Skilled Offshore Inks LOI with Saipem to Provide Manning Services

SKILLED Group Limited announced Wednesday that that its wholly owned subsidiary Skilled Offshore Pty Limited (Skilled Offshore) has signed a Letter of Intent (LOI) advising it has been awarded a significant contract with Saipem to provide manning services for the Gas Export Pipeline component of the Inpex-operated Ichthys liquefied natural gas (LNG) Project in the Browse Basin, off Western Australia. This project will construct a 552.39 mile (889 kilometer) pipeline connecting the offshore central processing facility to the onshore processing facility in Darwin.

Under the contract, Skilled Offshore will provide qualified construction & marine crews for engagement on the pipe-lay vessels. The total contract value is approximately $187.06 million (AUD 200 million).

There is also provision for the supply of technical professional roles to the project, which would further increase the value of the contract.

The award is subject to completion of contract documentation which is expected to occur within the next 4 weeks.

Planning for project execution will begin immediately with construction and marine activity expected to commence towards the end of the 2014 financial year. This phase of the project is due to be completed by mid-2015.

Commenting on the contract award, SKILLED Group CEO, Mick McMahon said, “We are very pleased that Skilled Offshore will be supporting Saipem and the Ichthys LNG Project with the provision of highly qualified personnel and a focus on Australian jobs and training opportunities. We will be working in close collaboration with Saipem by providing an innovative approach to recruiting for these positions. This approach will see the Skilled Offshore project delivery team being based in the Saipem project office alongside Saipem personnel to ensure a full alignment of their objectives and successful outcome on this exciting and challenging project.”

“This contract win reflects SKILLED’s capability as Australia’s leading provider of flexible labour solutions, the development of an innovative solution to match client requirements and builds on our expanded presence in Darwin following our recent acquisition of Broadsword Marine Contractors.”

OMSA JV Contract Extended to December 2015

In addition, the OMSA Joint Venture, in which SKILLED Group has a 50 percent interest supplying marine logistics services to the Gorgon project, has been advised that its contract has been further extended from April 2014 to December 2015 under the existing terms and conditions. It is expected that activity levels will reduce through this period as the construction phase of the Gorgon project approaches completion.


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