AusGroup Limited announced that its Singapore subsidiary, Cactus Engineering & Trading Pte Ltd, has received additional orders from Aker Kvaerner to build riser telescopic joints.
This is in addition to the S$7 to 10 million initial contract secured by Cactus in August 2007.
Telescopic joint is a critical component of the drilling riser string that connects the drilling rig platform to the sea-bed structure. This specialized equipment facilitates vertical movement of a drilling vessel during drilling operations.
In addition, Cactus' production capacity expansion is on schedule with the fabrication workshop on schedule to commence operations in June 2008 while the machining workshop will commence works by January 2009. Both facilities have overhead cranes and have floor areas of more than 4000m2. This represents a production space increase of approximately 70% above the current two properties owned by Cactus. The additional space will bring about addition value-adds that will be developed through efficiency and external assembly areas.
"Our investment plan in Cactus remains on track," said AusGroup Managing Director John Sheridan. "We are encouraged by the strong outlook for subsea development projects and the increased capacity of our new Cactus-AGL facility will position the group to capitalize on this growing market."
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