approximately A$170 million ($70 million in financial year 09/10 and the balance in 10/11).
  • Lifts Group’s forward order book to A$330 million.
  • Design work on construction village is planned to start in the second half of 2009.
  • The contract award emphasises the emerging strength of Decmil Australia in the engineering and construction sector.

Perth-based engineering and construction organisation Decmil Group Limited (formerly known as Paladio Group Ltd) (ASX: PDO)  today announced its wholly-owned subsidiary Decmil Australia Pty Ltd (Decmil) has been awarded the contract - along with Joint Venture  partners Thiess and Kentz – to design and construct an accommodation village for Chevron Australia Pty Ltd. The contract value is approximately $500 million.


Decmil, Thiess Pty Ltd and Kentz Pty Ltd will form a fully-integrated unincorporated Joint Venture, known as the TDK Joint Venture, to deliver the construction of a 3,300 person construction village on Barrow Island for the Chevron operated Gorgon Project.


The work is expected to commence on the island after receipt of all necessary government approvals and following a final investment decision on the Gorgon Project from the Gorgon Joint Venture participants, expected in the second half of 2009.

Decmil’s share of the total contract value is expected to be in the order of A$170 million, making it the company’s largest single contract.
Today’s announcement lifts Paladio’s forward order book from 1 July 2009 to A$330 million, of which A$230 million relates to the 2009/10 financial year. 


Decmil Group’s newly appointed Chief Operating Officer, Scott Criddle described the announcement as a ‘significant step’ in the company’s 30-year history.


Decmil has embarked on a well-planned program of growth in relation to its commitment to the oil and gas sector and has positioned itself to competently manage projects of this size and scale.


Following today’s announcement, the TDK Joint Venture will progress planning activities for the design and construction of the village.  The scope of work for the project includes site offices, accommodation units, sporting and recreational facilities, paramedical facilities and all related service infrastructure.


The Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (Operator), ExxonMobil and Shell, to develop the Greater Gorgon gas fields, located between 130km and 200km off the north-west coast of Western Australia.  The Greater Gorgon gas fields contain resources of about 40 trillion cubic feet of gas, Australia’s largest-known gas resource.