Leighton Contractors awarded contract to deliver Surat Basin gas field development works Friday, 02 October 2015

Australia Pacific LNG has awarded CMIC Group’s construction company, Leighton Contractors, a contract to deliver gas field development works to the Collaborative Well Delivery project in the Surat Basin, Queensland.

According to Leighton Contractors, the agreement is an effective extension of existing work in upstream infrastructure that it has been delivering to Australia Pacific LNG for the past three years. The company will deliver approximately 200 wells to the Collaborative Well Delivery project per year, in a series of work packages.

The contract is expected to generate approximately $300 million in revenue to Leighton Contractors over two years. There is also an option to extend the contract with an additional two years.

The Collaborative Well Delivery project supports Australia Pacific LNG’s ongoing upstream operations and supply to its LNG export facility on Curtis Island.

CIMIC Group’s executive chairman and CEO Marcelino Fernández Verdes said the business has significant gas sector experience which makes its services suited for clients developing major gas infrastructure, and transitioning to long-term sustaining solutions.

“Our diverse capabilities and ability to consistently deliver to client requirements provide a range of opportunities for us in this sector,” he said.

Leighton Contractors managing director Román Garrido agreed, saying, “Our team’s experience with managing the complex interfaces across design, construction and commissioning and ongoing collaboration with our client will ensure new assets are integrated effectively and deliver value to APLNG operations.”

Chief executive of Origin’s gas and LNG business, David Baldwin, said that the contract means the partnership between Leighton Contractors and Australia Pacific LNG is now extending into the sustain phase.

“The CWD project represents significant savings of 45% per well connected for APLNG relative to wells delivered during the construction phase of the project, in addition to aligning Leighton Contractors and APLNG around an ongoing continuous improvement programme that leverages the experience of both partners,” Baldwin said.

Leighton Contractors will deliver the project with design partner Amec Foster Wheeler, which has also been involved with Australia Pacific LNG projects, designing their upstream linear infrastructure for the past four years.

The companies will utilise local subcontractors, suppliers and personnel from the Western Downs region to deliver at least 15% of the project works.  

CIMIC, previously known as Leighton Holdings, has its head office in Sydney. It provides construction, mining, engineering, concessions, and operation and maintenance services to the infrastructure, resources and property markets.