Oil Search proposes PNG contract for Monadelphous joint venture

Monadelphous, in a joint venture with Jacobs Engineering, has received a letter of intent for a five-year, $50 million per annum contract for engineering, procurement and construction (EPC) services at Oil Search’s oil and gas production facilities in the Highlands region of Papua New Guinea.

Proposed to start in the second quarter of 2017, the joint venture will provide a range of brownfield project services, including engineering, procurement, civil, mechanical and electrical works on pipelines, utilities, facilities and supporting infrastructure.

According to Monadelphous, the partnership combines its in-field services expertise with Jacobs’ technical engineering capability. The joint venture will lead to productivity enhancements and cost savings for Oil Search, through optimised constructability input during design and a streamlined handover to site, it added.

Monadelphous managing director Rob Velletri said the proposed contract built on the company’s decade-long relationship with Oil Search, having provided brownfield project and maintenance services since 2007.

“The proposed contract represents a new chapter in our relationship with Oil Search, moving towards the provision of end-to-end brownfield project delivery in joint venture with Jacobs,” Velletri said.

“It also reflects our position as a leading maintenance and brownfield project service provider in PNG with a strong safety record and local content strategy.” Source: AustralianMining.com.au