Contractors Shift Focus In Changing Australian Industry
Australia’s evolving oil and gas industry continues to provide a diverse range of opportunities for contracting companies despite the construction phase of the liquefied natural gas (LNG) industry nearing completion.
Over the past two years Scottish-founded company GE Group has experienced ongoing growth in the Australian market, expansion that is on track to continue as the Australian LNG industry evolves.
GE Group subsidiary Global SCS, a provider of quality management, audit and third party inspection services, has been set up to capitalize on the next phase.
Global SCS entered the Australian market in Western Australia, and has recently opened a second office in Queensland to tap into the state’s bourgeoning coal seam gas (CSG) sector.
David Cross, Global SCS Asia Pacific operations director, said growth in Queensland was core to the continued success of the group in Australia.
“Western Australia has always been perceived as an oil and gas hub in Australia but there is a lot happening over in Queensland now as well,” Cross told Rigzone.
“We opened our office in Queensland in April and have since picked up contracts with companies like Drillsearch and Central Petroleum – we have some traction happening in the state now.”
Cross added that, while the Australia industry was “obviously moving towards a different phase”, Global SCS had experience in the northern hemisphere that would benefit.
“With our experience in the North Sea, where everything is very established, the maintenance and inspection work that is out there (in Australia) suits us well. It is actually moving into a phase that we are more comfortable with,” Cross explained.
International Lure
Like GE Group, Norwegian services company Deep Sea Mooring is a foreign-based group targeting Australia for international growth.
The company expanded its footprint this month by opening a new facility in Perth to provide sales and technical support in Australasia and a yard in Western Australia’s north-west.
Deep Sea Mooring chief executive officer Åge Straume said the company had confidence in Australia’s future as a key global player in the offshore oil and gas industry.
“The number and size of developments offshore Australia has created a steady market for drilling rigs, and with the local industry’s increasingly stringent standards we believe there’s now a strong foundation for long-term growth and success,” Straume said.
“Companies operating in Australia are very QHSE oriented, so they understand the benefits of quality mooring equipment, smarter mooring solutions and performing pre-laying in order to maximize uptime. This fits our profile and our offer is tailored to meet that market demand head on.”
Queensland Market
While the lure is strong for international companies, diversified Australian-based oil and gas contractors are building healthy order books in the changing marketplace.
Perth-based Clough, which has been involved on Australian LNG developments, has also set its sights on Queensland’s CSG sector.
In September, the company was awarded a $70 million contract, in a joint venture with UK company AMEC, at Arrow Energy’s Bowen gas project where it will undertake a production expansion for supply of gas to the domestic market and for LNG export.
According to Clough managing director Kevin Gallagher the project win supported the company’s growth plans by extending its presence across the CSG sector in Queensland.
Oil, Gas Dominance
The importance of Australia’s oil and gas sector has also been highlighted by Monadelphous Group. While the company’s mining division has been hit with a downturn in activity, a focus on winning contracts in the LNG and CSG markets has paid off.
The company’s growth continues to be underpinned by contracts in the sector, contributing 40 per cent of its sales and $1.6 billion (AUD $1.8 billion) of new contracts and extensions in the last financial year.
“More than 70 per cent of the new contracts are in oil and gas,” managing director Rob Velleteri commented in a company report.
“Our broadened exposure to the oil and gas market will continue to provide construction and maintenance opportunities over the medium to longer term as construction activity in mining and minerals slows.”
The company’s major wins have included a $596 million (AUD $680 million) contract at the Ichthys LNG project in Northern Territory, its largest ever contract, and a $175.2 million ($200 million) extension with Chevron at its Gorgon LNG project earlier this month.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally