BAM Clough JV Lands LOI for PNG LNG Jetty

Clough announced that the BAM Clough Joint Venture has received a Letter of Intent from Chiyoda JGC Joint Venture to proceed with the design and construction of the LNG and condensate offloading jetty for the PNG LNG project. The contract is valued at approximately US $258 million. Engineering, procurement and planning work for the project has already commenced under a separate advanced work order.

The LNG and condensate jetty will be constructed adjacent to the planned LNG facility twenty kilometers northwest of Port Moresby on the coast of the Gulf of Papua, utilizing an anticipated workforce of up to 500. The scope includes the design and construction of a 2.4km long trestle with substation platform, loading platform and single berth.

BAM Clough JV is a 50/50 joint venture between BAM International bv and Clough Limited. Established in 1965, the joint venture has successfully delivered a number of similar projects in that 45 year period.

"After a nine month tendering period, we are delighted to be selected by Chiyoda JGC JV and ExxonMobil to execute this work with our long-term JV partner, BAM International" said Clough's Chief Executive Officer, John Smith.

"Clough has been operating in Papua New Guinea for 26 years and this award represents Clough's third contract for ExxonMobil's PNG LNG Project. It is a world class project and we will work diligently with our partner to deliver a successful outcome for the Chiyoda JGC JV and the ultimate customer ExxonMobil."

The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facility with the capacity of 6.6 million tonnes per annum. Participating interests include affiliates of ExxonMobil 33.2%, Oil Search Limited 29.0%, Independent Public Business Corporation (PNG Government) 16.6%, Santos Limited 13.5%, Nippon Oil Exploration 4.7%, Mineral Resources Development Company (PNG landowners) 2.8% and Petromin PNG Holding Limited 0.2%.