AusGroup Awarded Major Fabrication Contract for Greater Western Flank Project

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Researched by Industrial Info Resources Australia (Perth, Australia)--Australian-based AGC Industries, a subsidiary of AusGroup Limited (Perth), has been awarded a contract by Fugro-TSM (Leidschendam, Netherlands) for fabrication work associated with Phase I of Greater Western Flank, a subsea development project.

Fugro-TSM is performing subsea installation services and FMC Technologies (NYSE:FTI) (Houston, Texas) is the main supplier of subsea hardware for the Greater Western Flank project, which is owned and operated by Woodside Petroleum (ASX:WPL) (Perth, Australia). Phase I of the project is to tie back Goodwyn GH and Tidepole natural gas fields in the Greater Western Flank area to Woodside's Goodwyn A Platform. The area encompasses 16 fields with an estimated recoverable 3 trillion cubic feet of natural gas and 100 million barrels of condensate.

The AU$13 million ($13.72 million) contract awarded to AGC by Fugro-TSM is for the fabrication of subsea spools, with AGC to carry out the scope of work at the Australian Marine Complex (AMC) in coastal Henderson, Western Australia. The AMC complex was built to allow manufacturing, fabrication, assembly and maintenance for large-scale projects at the site and shipped direct from the warehouses to the project site. The AMC is set up with a Common User Facility, shared by companies Civmec Construction and Engineering, United Industries, Westralian Engineering, AKZO Nobel, Bureau Veritas and many others.

The majority of the work orders being performed at the AMC complex are for Chevron's Gorgon project. BHP Billiton (ASX:BHP), (Melbourne, Australia), Woodside Petroleum (ASX:WPL) (Perth, Australia), Apache Corporation (NYSE:APA) (Houston, Texas) and the Australian Defence Force develop projects with work having been carried out or continuing at the AMC Complex by contractors and subcontractors.

AGC utilises the AMC complex for its heavy structure assembly and construction in its 4,800-square-metre fabrication warehouse, which has direct access to load-out wharves. AGC also operates out of Kwinana, further south of Perth, with six fabrication bay areas on 14,052 square metres of land, and laydown storage and assembly areas on 70,000 square metres of land.

AGC is a growing company with a strong recent history of large-scale project contract wins in the oil and gas industry, as well as other industries. AGC is working on three contracts on the Gorgon project; the separate contracts include the supply and manufacture of 3,000 shear keys, 12 adjustable pipe supports and 8,200 pipe spools. AGC also performed work in fabrication, manufacturing and construction on the Pluto liquefied natural gas (LNG) project, the Blacktip natural gas project, the Van Gogh oil project and the operational North West Shelf Joint Venture Karratha LNG production plant.

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