Santos Awards Kvaerner EPC Contract

Santos has awarded an EPC Services contract to Aker Kvaerner E&C Australia. The contract is for the provision of integrated engineering, procurement and construction (EPC) services for Santos' central Business Unit (CBU), which operates the oil and gas fields in northern South Australia and southwest Queensland.

A potential of A$20-40 million per annum of ongoing EPC services will be provided by this contract. In the past, these services were provided by a range of providers and under this arrangement have been consolidated into a single contract.

The contract was awarded to O&G Solutions, a joint venture between Kvaerner E&C Australia and United KG Pty Ltd. O&G Solutions was established specifically to provide comprehensive and integrated engineering, maintenance and construction services to the oil and gas industry.

Mr. Les Guthrie, Managing Director, Kvaerner E&C Australia, said “Winning this contract is a major achievement for us as it reinforces our reputation and long-standing relationship with Santos who are one of our key clients. The individual strengths of the joint venture partners combine to make O&G Solutions one of Australia’s first true EPC entities, offering the broadest range of capabilities within an integrated service provider.” While the contract is awarded initially for three years, it provides for extensions up to eight years via an annual renewal of the three-year rolling term. “It is our intention to remain the incumbent alliance partner for the full term and our team will therefore be working hard to ensure that our performance meets all our client’s expectations,” said Mr Guthrie.

This contract follows Kvaerner E&C Australia’s recent award for the Santos Asset Control Enhancement (ACE) Project, involving an upgrade of the control facilities at the large Moomba Gas Processing and Natural Gas Liquids Facility in the remote far north of South Australia. The Moomba plant, in the Cooper Basin, supplies gas for New South Wales, Queensland, South Australia and the Australian Capital Territory; ethane as petrochemical feedstock; plus LPG, butane and condensate for both export and local consumption.