ShawCor announced its pipecoating division, Bredero Shaw, has received a second contract from Chevron Australia Pty. Ltd. to provide pipeline coatings and related products and services for the flowlines on the Wheatstone Project. This contract is in addition to the previously announced contract to supply coatings on the gas supply trunkline for the Wheatstone Project. The combined value of the two contracts will exceed US $170 million. The insulated flowlines will transport production from the gas fields, which are located offshore North West Australia, to the Wheatstone platform. The gas supply trunkline will transport the produced gas from the Wheatstone platform to the Wheatstone LNG facility that will be located at Ashburton North in Western Australia. The contracts will be executed at Bredero Shaw's facilities in Kabil, Indonesia; Kuantan, Malaysia and Orkanger, Norway. The Kabil and Kuantan facilities are technology-based, full service coating plants that were built specifically to process large, complex projects in the Asia Pacific region. The Orkanger facility is a specialized coating plant established to provide high efficiency thermal insulation systems that meet the performance standards required for onshore and offshore insulated pipelines.
The contracts involve coating approximately 300 km of 10" to 44" diameter pipe that will be protected with fusion bonded epoxy or three layer anticorrosion coatings, Thermotite® polypropylene insulation coating, SureFlo™ internal coating and HeviCote® concrete weight coating. In addition Bredero Shaw has also received a contract for anode procurement and installation as well as custom coating. Work will commence during the second quarter of 2012.
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